RealTime IT News

Greenspan Can't Save Nets, Techs

Technology and Internet stocks fell sharply on Thursday, as a cautionary outlook from Corning outweighed hints by Fed Chairman Alan Greenspan that more rate cuts are in the offing.

The ISDEX http://www.wsrn.com/apps/ISDEX/ fell 29 to 424, and the Nasdaq lost 104 to 2754. The S&P 500 was down 6 to 1357, and the Dow rose 80 to 10,727 on strength in economically sensitive issues. Volume declined to 1.2 billion shares on the NYSE, and 2.2 billion on the Nasdaq. Advancers led 15 to 12 on the NYSE, but decliners led 22 to 15 on the Nasdaq. The Federal Reserve meets next Tuesday and Wednesday. 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, JDS Uniphase , Qualcomm , Art Technology and E.piphany beat estimates, while BroadVision and Looksmart missed their numbers. Sapient and PMC Sierra met estimates.

During the day, Corning fell 13 13/16 to 56 5/16 after blowing away estimates by 6 cents with 34-cent earnings, but issuing cautious forward guidance. Akamai fell 5 3/4 to 29 5/8 despite beating estimates by 7 cents with a 61-cent loss. VeriSign lost 8 1/8 to 73 3/8 despite beating estimates by a dime with 21-cent earnings and raising forward guidance. Exodus declined 3 3/8 to 24 13/16 after beating estimates by 3 cents with a 13-cent loss, but guiding estimates lower because of its acquisition of Global Center.

E*Trade slipped 1/32 to 13 15/16 after 2-cent earnings beat estimates by a penny. Kana plunged 2 11/16 to 6 3/4 after missing estimates by 17 cents with a 37-cent loss.

Click Commerce soared 4 13/16 to 29 1/8 after beating estimates by a nickel with a 2-cent loss and saying it expects to achieve full-year profitability. Juno rose 3/16 to 3 25/32 after beating estimates by 23 cents with a 29-cent loss.

Newport plunged 24 3/16 to 84 1/4 after beating estimates by 3 cents with 36-cent earnings, but predicting flat sales for the first quarter. Foundry rose 1 1/16 to 22 after beating estimates by 5 cents with 17-cent earnings.

Veritas fell 8 11/16 to 95 3/8 despite beating estimates by 2 cents with 19-cent earnings. NetObjects slipped 3/16 to 1 1/32 after topping estimates by 11 cents with a 27-cent loss. Virata rose 11/16 to 15 1/4 despite missing by a penny with 1-cent earnings. NextCard rose 5/16 to 10 after beating by a penny with a 37-cent loss.

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 finally broke out of its rising channel today (first chart) and appears to be starting its overdue correction. The 2650-2750 area could provide some support, but we'd like to see the index fill the gap at 2618.55 to remove that downside lure (the corresponding gap in the Nasdaq 100 is 2470.72). The maximum downside expected is about 2500, the lower channel boundary (black line) in that chart.