Stocks rose Monday on light volume, recovering some ground after last week’s sharp sell-off.
The ISDEX http://www.wsrn.com/apps/ISDEX/ rose 1 to 220, and the Nasdaq climbed 22 to 2026. The S&P 500 added 8 to 1198, and the Dow rebounded 46 to 10,299. Volume was light at 1 billion shares on the NYSE, and 1.4 billion on the Nasdaq. Advancers led 15 to 14 on the NYSE, and 20 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, Corning
fell on an earnings warning and comments that telecom equipment spending could be 12-18 months from recovering. But Newport
rose after only modestly lowering its full-year outlook and reaffirming its current quarter.
During the day, Microsoft
broke 66 support, down .40 to 65.66, after Salomon Smith Barney downgraded the stock and eBay
based on technical weakness. eBay lost .76 to 64.48.
lost .50 to 18.50 on news that Turkey’s Telsim Mobil has failed to make payment on $240 million in financing provided by Nokia. Nokia has $720 million in exposure to the firm. Qualcomm
, up 3.51 to 61.69, continued to gain ground on news of a 3G alliance with Nokia.
, Sun Microsystems
rose on analyst upgrades.
was halted at 6 cents a share after announcing it will file for Chapter 11 bankruptcy protection and wind down operations.
Henry Blodget of Merrill Lynch took a break from his new career as a Microsoft analyst to upgrade Priceline.com
and downgrade Homestore.com
fell 3.02 to 39.26 after making a bid for AT&T’s broadband assets.
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Not much of a bounce today on the indexes. The Dow, Nasdaq and S&P 500 (first three charts below) barely made a dent in the last two days of selling, and volume was very light. We’ll see if there’s any upside follow-through tomorrow. We’ll set the top of Friday’s ugly black candlesticks as key resistance, at 2060 on the Nasdaq, 1219 on the S&P (although the 1203-1207 level could put up quite a fight), and 10,476 on the Dow. The indexes still need a couple more days of downside to get to short-term oversold readings; a move below 2000 on the Nasdaq, 1188 on the S&P 500, and 10,220 on the Dow would be a sign that that move is here. Critical support is 1183 on the S&P 500, the top of the index’s first wave up off the March low; 1941 on the Nasdaq, a big breakout gap from mid-April; and 10,000 on the Dow. Below those levels a retest of the lows appears likely. A look at the bigger picture shows the Nasdaq comfortably above its broken September downtrend line, but the S&P 500 and Nasdaq 100 back below their September downtrend lines (charts four through six); not a pretty picture for the market’s generals.
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