RealTime IT News

Cisco Sends Stocks Soaring

Cisco soared more than 20% on Wednesday after the company said its quarter remains on track despite the September 11 terrorist attacks.

The ISDEX http://www.wsrn.com/apps/ISDEX/ surged 10 to 123, and the Nasdaq soared 88 to 1580. The S&P 500 climbed 20 to 1072, and the Dow climbed 173 to 9123. Volume rose to 1.67 billion shares on the NYSE, and 2.62 billion on the Nasdaq. Advancers led 21 to 9 on the NYSE, and 23 to 12 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, Check Point rose on a better-than-expected warning, but Corning and Research In Motion fell on warnings.

During the day, a better than expected NAPM reading on the services sector helped boost stocks even before the Cisco news, but analysts cautioned that it's too early to gauge any effect of the September 11 attacks.

Cisco sent almost every related stock soaring, including Juniper , Ciena , Applied Micro and Vitesse . Even Nortel reversed an early loss on an earnings warning.

But Openwave plunged 4.44 to 6.62 on a warning, and Homestore lost .85 to 6.20 on a warning.

Priceline rose .40 to 4.07 and Kronos soared 13.31 to 53.71, both on positive preannouncements. TMP Worldwide gained 10% despite warning.

Microsoft , up 3.15 to 56.20, was already rising ahead of the Cisco news on anecdotal reports of early strong Windows XP sales.

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 market continued up through what looked a like a bearish cycle turn without a hitch. However, all the indexes are now very overbought and due for a pullback. This has been one funny market the last couple of weeks, however; oversold markets have continued straight down, and overbought markets have continued straight up. A move above 9150 on the Dow, 1076 on the S&P, and 1596 on the Nasdaq would suggest that the move up is not yet complete. However, all three indexes are sitting just below their March/April bottoms, which could provide substantial resistance here. Those levels are 9100-9400 on the Dow, 1081-1092 on the S&P 500, and 1619-1639 on the Nasdaq. The Dow (first chart) broke down briefly this morning, but then rallied to break out of its bearish rising wedge. If that break out was for real, the 9000-9050 level needs to hold on any pullback tomorrow. 8900-8950 is critical support below that. The S&P 500 (second chart) has so far been contained by its bearish rising wedge. That resistance is likely to be around 1085-1090 tomorrow, and support is 1065 and 1050. The Nasdaq (third chart) faces resistance at 1596-1600 and 1619, and 1540-1550 is first support.

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.