Tech Stocks Shake Off Earnings Worries

A revenue warning from Oracle failed to shake tech investors on Monday, as they sent the Nasdaq more than 1% higher.

The ISDEX rose 2 to 190, and the Nasdaq climbed 25 to 1982. The S&P 500 rose 1 to 1191, and the Dow was unchanged at 10,415. Volume fell to 842 million shares on the NYSE, and 1.1 billion on the Nasdaq. Advancers led 16 to 14 on the NYSE, and 20 to 16 on the Nasdaq. For earnings reports, visit our earnings calendar at and reported earnings at For after hours quotes and news, visit our after hours trading site at

Oracle rose .46 to 15.62 despite comments CFO Jeff Henley made to Bloomberg that were interpreted as a revenue warning.

The forgiving mood spread to other stocks. Sun Microsystems added .11 to 16.33 even though Merrill Lynch cut estimates on the stock.

Goldman Sachs became the latest big firm to upgrade the chip sector, adding Intel and Broadcom to its recommended list.

Applied Materials , up .25 to 44.73, NVIDIA , up 3.61 to 88.25, BEA Systems , off .38 to 18.11, and Network Appliance , off .03 to 13.88, all report earnings tomorrow night.

RealNetworks rose .35 to 7.02 on an alliance with Texas Instruments .

Cheap Tickets , up 4.48 to 16.33, will be acquired by Cendant for 16.50 a share.

eBay , off .43 to 60.66, once again held critical 60 support.

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:

The Nasdaq (first chart) has formed an interesting pattern the last couple of trading days. The index is either forming an inverted head-and-shoulders bottom, with minimum upside potential to 2030, or the index is forming a bearish wedge or pennant, the converging uptrend lines. So which is it? Based on the sharply lower volume on the breakout and lack of follow-through, we’d have to go with the bearish rising wedge, which points to our downside target of 1870 that we’ve been waiting for for what seems like forever. A move above 2000 would look good, particularly in the first few hours of trading tomorrow, and a move below 1967 would be a negative. In the daily (second chart), the Nasdaq was stopped at a sharp downtrend line today. The Dow (third chart and fourth charts) was stopped at its broken March uptrend and its May downtrend lines at its high of 10,430 today, not the greatest of signs for the old industrials, and GE had yet another down day. A move above 10,500 on the Dow would be a big plus. The S&P 500 (fifth chart) ran into two downtrend lines today. A move above 1200 on the S&P would be a good sign, and 1165-1175 is critical support.

Special report: For a free introduction to technical chart patterns and an overview of last year’s action in the stock market, visit,1785,2571_500051,00.html.

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