Technology and Internet stocks rebounded from steep losses on Monday morning.
gained 14 to 689 after trading as low as 642, and the Nasdaq fell 49 to 3312, about 80 points off its low. The S&P 500 dropped 10 to 1398, and the Dow declined 36 to 10,559. Volume dropped sharply due to Columbus Day and Yom Kippur, to 320 million shares on the NYSE and 605 million on the Nasdaq. Decliners led by 14 to 10 on the NYSE and 25 to 9 on the Nasdaq. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our after hours trading site.
added 1 1/16 to 82 5/16 after trading as low as 75 5/16. The company, which has sold off on earnings concerns, will announce results tomorrow.
dropped 2 1/16 to 29 1/16, but up from a new 52-week low of 27 3/8, after CEO Jeff Bezos said the company will continue to diversify. Technical note: A nice recovery from a new 52-week low. As long as the stock doesn’t close below its previous low of 27 7/8, the stock is technically okay.
surged 3 7/16 to 21 11/16 on an alliance with i2
, which rose 5 1/16 to 166 3/16. Ariba
recovered 6 3/4 to 120 1/2, and Commerce One
added 3 3/16 to 63 15/16. VerticalNet
gained 2 1/8 to 23 7/8 on positive comments from Lehman Brothers and Prudential Securities.
stormed ahead 6 7/16 to 42 5/8 on a Thomas Weisel Strong Buy rating following the stock’s 60% decline.
gained 1 to 7 7/8 on a CS First Boston Buy rating and $30 price target.
plummeted 1 5/16 to 11/16 after the company’s auditors issued a statement questioning the company’s ability to remain a “going concern.”
recovered from the abyss, surging 7 1/2 to 98 1/2 after trading as low as 84 3/8. As we said last week, the stock may be forming a descending triangle, similar to one that Priceline broke down out of at 32. A close below 87 would be a big negative for Inktomi.
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The Nasdaq found support today at its October 1999 trendline and recovered nicely. Tech and Net stocks are technically very oversold and due to bounce soon. As we’ve said many times, more bear markets end in October than begin in this month, so let’s hope earnings support a sustainable recovery here. To the upside, we want to see the Nasdaq get back above 3450, a small downtrend within a downtrend, then 3521, its previous bottom, and then 3600, its main downtrend line. Believe it or not, that downtrend chart is actually a positive: bear markets tend to form clear downtrend channels only toward the end. Earlier “panic” phases, like the April and May sell-offs, do not form parallel trendlines. So that’s more evidence that we could be forming a bottom of some significance here. Of course, it doesn’t mean that we can’t keep going lower if buyers don’t find a reason to come in soon.
e Dow found support at its April trendline on Friday (the lower black line; note that the index could either be forming a head-and-shoulders top or an ascending triangle here, hence the importance of holding that April trendline at 10,500). To the upside, the Dow needs to take out its downtrend line at about 10,650. The S&P 500 needs to take out its downtrend line at 1415, but could have downside to 1380, based on the 40-point rectangle the index broke at 1420. The ISDEX broke 650 support before recovering nicely; below that, next support is 600, and then the May low of 560. To the upside is 700 resistance, and then the 735 level.