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Oracle Tops Estimates

Oracle rose after hours after beating estimates by a penny, ending a down day on an upbeat note.

The ISDEX http://www.wsrn.com/apps/ISDEX/ fell 12 to 209, and the Nasdaq lost 39 to 1988. The S&P 500 dropped 5 to 1208, and the Dow climbed 21 to 10,645 on strength in GM and United Technologies. Volume declined to 1.1 billion shares on the NYSE, and 1.56 billion on the Nasdaq. Decliners led 17 to 13 on the NYSE, and 26 to 11 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, Oracle rose more than a point after hours to 16 after topping estimates by a penny with 15-cent earnings, but revenues came in about $100 million light at $3.26 billion. The company said next quarter will be flat, with some room for upside, but that strong growth likely won't return until the end of the year.

During the day, B2B software firms Ariba and Commerce One fell to new lows, but recovered modestly after hours on Oracle's earnings report.

Fiber optics firms once again led to the downside during the day. An front-page article in the Wall Street Journal on the glut of next-generation network capacity focused on Qwest , down 3.18 to 29.82, and Level 3 , off 1.65 to 5.97, which didn't help matters any by issuing an earnings warning before trading began. Comments about pricing pressure hurt Global Crossing , off .98 to 7.68.

Juniper Networks fell 2.49 to 28.65, undercutting its April 4 low, and the Networking Index also fell to a new low.

Net infrastructure companies were hit by negative comments from Goldman Sachs, among them Exodus and Metromedia Fiber , which also warned after the bell. Positive comments from Goldman didn't do much for Akamai , which lost .79 to 6.72.

Microsoft and IBM were pressured by earnings concerns.

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 Nasdaq (first and second charts) and S&P 500 (third chart) closed around their April breakout gaps at 2000 and 1200, respectively, a good place for a bounce to begin. The Nasdaq is also near a 50% retracement (1974) of the 1619-2328 run. However, given the technical breakdowns last week, we suspect the bounce will be a modest one, capped by 1240-1250 on the S&P 500, 642 on the S&P 100, 2100 on the Nasdaq, 1770 on the Nasdaq 100, and 10,870 on the Dow (the Dow's chart is the fourth one below); those are the necklines of the head-and-shoulders tops that broke down last week. If the indexes can clear those resistance levels, the bearish case would be weakened. Finally, the fifth chart: the S&P 500's recent rejection around the 1300 level looks like the retest of a borken top that has been forming in the index since December 1998. One more argument in favor of the importance of the 1300 level.

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.