Security, Storage Latest Sectors To Get Hit
Internet and technology stocks began the new year on a familiar down note, led lower by security and storage stocks.
The ISDEX http://www.wsrn.com/apps/ISDEX/
Internet infrastructure stocks continued to get hit on fears of lower capital expenditures. Inktomi
Robbie Stephens downgraded a host of stocks in the Internet infrastructure space on concern that the companies will be hit by the economic slowdown, among them: CacheFlow
Robbie Stephens maintained its Buy rating on CheckPoint
An earnings warning from Intershop
Ariba
Cisco Systems
Terra Lycos
Intermedia Communications
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
Volume, the number of new lows and market internals are much improved on this retest of the Nasdaq's 1990 logarithmic trendline at 2300 (first chart), all positives. However, the new closing low i fell 49 to 311, and the Nasdaq declined 178 to 2291, both new closing lows. The S&P 500 declined 37 to 1283, and the Dow lost 140 to 10,646. Volume rose to 1.1 billion shares on the NYSE, but declined to 1.93 billion on the Nasdaq. Decliners led 17 to 13 on the NYSE and 23 to 16 on the Nasdaq. The National Association of Purchasing Management survey fell to its lowest reading since the last recession a decade ago, giving hope that the Federal Reserve will soon cut rates, but inflation pressures were higher than expected. The big economic report for the week will be Friday's employment report, and some observers think it could be weak enough to prompt an intermeeting rate cut from the Federal Reserve. 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.
again led the parade lower, falling 3 1/2 to a two-year low of 14 7/16, on downgrades from Merrill Lynch and Robertson Stephens.
, down 3 1/4 to 13 13/16, Netegrity
, off 13 11/16 to 40 11/16, Quest Software
, down 4 9/16 to 23 1/2, EMC
, off 12 3/16 to 54 5/16, Certicom
, down 3 3/4 to 16 5/8, Internet Security
, down 13 1/4 to 65 3/16, NetIQ
, off 22 3/8 to 65, Network Appliance
, down 12 5/8 to 51 9/16, Network Engines
, down 1 29/32 to 2 9/32, Verisign
, down 12 1/8 to 62 1/16, and Veritas
, off 21 1/2 to 66.
, which fell anyway, off 23 1/16 to 110 1/2.
, off 10 5/16 to 4 13/16, sent e-CRM software stocks lower. Art Technology
fell 7 5/16 to 23 1/4, and BroadVision
lost 2 3/16 to 9 5/8.
fell 11 5/8 to 42, and Commerce One
dropped 6 1/16 to 19 1/4.
fell 5 1/8 to 33 1/8 on concern that the company could warn. The company makes an important presentation Jan. 10.
was one of the few bright spots, slipping only 1/4 to 10 5/16 on strong holiday sales.
rose 1 3/32 to 8 9/32 on optimism that the company's merger with Worldcom
will go through. Digex
, which is majority-owned by ICIX and whose shareholders had hope to split up the merger to get a better price for Digex, fell 3/4 to 21 3/4.