The stock market’s rebound from Friday morning’s steep sell-off ran into its first resistance on Monday, as unconfirmed reports that Iraq had hit a U.S. or British warplane took the wind out of an early rally.
The ISDEX rose 5 to 810, and the Nasdaq gained 22 3825. The S&P 500 gained half a point to 1449, but the Dow slipped 17 to 10,830. Volume declined to 445 million shares on the NYSE and 750 million on the Nasdaq. Decliners led 13 to 12 on the NYSE, but advancers led 19 to 16 on the Nasdaq. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our new after hours trading site.
NBC Internet soared 1 5/8 to 7 13/16 after unveiling a new strategy based on customized versions of the new NBCi.com portal to be distributed via new free Internet access services launched by retailers and traditional publishers, among others. Goldman Sachs made bullish comments on the company.
@Plan rose 1 1/2 to 8 3/4 after announcing that it will be acquired by DoubleClick
, off 1/8 to 37 3/8, for about $9.25 a share.
net.Genesis soared 2 3/16 to 7 7/8 on a Chase H&Q Strong Buy and $22 price target.
Stamps.com fell 1 to 4 1/2 on a Goldman Sachs downgrade to Outperform from Trading Buy. Goldman expects the company’s revenues to disappoint.
WebMD gained 11/32 to 12 15/32 after Merrill Lynch initiated coverage with a near-term Neutral, long-term Buy rating.
Broadcom added 10 to 258 3/4 on a Banc of America Strong Buy rating and $400 price target.
BroadVision added 1/16 to 31 3/8 after trading as high as 32 3/4 on news of an alliance with Compaq
.
Ciena gained 11 5/16 to a new high of 132 1/16 on a sizeable deal with Korea Telecom
.
Palm , which reports earnings tonight, rose 15/16 to 52 3/4 on news that the company is working with Motorola
to develop a wireless “smart phone” that would combine wireless Internet, phone and personal organizer capabilities.
Copper Mountain rose 1 1/4 to 47 7/16 on a Kaufman Brothers Strong Buy rating.
Ventro slipped 3/4 to 12 11/16, down from a high of 15, as investors tried to make sense of a report that the B2B company has hired M&A company Broadview to find a merger partner.
Some technical comments on the market: Not an encouraging start to the Nasdaq’s rally. The index began to weaken around the 38% retracement level (3859) of the 4259-3614 decline. That’s not a good sign, given that the index turned back last week at the 38% retracement level of the 4259-3702 decline at 3913. But the more troubling aspect of the Nasdaq’s action today is that it turned around right at its old broken uptrend line from May, action that serves to reinforce the broken uptrend. A move above 3913 would give the Nasdaq a higher high and place the index back above the broken trendline. To the downside, 3700, the old October 1998 trendline, is the first strong support. Critical support is the August bottom of 3521.
The S&P 500 turned back just below 1460 resistance and remains below its October 1998 trendline. A move above 1460 would be the first sign the index has room to run. To the downside, we’re going to raise the critical support level on the S&P 500 to 1420, where it turned back last week. The would be on a line with the March (1340) and April (1361) bottoms. The Dow is back above its old bearish diamond pattern, the upper boundary of which sits at about 10,825. If the Dow can clear
10,900, the old economy stocks have room to run. Critical support is 10,500, the October 1998 trendline. The ISDEX is back above 800 and could have room to the 50% retracement level at 850 if it can stay there. First support is 787-800, and then the 750-760 area. Critical support is the May uptrend line at about 730.
