Blue Chips Gain, Techs Fall

Blue chips investors ignored a weaker than expected manufacturing report on Wednesday and focused instead on strong auto sales, but tech stocks ended the day down.

The ISDEX fell 3 to 128, and the Nasdaq fell 10 to 1677. The S&P 500 rose 9 to 1086, and the Dow gained 113 to 10,059. Volume declined to 1.45 billion shares on the NYSE, but rose to 2.18 billion on the Nasdaq. Advancers led 19 to 12 on the NYSE, but decliners led 18 to 16 on the Nasdaq.

After the close, missed revenue estimates.

During the day, Overture plunged 35% on news that AOL has opted to go with Google instead of renewing Overture’s services.

Sun Microsystems fell 15% on the retirement of COO Ed Zander, the latest high-profile departure at the company.

Cisco fell after announcing two acquisitions and on concern that it could be hurt by WorldCom’s meltdown.

Hewlett-Packard slipped and Compaq rose after their merger was upheld by a judge.

S1 fell 21% after warning, and Peregrine plunged 49% after delaying its earnings release.

Sycamore was unchanged despite warning. Adobe and Dell edged higher after reaffirming guidance, but Pegasus fell despite beating estimates.

Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the story link at the top of the newsletter.

A nice bounce today for the broad market, but it’s just that until the S&P 500 and 100 (first and second charts below) can take out the critical resistance levels of 1100 and 547, respectively. 1074, 1064 and 1054 are support on the S&P. The Nasdaq (third chart) continues to struggle between 1696 resistance and 1640 support. 1725-1734 is the next resistance above 1696, and 1619-1627 is potential support below 1640. The Dow (fourth chart) would look awfully good on a strong break of 10,100 tomorrow. 10,000 is first support, and then 9928 and 9800. The U.S. dollar (fifth chart) is threatening to break a multi-year uptrend. 110 could provide support, but 103-104 is beginning to look likely for the greenback if it can’t bounce soon.





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