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RealTime IT News

Blue Chips Rise, Techs Fall

Blue chip stocks rose Monday despite a warning from 3M, but tech stocks took a breather after strong recent gains.

The ISDEX http://www.wsrn.com/apps/ISDEX/ rose fractionally to 246, and the Nasdaq slipped 11 to 2148. The S&P 500 rose 12 to 1236, and the Dow surged 91 to 10,593. Volume declined to 1.1 billion shares on the NYSE, and 1.5 billion on the Nasdaq. Advancers led 15 to 14 on the NYSE, but decliners led 22 to 15 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.

Security stocks fell after hours on a warning from Internet Security Systems , which plunged 15 points in after-hours trading. E.piphany and Rational Software also warned.

During the day, the National Association of Purchasing Management survey for June came in stronger than expected, adding to traders' hopes of an economic recovery.

GlobeSpan , up .15 to 14.75, was the latest chip company to survive an earnings warning.

Priceline.com , up more than 800% off its December low of 1.06, surged .85 to 9.90 on positive comments from Morgan Stanley analyst Mary Meeker.

HotJobs.com soared 3.49 to 12.49 on word that it will be acquired by Monster.com parent TMP Worldwide for $460 million.

Ciena lost 1.49 to 36.51 on an SG Cowen downgrade. But Cisco , up .92 to 19.12, continued to rise on company comments that the inventory correction may be nearing the end.

Art Technology fell 1.08 to 4.72 on a revenue warning. NVIDIA fell 4.09 to 88.66 on a negative article in Barron's.

University of Phoenix Online surged 6.20 to 48.70 after announcing a 3-for-2 stock split, payable July 20.

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

A mixed picture still, but not a bad day for the techs. The Nasdaq and Nasdaq 100 (first two charts) continue to hold above the broken support levels reclaimed last week, a plus. However, both of them continue to struggle at downtrend lines formed off the May 22 peaks. The Nasdaq would clear that line with room to spare at 2200, but a move much below today's close of 2148 would send the index back below that reclaimed support, a head and shoulders neckline. The S&P 100 and 500 (third and fourth charts) both cleared downtrend lines today, but continue to struggle at their head and shoulders necklines, at 642 on the S&P 100, and 1240-1260 on the S&P 500. 623 is critical support on the S&P 100, and 1200 is key support on the S&P 500. The Dow (fifth chart) finally took out its most basic downtrend from last month. A move above 10,700 on the Dow would be a plus, and below 10,450 the index has room to 10,250-10,300. The market is short-term overbought, but tomorrow's pre-holiday shortened trading session should have a positive bias. Starting Thursday, July 5, however, we enter a major turn window until Tuesday, July 10, a Puetz crash window. The market commentary will return next week. Happy Holiday.

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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