Intel Not Much Help

Intel rose 3.8% Wednesday on its earnings report, but provided little support for the rest of the market, which was dragged lower by disappointing earnings from Boeing and United Technologies.

The ISDEX slipped less than a point to 149, and the Nasdaq gave back 6 to 1810. The S&P 500 declined 2 to 1126, and the Dow fell 80 to 10,220, weighed down by Boeing and United Tech. Volume rose to 1.37 billion shares on the NYSE, and 1.9 billion on the Nasdaq. Advancers led 16 to 15 on the NYSE, but decliners led 18 to 16 on the Nasdaq.

After the close, IBM rose after meeting lowered estimates but issuing a more optimistic outlook. Apple , AMD , Broadcom , Mercury Computer , SanDisk , PayPal , and Lam Research beat estimates. Digital Lightwave missed earnings estimates, and Siebel and E*Trade missed their revenue numbers. Extreme matched estimates, and Inktomi beat lowered estimates.

During the day, Intel led the chip sector modestly higher after matching estimates and saying it sees no broad economic recovery. Motorola gained 9% on its better than expected report.

Veritas plunged 16% on a warning, weighing on the storage sector.

Terdyne slipped and RF Micro edged higher after beating estimates.

WebEx bolted 14% on its earnings, and Internet Security gained 6%.

Advent , i2 , Kana and Vitesse fell on their reports.

Commerce One and RealNetworks climbed 2% on their quarterly reports.

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.

The Dow (first chart) was the only one of the three major indexes that didn’t breakout yesterday, and it was the weakest again today. 10,300 is the level to beat on that index, and if it can hold 10,220 tomorrow, it may have a fledgling uptrend developing. Got any doubts that this is a small- and mid-cap market? The S&P 500 (second chart) and the Nasdaq (third chart) have broken out, but the big-cap S&P 100 (fourth chart) and Nasdaq 100 (fifth chart) have not. Meanwhile, the S&P Midcap 400 (sixth chart) made yet another new high, but formed a gravestone doji candlestick today, a short-term negative. The S&P has so far been stopped by 1132-1134 resistance, but the Nasdaq won’t hit significant resistance until 1850-1860. The Nasdaq 100, meanwhile, faces tough resistance up till 1435. Critical support for tomorrow is 1793 on the Nasdaq, and 1117 on the S&P.






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