Technology stocks continued to backpedal in follow-through selling from Tuesday's decline.
was down 102.24, or 2.7%, at 3683.21 in early trading, while
TheStreet.com Internet Sector
index was off 1.63, or .19%, at 869.43. An earnings
was contributing to some of the uneasiness in tech. Our house technician,
Gary B. Smith
, took a look at price action in the Nasdaq and provided a detailed analysis of
in an earlier
Among Internet stocks in the news,
was down 3/8, or 0.7%, at 57 3/8. AOL and
entered into a two-year marketing agreement, according to
The Wall Street Journal
. Coke will pay AOL $24 million for access to AOL services, according to the paper, while both companies will contribute $20 million in marketing support.
Online financial stocks were getting hurt for the second straight day, particularly
, which was down 1 7/16, or 4%, at 34 9/16.
put out a note on the company that was not as negative as some may have interpreted it to be.
Chase analyst Gregory Smith wrote that
figures indicated that Knight/Trimark's market share of combined Nasdaq and over-the-counter Bulletin Board stocks fell to 13.8% in April compared to 15.9% in March and 21.9% in February. But Smith wrote that "while OTC activity represents a significant portion of Knight's business, we believe the decline in OTC BB volume was likely offset by abnormally heavy volatility in Nasdaq stocks during April, still creating a very strong month for the company." Smith encourages investors to look at volume numbers that Knight/Trimark releases on the tenth business day of the month rather than rely on the Autex data. Chase Securities has not done underwriting for Knight/Trimark.
was down 9/16, or 13%, at 3 5/8 after missing quarterly estimates. The online music retailer reported a loss of 92 cents a share vs. the 88-cent loss estimate from
First Call/Thomson Financial
was down 5/16, or 2.2%, at 14 1/16 after posting a 47-cent loss vs. the 54-cent loss estimate from First Call.
CDNow unveiled a new operating plan that the company said was designed to trim operating expenses by more than $12 million per quarter and reduce customer acquisition costs by 50%. It also reiterated that it was seeking a merger partner or investor.
was up 7/8, or 41%, at 3. Emusic and
yesterday announced an alliance with
to provide music content to the music guide of
, which is Microsoft's guide to audio and video on the web.