RealTime IT News

Waiting For The Fed

Blue chips rose while technology and Internet stocks treaded water ahead of tomorrow's Federal Reserve decision on interest rates. Consumer expectations plunged to their lowest level in seven years, raising hopes for a 50-basis point rate cut.

The ISDEX http://www.wsrn.com/apps/ISDEX/ slipped 1 to 441, and the Nasdaq added 2 to 2840. The S&P 500 climbed 1 to 1365, and the Dow surged 87 to 10,789. Volume rose to 500 million shares on the NYSE, and 970 million on the Nasdaq. Advancers led 15 to 13 on the NYSE, and 18 to 15 on the Nasdaq. The Federal Reserve meets today and Wednesday; traders are hoping for a 50-basis point rate cut. The decision is expected to be announced at 2:15 tomorrow. Consumer confidence fell to its lowest level in four years, and consumers' expectations for the future fell to recessionary levels. Fourth quarter GDP will be reported tomorrow morning. 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.

InfoSpace slipped 7/32 to 5 25/32 despite topping estimates by 3 cents with 4-cent earnings. But the company warned of future results and announced a major shift in business focus away from its consumer portals.

Nokia fell 2.80 to 34.19 after warning of weaker than expected results, continuing a string of troubles for wireless handset makers.

AvantGo soared 1 5/8 to 9 5/8 on an alliance with Research In Motion . AVGO reports earnings tonight.

Amazon.com slipped 15/16 to 19 3/16 ahead of its earnings report tonight. AOL Time Warner lost 1.32 to 53.68 ahead of its earnings report tomorrow morning.

Brocade dropped 9 5/16 to 95 5/8 on negative comments from Goldman Sachs.

Ariba rose 3/4 to 39 on positive comments from Lehman Brothers, which said the company's acquisition of Agile fills a need for a collaborative product design offering.

eGain surged 1 1/32 to 5 15/16 after beating estimates and announcing that it expects to be breakeven by the end of the year. iBasis , up 1 3/8 to 8 9/16, said it expects to achieve profitability in the first quarter of 2002, and also announced a partnership with red-hot Openwave .

Expedia tacked on 5/8 to 17 3/8 after beating estimates by 9 cents with a 6-cent loss. Eathlink also beat by 9 cents, with a loss of 42 cents, and the stock rose 13/32 to 8 29/32.

MarketWatch.com , up 17/32 to 4 27/32, topped estimates, as did Hoover's , off 5/16 to 3 9/16.

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 continues to form what looks like a bull flag (the small blue lines in the first chart), giving the index 500-600 points of upside potential. Also, the index continues to hold above its broken September downtrend line, another plus.

On the intraday charts, the Nasdaq is trading below broken support (the gray line). One near-term support is that small black line at 2700, the top of the gap at 2618.55 (the corresponding gap in the Na