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RealTime IT News

Techs, Nets Lag Blue Chips

Blue chip stocks outperformed Internet and technology issues on Friday, despite better-than-expected earnings from JDS Uniphase.

The ISDEX slipped 6 to 600, but the Nasdaq tacked on 6 to 3278. The S&P 500 climbed 14 to 1379, and the Dow soared 210 to 10,590. Volume slipped to 1 billion shares on the NYSE and 2 billion on the Nasdaq. Advancers led by 17 to 10 on the NYSE and 20 to 18 on the Nasdaq. The GDP report came in weaker than expected, with some signs of inflation pressures, but wasn't as bad as traders feared. Financial stocks rallied on the news, perhaps anticipating a Fed easing. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our after hours trading site.

JDS Uniphase rose 3 1/16 to 77 1/2 after the company's 18-cent earnings beat estimates by 2 cents. Revenues of $786.5 million beat estimates of $750-$760 million, and the company guided forward estimates higher. Nortel's revenue miss on Tuesday gave Internet infrastructure companies a tough couple of days. Juniper Networks was off 7 1/8 to 183 despite a Banc of America Buy rating and $270 price target. Technical note: JNPR cannot close at 174 or lower, or it will break a broadening top, with potential downside to 120.

Cisco Systems , off 2 9/16 to 51, was weak on rumors of an impending downgrade from a major brokerage. The company reports earnings Nov. 6.

Inktomi dropped 15 to 68. The company beat estimates by 2 cents with 7-cent earnings, but lowered forward guidance. Technical note: We reported some time ago that Inktomi broke a bearish descending triangle at 87. The stock could have downside to 50 and potentially lower.

Amazon.com slipped 1 9/16 to 35 5/16 on a Lehman Brothers report that claimed the company had reclassified $96 million in equity investments as cash, inflating the company's cash level by 10%. Lehman said the reclassification raises balance sheet concerns, and continued to urge investors to avoid Amazon's convertible bonds.

Art Technology Group , off 19 9/16 to 65, beat earnings estimates but filed for a 4.7 million secondary share offering.

Lycos rose 5/16 to 41 after shareholders approved the company's merger with Terra Networks .

Sapient gained 5 to 36 after matching estimates with 12-cent earnings. CS First Boston issued a broad downgrade of e-consultants, saying the stocks had little upside but could fetch attractive buyout premiums.

Handspring , off 17 to 78 1/2, dropped on a warning from British handheld maker Psion, but Merrill Lynch defending HAND, Palm and Research In Motion , saying Psion's problems were company-specific.

Homestore.com surged 8 to 37 1/4 on news that it was buying Cendant's real estate portal for about $760 million in stock.

Aether Systems added 2 25/32 to 96 29/32 after beating estimates by 25 cents with a 40-cent loss. Clarent , up 4 1/4 to 32, beat estimates by 7 cents with 4-cent earnings. NBC Internet , up 1 5/32 to 6 1/16, beat estimates and guided forward estimates higher.

Digex fell 4 3/4 to 36 1/2 after beating estimates by 3 cents with a 61-cent loss. MicroStrategy rose 1 3/8 to 24 3/8 after beating estimates by 16 cents with a 37-cent loss.

InterTrust tacked on 3



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