Microsoft rose after hours and eBay declined after both companies guided estimates lower. Stocks were mixed during the day after Wednesday’s steep losses.
The ISDEX http://www.wsrn.com/apps/ISDEX/ rose 2 to 144, and the Nasdaq climbed 6 to 1652. The S&P 500 slipped 8 to 1068, and the Dow lost 69 to 9163. Volume declined to 1.26 billion shares on the NYSE, and 1.79 billion on the Nasdaq. Decliners led by 19 to 11 on the NYSE, and 20 to 15 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, Microsoft rose after topping pro forma estimates by 4 cents with 43-cent earnings, but guiding fourth quarter and full-year earnings lower. eBay
fell after topping estimates, but offering forward guidance that was at or below previous estimates.
Also after the close, Scientific Atlanta and Nortel
beat estimates; Gateway
missed; Applied Micro
and PMC-Sierra
topped estimates; Corning
beat estimates but warned; and Sun
topped estimates.
Also, Inktomi , TriQuint
, and Illuminet
beat estimates; Interwoven
, Advanced Fibre
, and SonicWall
met estimates; and Sycamore
warned.
During the day, the Philadelphia manufacturing index, the first clear read on manufacturing after September 11, showed a much bigger than expected drop.
Check Point rose 2.81 to 31.93 after matching estimates.
TiVo soared .99 to 5.54 on a deal with Sony
.
Among companies that reported after the close Wednesday, Texas Instruments lost 1.91 to 28.00, Apple
rose 1.01 to 18.00, Newport
climbed .31 to 16.60, Symantec
surged 4.81 to 52.58, Mercury Computer
rose 4.78 to 40.78, AMD
lost .21 to 9.50, Siebel
declined .27 to 17.11, Travelocity
rose .16 to 16.21, Handspring
lost .89 to 1.77, Commerce One
fell .48 to 2.41, Broadcom
rose 1.87 to 29.94, WebEx
lost .63 to 27.30, and Extreme
fell 1.42 to 10.78.
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: http://www.afterhourstrading.com/column.html
The Nasdaq (first chart) broke one uptrend line today, but still has another around 1580. First support is 1634, then 1626, then 1614. First resistance is 1675 and then 1700. For the Dow (second chart), first resistance is 9206, then 9271-9309. First support is 9134 and then 9000. On the S&P (third chart), first resistance is 1071-1075 and then 1091. First support is 1064 and then 1052. In the fourth chart, note the intriguing channels that this Nasdaq bear market has created; the recent rally was stopped close to one upper channel line. Finally, as we said this morning, we believe a correction has begun that will retrace at least half the gains off the September 21 lows, but we are also providing 38.2% and 61.8% targets too, which should cover the main Fibonacci scenarios. Further than a 62% retracement, and the correction becomes a trend in its own right. That said, here are some potential downside targets:
Nasdaq: 38.2% – 1614; 50% – 1571; 61.8% – 1527.
Dow: 38.2% – 8944; 50% – 8776; 61.8% – 8607.
S&P: 38.2% – 1045; 50% – 1026; 61.8% – 1007.
We’ll look for a completed corrective structure to occur near those levels.
Special report: For a free introduction to technical chart patterns and an overview of last year’s action in the stock market, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.
