RealTime IT News

Nets, Techs Fall Again

Technology and Internet stocks continued to struggle in the wake of Cisco's earnings miss, but KPMG Consulting managed to crack a tough IPO market.

The ISDEX http://www.wsrn.com/apps/ISDEX/ slipped 5 to 363, and the Nasdaq fell 45 to 2562. The S&P 500 lost 8 to 1332, and the Dow declined 66 to 10,880. Volume declined to 1 billion shares on the NYSE, and 1.8 billion on the Nasdaq. Decliners led 16 to 14 on the NYSE, and 20 to 16 on the Nasdaq. 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.

KPMG Consulting , the consulting arm of Big Five accounting firm KPMG LLC, priced at 18, opened at 20 7/16 and hit 24 1/4 before pulling back. The Internet and technology consulting firm had $2 billion in revenues and $28.3 million in net revenues last year, so its size and profitability helped it crack the IPO market. For more on KPMG, visit Alert-IPO.com and ISR's IPO Tracker.

PurchasePro dropped 3 13/16 to 15 5/16 after Prudential downgraded the stock over lower adoption rates. Prudential also said that a lawsuit filed by an imprisoned money launderer alleging theft of a business idea is likely frivolous, but could hurt investors' perceptions of the company.

Corvis , up 5/16 to 19 13/16, was rumored to be a takeover target of Cisco . Corvis also said it sees no slowdown in business.

EMC fell 5.89 to 59.50 on rumors that it suffered a difficult business environment in January. Competitor Network Appliance traded off 3 1/2 to 35 1/8, but moved back to breakeven when it topped estimates after the close.

Aether Systems , down 6 7/64 to 30 3/4, continued to plunge on concern about the company's ability to achieve profitability.

FreeMarkets rose 4 3/16 to 23 15/16 after announcing the acquisition of privately held collaborative solutions firm Adexa.

RealNetworks tacked on 1/32 to 8 21/32 after appointing Larry Jacobson president and COO.

Extreme Networks slipped 3/16 to 31 1/2 after trading as high as 35 1/16 after affirming its 2001 outlook.

internet.com , publisher of this Web site, slipped 7/16 to 7 5/8 after matching estimates with a 3-cent fourth-quarter gain. But the company said it expects first-quarter revenues of $15-$17 million, less than analysts' average estimate of $17.3 million. The company's full-year guidance was in line with Wall Street estimates.

barnesandnoble.com , off 3/16 to 1 15/16, missed estimates, issued an earnings warning and announced 16% layoffs. NetZero , down 1/4 to 1 1/32, also missed estimates, as did AskJeeves , down 5/16 to 2 7/16.

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 and Nasdaq 100 ran into resistance at their lower rising channel boundaries broken yesterday (first and second charts). Unless the indexes can reclaim those broken lines, they could face more downside ahead. The Nasdaq