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RealTime IT News

Cisco Fallout Continues

Inventory and equipment spending concerns continued to weigh on communications stocks in the wake of cautionary comments from Cisco Systems, and Net stocks dropped on worries about online retailers' financial health.

As if that wasn't enough, traders also awaited the outcome of the closest presidential election in more than 100 years, which may not be decided until 5 p.m. tomorrow. Investors appeared to be pricing in a Bush victory, as drug, tobacco and healthcare stocks rose.

The ISDEX dropped 37 to 620, and the Nasdaq fell 111 to 3304. The S&P 500 lost 10 to 1421, and the Dow rose 36 to 10,988. Volume rose to 412 million shares on the NYSE, but declined to 742 million shares on the Nasdaq. Advancers led by 13 to 11 on the NYSE, but decliners led 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.

The announced demise yesterday of Pets.com and MotherNature.com pressured shares of e-tailers. Merrill Lynch analyst Henry Blodget expressed concern about the ability of three stocks to raise the financing they will need to continue, and cut their ratings to Neutral: eToys , off 1 to 2 3/8, Webvan , down 1/4 to 1 7/16, and Buy.com , which lost 3/16 to 1 3/4.

Amazon.com , down 1 11/16 to 35 1/4, fell on a Wall Street Jorunal report that the SEC is scrutinizing the company's treatment of stock deals with other Internet companies.

Cisco , down 3 5/16 to 53 7/16, finally joined in the selling it inspired yesterday on inventory buildups and comments that equipment spending could slow. Broadcom dropped 21 3/8 to 155 1/8, PMC Sierra lost 7 1/16 to 120 13/16, Vitesse dropped 8 3/8 to 64 11/16, JDS Uniphase lost 3 1/4 to 70 7/8, and Juniper fell 16 7/8 to 193 13/16. Technical note: Broadcom may have broken out of a head and shoulders top yesterday, with downside potential to 125.

Art Technology Group fell 10 1/2 to 45 on concern about the strength of the company's business.

VerticalNet dropped 2 3/8 to 25 7/16 on a USB Piper Jaffray downgrade on concern over the company's acquisition of SierraCities.com.

America Online lost 1.89 to 55.72 on news that the Federal Trade Commission is demanding new concessions ahead of a vote tomorrow on the company's merger with Time Warner. AOL Latin America gained 3/8 to 6 3/4 on a better-than-expected loss.

Oplink Communications dropped 2 1/8 to 23 9/16 despite beating estimates by 3 cents with a breakeven quarter. TMP Worldwide slipped 5/8 to 71 1/2 despite beating earnings estimates. PFSWeb lost 27/32 to 1 15/32 after missing estimates and lowering forward guidance.

Engage lost 3/8 to 3 9/16 on a Chase H&Q downgrade.

Some technical comments on the market: Note: We are now including charts in the technical market commentary. If you can't get the charts via the e-mail newsletter version, try this link: http://www.afterhourstrading.com/column.html

Special report: For a free introduction to technical chart patterns and an overview of this year's action in the stock market, visit http://www.interne



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