Microsoft beat estimates and raised guidance after the close on Thursday, but investors fretted about a huge increase in stock-based compensation.
Earnings of 34 cents a share beat 30-cent estimates, and revenues of $10.15 billion exceeded $9.74 billion forecasts. Microsoft also raised quarterly and full-year guidance above forecasts, but investors focused instead on the huge expansion in stock-based compensation that shaved 20 cents a share off net income, sending the stock lower after hours.
Also after the close, Scientific Atlanta , KLA-Tencor
, StorageTek
, Vitesse
, Genesis Microchip
, UTStarcom
and Corning
all beat estimates.
During the day, tech stocks again fell victim to profit-taking.
The Nasdaq lost 23 to 2119, the S&P 500 slipped 3 to 1143, and the Dow was down less than a point to 10,623. Volume declined to 1.69 billion shares on the NYSE, and 2.36 billion on the Nasdaq. Advancers led 17-15 on the NYSE, while decliners led 20-11 on the Nasdaq. Downside volume was 59% on the NYSE, and 70% on the Nasdaq. New highs-new lows were 517-1 on the NYSE, and 301-7 on the Nasdaq.
eBay surged 8% to a new all-time high on better than expected results and guidance.
Lucent and Nortel
tumbled on weak capital spending guidance from AT&T
.
Netflix and F5
soared on their results, and Symantec
, Xilinx
, Citrix
, Nokia
, Overland
and Openwave
rose on their reports.
Sandisk , Siebel
, Qualcomm
, Check Point
, Tellabs
and EMC
declined on their reports.
Market Commentary: For our free daily market commentary and technical analysis, please visit the InternetStockReport.com home page at:
http://www.InternetStockReport.com.
