RealTime IT News

Market Awaits Election Outcome

Stocks ended the day little changed on Tuesday, as traders awaited the outcome of what was billed as the closest presidential election in 40 years. Cisco Systems rose on better-than-expected earnings, but sent everyone else lower on inventory and equipment spending concerns.

The ISDEX lost 7 to 657, and the Nasdaq slipped half a point to 3415. The S&P 500 was down fractionally to 1431, and the Dow lost 25 to 10,952. Volume declined to 877 million shares on the NYSE, but rose to 1.7 billion shares on the Nasdaq. Advancers led by 14 to 13 on the NYSE, but decliners led 19 to 18 on the Nasdaq. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our after hours trading site.

Pets.com plummeted 46.87 cents to 3/16 after announcing it will shut down operations. The company announced the layoff of 255 of its 320 employees, and said it will sell the majority of its assets. The company, which still has $30 million in cash, said it took the action now so it could return something to shareholders.

Cisco , up 1 11/16 to 56 13/16, beat earnings estimates by a penny with 18-cent earnings, and revenues of $6.52 billion topped estimates. It was the 11th straight quarter of accelerating revenue for Cisco, which guided forward estimates higher. The company said gross and operating margins will continue to contract. But what worried investors were comments that equipment spending appears to be slowing for everyone but Cisco, and the company's inventory backlog, which sent shares of competitors and communications chip suppliers lower. Cisco also said it is facing competition from hundreds of start-ups, but that enterprise and service providers appear to favor established companies. Broadcom dropped 42 3/8 to 176 5/8, PMC Sierra plummeted 24 7/16 to 129 3/8, Vitesse dropped 7 5/16 to 73 1/16, JDS Uniphase lost 3 9/16 to 73 7/8, and Juniper fell 8 5/16 to 210 1/2. Cisco said circuit, voice and IP spending have been most affected by the slowdown, while network spending has been less affected.

Inktomi rose 2 13/16 to 68 3/4 on an alliance with Teleglobe. Merrill Lynch had expressed concern that Inktomi could get hit by the Cisco fallout.

SierraCities.com rose 1 3/4 to 6 on news that it will be acquired by VerticalNet for $7 a share.

24/7 Media climbed 7/32 to 5 19/32 after the company's Sabela Media subsidiary settled a patent infringement case brought by DoubleClick , which rose 3/4 to 20. DoubleClick also settled patent litigation with L90 , off 1/4 to 6.

Homestore.com lost 29/32 to 38 3/32 after the Justice Department broadened its antitrust investigation into the company.

CAIS Internet slipped 11/16 to 3 13/16 after missing loss estimates. Women.com , off 5/32 to 1 5/32, beat estimates, and The Knot , off 3/16 to 2 1/16, matched estimates.

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