Warnings from WorldCom and Ericsson dragged stocks lower on Monday.
The ISDEX http://www.wsrn.com/apps/ISDEX/ fell 4 to 142, and the Nasdaq lost 38 to 1758. The S&P 500 fell 17 to 1107, and the Dow dropped 120 to 10,136. Volume declined to 1.17 billion shares on the NYSE, but rose to 1.7 billion on the Nasdaq. Decliners led 19 to 11 on the NYSE, and 23 to 12 on the Nasdaq.
After the close, Neoforma
, Creative Tech
, JDA Software
and Silicon Labs
beat estimates. EarthLink
missed and warned, and Corning
came in light on revenues.
During the day, WorldCom
plunged on earnings warnings. Nokia
fell to its lowest level since early October.
fell 8% on worries ahead of Wednesday’s earnings report.
gained 4% on in-line results and an upgrade, and Lexmark
gained 5% on better than expected results and guidance.
slipped after last week’s earnings reports, but Emulex
rose on the day.
Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the internetstockreport.com story link at the top of the newsletter.
The Dow (first chart) remains firmly in a downtrend. 10,250 is the level to beat, 10,050-10,100 is support, and 9950 is strong support. The S&P (second chart) and Nasdaq (third chart) gave up their recent breakouts, a bearish development. The S&P has support at 1098-1103, and then the 1074-1085 level comes into play. To the upside, 1110, 1120, 1125 and 1132 are resistance. The Nasdaq sliced through 1780, 1770 and 1757 support, managing to close above 1757. Support is 1725 and 1696-1715, and resistance is 1770-1780. The S&P 100 (fourth chart) is perched right above critical 546 support; if that goes, downside potential is to 490 or lower, essentially a retest of the September lows for the biggest S&P stocks.
Special report: For a free introduction to technical chart patterns, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.