Techs, Nets Restrained By Blue Chips

A strong rally in technology and Internet stocks faded late in the day on Wednesday, restrained by weakness in blue chip stocks. IBM traded 7% higher after the close after beating estimates.

The ISDEX http://www.wsrn.com/apps/ISDEX/ gained 18 to 407, and the Nasdaq climbed 64 to 2682, 74 points off its high. The S&P 500 added 2 to 1329, and the Dow fell 68 to 10,584, weighed down by an earnings miss from 3M. Volume rose to 1.33 billion shares on the NYSE, and 2.8 billion on the Nasdaq. Advancers led by 15 to 13 on the NYSE, and 23 to 15 on the Nasdaq. The Consumer Price Index was in line with expectations, but the Fed Beige Book survey showed economic weakness, weighing on stocks when it was released in the afternoon. 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.

i2 Technologies beat estimates by a penny after the close, with 9-cent earnings. The stock added 2 1/4 to 56 after hours, after trading up more than 5 points during the day.

During the day, Intel lost 1 1/16 to 30 5/16 after beating estimates, but guiding first quarter results down 15% sequentially, much worse than analysts expected. However, traders were encouraged by the company's claims that business will improve in the second half of the year, and a big boost in capital equipment spending sent chip equipment stocks soaring.

Juniper rose 7 to 135, but 10 points off its high, after blowing away earnings and revenue estimates and raising forward guidance. Earnings were 24 cents a share, 6 cents ahead of estimates. Applied Micro surged 9 5/8 to 80 after beating earnings estimates but coming in light on revenues. Broadcom rose 10 3/4 to 128 5/8, and PMC Sierra soared 11 9/16 to 91 1/2.

Handspring slipped 3/8 to 44 1/2 after trading as high as 50 3/8 after topping estimates by 9 cents with a 7-cent loss.

Support.com rose 2 1/4 to 14 3/4 after beating estimates. Ameritrade , up 1/16 to 9 7/8, matched estimates.

VA Linux fell 1 15/16 to 7 3/16 on an earnings warning. Netopia slipped 17/32 to 5 7/8 after missing estimates.

Allaire , up 13/16 to 8 3/4, will be acquired by Macromedia for 0.2 MACR shares and $3 in cash for each ALLR share. Chicago Board of Options Exchange officials announced an investigation into unusual trading in ALLR options yesterday.

WebTrends fell 4 to 28 7/8 despite announcing that it will be acquired by NetIQ for 0.48 NTIQ shares per WEBT share.

General Magic rose 15/32 to 2 1/2 on news that voice recognition partner Nuance will power General Motors' new voice-driven OnStar system.

Aether rose 2 3/4 to 42 11/16 on a deal with E*Trade .

Yahoo rose 2 5/8 to 30 on takeover rumors.

NorthPoint was halted at 1 13/32 after filing for bankruptcy protection.

USinternetworking fell 1 to 4 1/16 after lowering forward guidance.

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