RealTime IT News

Techs, Nets Slip Ahead Of Yahoo's Earnings

Technology and Internet stocks slipped ahead of Yahoo's earnings report, due out after the close. Weakness in semiconductor stocks weighed on the market.

The ISDEX lost 12 to 679, and the Nasdaq dropped 55 to 3300. The S&P 500 slipped 5 to 1396, but the Dow rose 7 to 10,575. Volume rose from Monday's light holiday trading, to 430 million shares on the NYSE and 775 million on the Nasdaq. Decliners led by 13 to 12 on the NYSE and 20 to 13 on the Nasdaq. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our after hours trading site.

Yahoo slipped 1 7/8 to 83 7/8 ahead of its earnings report. Analysts expect the company to earn 12 cents a share. eBay fell 3 1/8 to 57 13/16, but Amazon.com rose 3/4 to 30 13/16.

Ticketmaster Online slipped 3/8 to 14 after announcing an expanded partnership with Yahoo. Net2Phone rose 1 9/16 to 22 1/8 on news that the company and Yahoo will partner to offer voice-based services.

National Discount Brokers soared 21 11/16 to 46 15/16 on a $49-a-share takeover offer from Deutsche Bank. NDB also said it had received merger inquiries from other companies.

Incubator Safeguard Scientifics rose 1 1/16 to 18 1/4 after partner company Nextron filed for an IPO.

Open Market dropped 27/32 to 3 3/32 on an earnings warning.

B2B stocks, yesterday's big winners, were weak. One exception was BroadVision , which climbed 1 3/8 to 23 5/16, continuing yesterday's gains on a partnership with i2 , which lost 5 1/2 to 167 1/2. VerticalNet added 1/4 to 25 15/16, continuing to gain on positive mention from analysts yesterday.

Akamai , a big winner yesterday, lost 2 1/2 to 41 7/16 after Merrill Lynch lowered its long-term rating to Accumulate from Buy.

Inktomi slipped 2 15/16 to 93 9/16. As we said last week, the stock may be forming a descending triangle, similar to one that Priceline broke down out of at 32. A close below 87 would be a big negative for Inktomi.

Some technical comments on the market: Note: We are now including charts with the technical market commentary; just click on the links in the story below to go to them. If you have trouble accessing the charts via the e-mail newsletter version, try this link: http://www.afterhourstrading.com/column.html

The Nasdaq continues to find support around its October 1999 trendline. Now we need some good earnings reports to get some bounce in this market. To the upside, we want to see the Nasdaq get back above 3400, a small downtrend within a downtrend, then 3521, its previous bottom, and then 3600, its main downtrend line. As we said yesterday, that downtrend chart is actually a positive: bear markets tend to form clear downtrend channels only toward the end. Earlier "panic" phases, like the April and May sell-offs, do not form parallel trendlines.

The ISDEX found support yesterday at a trendline from its August 1999 lows. The index seems to be in a 200-point trading range between 650 and 850. This pattern, called a r