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RealTime IT News

Early Rally Fades

Stocks ended the day modestly higher on Wednesday after a strong rally gave way to profit-taking. Corning fell after hours on cautionary comments.

The ISDEX http://www.wsrn.com/apps/ISDEX/ rose 14 to 454, and the Nasdaq added 18 to 2859. The S&P 500 added 3 to 1364, and the Dow slipped 3 to 10,646. Volume rose to 1.3 billion shares on the NYSE, and 2.55 billion on the Nasdaq. Advancers led by a handful of issues on the NYSE, and 20 to 17 on the Nasdaq. Fed Chairman Alan Greenspan testifies on Capitol Hill tomorrow morning, less than a week before the Fed's next meeting. For earnings reports, visit our earnings calendar at http://www.wsrn.com/apps/earnings/internet.xpl and reported earnings at http://www.wsrn.com/apps/earnings/ireported.xpl. For after hours quotes and news, visit our after hours trading site at http://www.afterhourstrading.com.

Corning fell 4 to 66 after hours after blowing away estimates by 6 cents with 34-cent earnings, but issuing cautious forward guidance. Akamai , VeriSign and Exodus also traded lower after hours despite beating estimates. E*Trade was unchanged after beating estimates by a penny, while Kana plunged 2 1/2 to 7 after missing estimates by 17 cents with a 37-cent loss.

During the day, Broadcom traded as high as 139 1/2 after beating estimates by a penny with 32-cent earnings, and revenues of $376 million topped estimates of $370 million. But Robertson Stephens raised concerns about the sustainability of the company's growth-through-acquisition strategy, sending the stock down 8 11/16 to 124 3/4.

Siebel Systems rose 1 to 79 1/4 on earnings of 20 cents, a nickel ahead of estimates. Compaq surged 2.35 to 22.40 after beating estimates by 2 cents with 30-cent earnings.

Digital River soared 1 7/16 to 8 15/16 after beating estimates by 10 cents with an 11-cent loss. WebTrends tacked on 1 3/16 to 34 15/16 after beating estimates by a penny with 11-cent earnings. Resonate slipped 7/32 to 4 5/8 after the company's 25-cent loss beat by a penny.

1-800-Flowers.com slipped 3/16 to 5 1/2 after beating by 3 cents with a 16-cent loss. Avanex plunged 16 11/16 to 65 3/16 after topping estimates but failing to raise forward guidance.

InterNAP lost 1 9/16 to 8 7/16 after matching estimates with a 41-cent loss. Delano Technology slipped 5/16 to 4 3/16 after the company's 35-cent loss met estimates. New Era of Networks added 11/16 to 5 3/8 after beating estimates by a penny with a 34-cent loss.

FVC.com missed by 5 cents with a 35-cent loss, and the stock dropped 13/32 to 2. CyberSource lost 1/4 to 2 3/4 after bettering estimates by a penny with a 44-cent loss.

RealNetworks fell 1 to 11 1/16 after Merrill Lynch issued a Neutral rating and said Microsoft could do to RNWK what it did to Netscape.

iManage rose 29/32 to 7 9/32 on a deal with Cisco . Portal Software soared 3 9/32 to 11 13/16 on a deal with privately-held TellMe Networks and news that it could win a contract from AOL Time Warner .

Netopia , up 13/16 to 9, will be acquired by Proxim .

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 newslet