Fed Derails Rally
The Federal Reserve's decision to maintain its bias in favor of higher interest rates derailed a promising rally on Wednesday.
The ISDEX
Sycamore Networks
MP3.com
Internet advertising stocks were weak after Merrill Lynch analyst Henry Blodget said the fourth quarter is starting out softer than he expected, and said the weakness could remain through the first half of next year. He said America Online
Juno Online
SmarterKids.com
Covad
Garden.com
Ariba
Some technical comments on the market: Note: We are now including 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 100 broke its bearish pennant to the downside after the Fed decision, but found support at 3000. Interesting that a line drawn across that new low creates either a bear flag or a nice uptrend channel. Another test of that line and we'll call it support. A further breakdown could lead to a decline in the 2500-2750 range.
slipped 3 to 565, and the Nasdaq rose 27 to 3165. The S&P 500 climbed 7 to 1390, and the Dow rose 26 to 10,707. Volume declined to 1.07 billion shares on the NYSE and 1.7 billion shares on the Nasdaq. Advancers led by 16 to 11 on the NYSE, but decliners led 20 to 18 on the Nasdaq. The Consumer Price Index will be reported tomorrow. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our after hours trading site.
, up 4 1/16 to 68 1/2, beat estimates by a penny with 1-cent earnings, trounced revenue estimates, and guided estimates higher.
soared 2 7/32 to 6 7/32 after settling a copyright infringement suit with Universal Music Group.
is the most insulated of the major Net companies, while Yahoo
is more exposed. DoubleClick
lost 2 1/16 to 16, Yahoo slipped 2 5/16 to 57 1/8, and AOL declined .46 to 49.44.
, up 1/2 to 3 3/8, and Earthlink
, up 25/32 to 7 29/32, rose on a Washington Post report that AOL and Time Warner are in talks to provide the ISPs access to cable lines in an effort to win government approval of their merger.
, off 1/32 to 1 15/16, will merge with privately-held Earlychildhood.com.
slid 1 1/4 to 4 1/8 after announcing it will restate third-quarter results to reflect additional delinquent accounts.
, off 5/32 to 3/32, announced it will shut down retail operations.
, off 6 1/4 to 92 1/2, continued to struggle at broken support at 100.