Juniper Networks surged more than 20% after the close on Thursday after beating estimates, capping another day of strong gains for stocks.
The ISDEX http://www.wsrn.com/apps/ISDEX/ surged 11 to 143, and the Nasdaq soared 75 to 1701. The S&P 500 gained 16 to 1097, and the Dow climbed 169 to 9410. Volume rose to 1.67 billion shares on the NYSE, and 2.47 billion on the Nasdaq. Advancers led 19 to 11 on the NYSE, and 24 to 11 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, Juniper
soared more than 20% from the close after beating revenue and earnings estimates. The entire sector traded higher after hours, including Ciena
, JDS Uniphase
and Extreme Networks
Also after the close, DoubleClick
met estimates, and RSA
Also, the FBI warned that there could be more terrorist attacks against U.S. targets in the next several days.
During the day, chip stocks led the way higher on a bullish call from Morgan Stanley. Intel
rose 2.04 to 25.10 and Broadcom
surged 4.20 to 30.90.
rose 1.89 to 12.79 after matching estimates and guiding forward estimates lower. E*Trade
climbed 1.19 to 7.85 after beating estimates and raising guidance. McAfee
, up 4.55 to 21, and Silicon Storage
, up 2.25 to 8.53, also rose on earnings news.
soared 5.21 to 24.23 after the company said it expects to meet revenue estimates.
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 Nasdaq’s bullish engulfing pattern yesterday worked like a charm, and the index formed an island reversal today (first chart), gapping though its September 10-17 gap down after the terrorist attacks. The index could be headed to 1800-1900, based on that pattern. However, a speculative edge returned to the market today at the expense of the old economy stocks; the divergence in the internals between the NYSE and the Nasdaq was striking, and the bank stocks look particularly weak here. That level of speculation has tended to mark short-term tops in the past, and today through early next week is a pretty substantial cycle turn window, with the market one more up day from becoming clearly overbought. A downward bias next week into the October 22 turn appears to be the most likely scenario. The Nasdaq has an upper trendline around 1720-1730 in the morning that is likely to provide resistance. The 1641-1649 area is now critical support. The Dow and S&P did some damage to their broken bearish rising wedges today, another bullish sign; we’ll now redraw those trendlines to make critical support 9150-9200 on the Dow, and 1075-1080 on the S&P. Click on those links to see those charts. The S&P is now back to its pre-attack September 10 level (third chart), and the Dow entered its September 17 gap today, which would fill at 9605.
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.