Stocks Post Modest Gains

It was a tale of two markets on Tuesday, as companies meeting estimates were rewarded and those missing their numbers were punished.

The ISDEX http://www.wsrn.com/apps/ISDEX/ rose 5 to 421, and the Nasdaq added 34 to 2792. The S&P 500 climbed 7 to 1350, and the Dow rose 61 to 10,639. Volume was unchanged at 530 million shares on the NYSE, but declined to 950 million on the Nasdaq. Advancers led by 16 to 9 on the NYSE, and 18 to 16 on the Nasdaq. Fed Chairman Alan Greenspan testifies on Capitol Hill on Thursday, a week before the Fed's next meeting. 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.

Openwave , up 8 1/8 to 61 3/8, posted the surprise of the earnings season, reporting earnings of 9 cents a share, 12 cents better than estimates. Revenue grew 36% sequentially, and analysts raised earnings estimates for 2001 by more than 200%, from 15 cents a share to 50 cents a share.

EMC rose 2 3/8 to 78 7/8 after the company beat estimates by 2 cents with 25-cent earnings. Vitesse rose 5 9/16 to 72 13/16 after beating estimates by a penny with 25-cent earnings. FTD.com surged 1 7/32 to 3 15/16 after posting yet another profitable quarter. Interwoven , up 1 to 30 1/2, beat estimates by a penny with 2-cent earnings. FileNet surged 5 5/16 to 27 3/8 after topping estimates.

FreeMarkets led to the downside, off 5 5/16 to 21 3/8 after beating estimates by 4 cents with a 27-cent loss. Analysts were concerned about lower than expected auction volumes. Texas Instruments fell 3 9/16 to 45 after missing estimates by 2 cents with a 31-cent loss and lowering forward guidance.

Broadcom , off 4 7/16 to 124 3/8, heads the list of companies reporting tonight.

iPrint.com lost 9/32 to 1 1/16 despite beating estimates by a penny with a 23-cent loss. Extended Systems , down 2 5/8 to 25 7/8, beat estimates by 2 cents with a 15-cent loss. DigitalThink , off 5/8 to 15, met estimates with a 17-cent loss. Geoworks , down 11/32 to 4 17/32, missed by a penny with a 23-cent loss.

DoubleClick climbed 1 1/2 to 16 7/8 after the Federal Trade Commission closed its inquiry into the company's ad serving and data collection practices.

E*Trade , up 1/2 to 12 13/16, announced that it is moving to the New York Stock Exchange next month, to trade under a new symbol of ET.

Homestore.com added 1 5/8 to 28 1/2 on news that AOL Time Warner has purchased a 5.7% stake in the company.

InfoSpace , down 31/32 to 6 1/16, continued to fall on yesterday's management shakeup.

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 and S&P 500 are sending some mixed signals here. While the indexes are showing some nice strength today, they are so far just rising beneath their smaller rising channels broken yesterday (first and second charts). That action would appear to be a prelude to a correction of some sort. As we have said, we expect any pullback to be modest, perhaps to the