RealTime IT News

Blue Chips Up, But Techs Take A Breather

Blue chip stocks rose on merger news on Monday, but the Nasdaq continued to digest its three-day, 15% gain.

The ISDEX gained 3 to 674, but the Nasdaq slipped 9 to 3473. The S&P 500 was up 1 to 1397, and the Dow rose 82 to 10,308 on a merger between Honeywell and GE. Volume declined to 465 million shares on the NYSE and 800 million on the Nasdaq. Decliners led by 13 to 12 on the NYSE, but advancers led 19 to 16 on the Nasdaq. The big economic reports for the week are Thursday's employment cost index and Friday's GDP report. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our after hours trading site.

FreeMarkets rose 2 to 49 1/2 on an expanded alliance with Dow component United Technologies . FreeMarkets reports earnings after the close tonight.

Ariba gained 3 7/16 to 133 3/16 on news that it will join the Nasdaq 100 on Friday.

Corning , off 6 to 99 15/16, met estimates at 35 cents a share. The company had pre-announced positive earnings earlier. Corning raised 2001 guidance to $1.40-$1.43, versus current estimates of $1.38.

Cisco slipped 1 1/4 to 56 1/16 on a Barron's article that said the company avoided reporting $18 billion in costs through pooling-of-interest accounting; there is a move on Capitol Hill to end this controversial merger accounting practice. Also, Cisco has been rumored as a possible addition to the Dow when the Honeywell-GE merger goes through.

Amazon.com slipped 2 3/4 to 28 1/16 ahead of its earnings report, which will be announced after the close tomorrow.

Last week's earnings winners continued to gain. Commerce One rose 3 5/8 to 73 5/8, E.piphany climbed 4 11/16 to 94 9/16, Kana added 1 to 27 1/16, and Interwoven rose 5 11/16 to 125 1/2, just above its September 25 closing high of 122 1/16.

Priceline.com added 1/2 to 5 7/8 despite news that Delta Airlines may sell its stake in Priceline and join competitor Hotwire.com.

Ticketmaster Online rose 1 7/8 to 14 1/2 after the company formed a committee to explore alternatives, such as a merger or issuance of additional stock to parent USA Networks.

Stamps.com gained 1/4 to 2 7/8 after announcing it will reduce its workforce by 40%, or 240 positions.

Drugstore.com slipped 1/32 to 2 17/32 despite beating estimates.

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

Now that the initial euphoria is wearing off, it's time to look for signs that this rally has staying power. First of all, we are looking for a high-volume follow-through rally (a 1% gain in volume that is higher than the day before) any time between tomorrow and early next week. Second, we want to make sure the rally doesn't begin to form converging boundary lines, indicating a bearish wedge or pennant formation. It's a little early to look for that, but we'll keep our eyes open. And third, we are watching behavior around key levels. For the Nasdaq, that's almost the entire range from about 3500 to 3800, beginning w