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RealTime IT News

Stocks Drop Again

The boost from the latest Federal Reserve rate cut didn't last long, as earnings worries sent the Nasdaq and S&P 500 back below the level where the Fed cut rates a week ago.

The ISDEX http://www.wsrn.com/apps/ISDEX/ fell 7 to 233, and the Nasdaq lost 42 to 2016. The S&P 500 declined 14 to 1209, and the Dow dropped 77 to 10,454. Volume rose to 1.21 billion shares on the NYSE, and 1.98 billion on the Nasdaq. Advancers led 15 to 14 on the NYSE, but decliners led 20 to 18 on the Nasdaq. 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.

After the close, Amazon.com rose after beating estimates by 4 cents with a 21-cent loss. The company said it expects to be break-even by the end of the year. GoTo.com beat estimates and guided forward estimates higher, and BroadVision beat by a penny. Applied Micro matched lowered estimates.

Stocks got an early boost on news that consumer confidence was weaker than expected, but earnings concerns soon took center stage.

Check Point plunged 10.19 to 62.20 after beating estimates, but coming in light on revenues and shy of the 35-cent whisper number.

Commerce One rose .60 to 9.36 on a deal with CitiGroup , but FreeMarkets fell 1.02 to 9.27 after beating estimates but lowering forward guidance.

JDS Uniphase fell 3.32 to 20.86 after beating estimates but warning of future results. Lucent soared 1.05 to 10.25 after missing estimates, but rose on better-than-expected revenues and margins and a positive conference call.

Excite@Home added .02 to 3.89 despite missing estimates and warning. Computer stocks were battered on Compaq's earnings miss and weak outlook.

Some technical comments on the market: Note: We include 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

The Dow and S&P 500 rolled over today, but the Nasdaq hung on. The Nasdaq will need to open at 2020 or higher tomorrow to avoid breaking its uptrend (first chart). If the index opens unchanged or heads down in the morning, first support is 2000, the top of a breakout gap. If this is a bottom, the Nasdaq needs to hold the 1950 level, the descending neckline in that first chart, or a retest of the lows may be in store. A move above the 2250-2300 area would be bullish, but a failure below that level would be bearish, so we want to see the index turn up at 1950 if it gets that low. The S&P 500 broke its uptrend today (second chart). The S&P has a breakout gap at 1200 that could provide support, and below that, the index must hold 1180. A move above 1300 would be bullish, but a failure here would be bearish. The Dow broke its uptrend today (third chart). 10,330 could provide support, but an objective look at that chart says the Dow could head back to 9400. To the upside, the Dow needs to take out the important 10,859 level, where its steep sell-off began, and the looming failure below that level is beginning to look bearish.

Special report: For a free introduction to technical chart patterns and an overview of last year's action in the stock market, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.



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