Cisco slipped after the bell after matching earnings estimates and issuing a revenue warning. Stocks treaded water during the day ahead of Cisco’s earnings report.
The ISDEX http://www.wsrn.com/apps/ISDEX/ lost 1 to 205, and the Nasdaq declined 6 to 2027. The S&P 500 added 3 to 1204, and the Dow climbed 57 to 10,458. Volume rose to 979 million shares on the NYSE, and 1.3 billion on the Nasdaq. Advancers led 17 to 13 on the NYSE, but decliners led 19 to 17 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.
After the close, Cisco met estimates with 2-cent pro forma earnings. But revenues came in at the low end of estimates, and the company lowered forward guidance. Also after the bell, Emulex
fell on an earnings warning. TMP Worldwide
rose after topping estimates.
During the day, news that second quarter productivity was much stronger than expected provided some support for the market.
Semiconductor stocks were weak on downgrades from CS First Boston and DB Alex. Brown. Novellus fell 2.48 to 49.80, and Applied Materials
lost 1.93 to 46.80.
eBay rose .54 to 64.04 on speculation that the stock could be added to the S&P 500.
DoubleClick slipped .58 to 10.45 on news that CFO Stephen Collins will depart.
Ciena climbed .15 to 34.07 on positive comments from Bear Stearns. But ONI Systems
lost .76 to 21 on a Neutral rating from Bear Stearns.
INT Media Group , publisher of this Web site, climbed .18 to 3.75 after matching estimates with an 11-cent pro forma loss.
Some technical comments on the market: Note: We include 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 lack of volume and action in the market is almost spooky. Not much of a technical comment, just an observation. In the final stages of a bear market, a lot of investors just give up and walk away. We’re most likely not there yet, but the action in the market the last couple of days has been a marked change from the speculation that was still in the market even last week. We’ll start with the Philadelphia Semiconductor Index, which usually leads the market. The index gapped below its 200-day moving average today, but found support at its 50-day average (first chart). Those two gaps down off the top do not look promising. The Nasdaq (second chart) didn’t even make an attempt at its downtrend line today. That line should be around 2050 for tomorrow, and 2028 is first resistance. 2000 is likely the next strong support. The Nasdaq 100 (third chart) barely held its downtrend line breakout again today. The S&P 500 (fourth chart) managed to recover after closing below its downtrend line yesterday. 1200 is key support, and 1225 is critical resistance. The Dow (fifth chart) managed to get back in the middle of the 10,430-10,475 pivot zone. A break of the 10,300 level would just about do in the old industrials, and 10,600 is critical resistance. Tomorrow is the last day of an important cycle turn window (yesterday through tomorrow); not the best action we’d like to see in such an important window. It could be a tough couple of months for the market if buyers don’t show up soon.
Special report: For a free introduction to technical chart patterns and an overview of last year’s action in the stock market, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.
