appeared ready to erase early losses with a late-day push only to drop in the final hour of trading in a mostly quiet trading session.
The Nasdaq finished down 63.11, or 1.6%, at 3877.23 after trading as low as 3838. It got as high as 3929 before faltering.
TheStreet.com Internet Sector
index closed down 9.96, or 1.2%, at 833.16. Check out Justin Lahart's in-depth
look at how
entry into the
Standard & Poor's 500
after the close on Friday could stir things up. Broadcom ended the day up 16 3/4, or 8.9%, at 204 3/4.
There was some excitement late in the day when
Salomon Smith Barney
to neutral from buy, due to second quarter "revenue and channel inventory concerns." Compaq finished down 3 1/2, or 12.3%, at 24 15/16.
Elsewhere, there was little news of much consequence.
ended the day down 3 3/8, or 8.4%, at 36 13/16 on news that an online venture backed by six major airlines was forming a similar service for airplane tickets.
will allow users to pick a discount fare for their travel route, which will be different from priceline's "name your own price" approach. However, travelers will not know the name of the airline they are choosing, the route or the time of day they will be traveling.
Also, Internet infrastructure plays remained en fuego.
finished up 7, or 4.4%, at 166 11/16;
Copper Mountain Networks
added 6 3/4, or 8.5%, to 86; and
climbed 11 1/2, or 8.4%, to 147 15/16.
2:06 p.m.: Nasdaq's Choppy Pattern Makes Seasonal Sense
Unable to build on yesterday's rally, the
Dow Jones Industrial Average
lower today. It recently was down 45 to 3895, though that was off the worst levels of the day at 3838.85. The Dow was off about 71 points to 10,457.
Elaine Yager, senior technical analyst and vice president at
Herzog, Heine, Geduld
, said the choppy price action the market has seen of late was not uncommon and is due to the market being in a time of the year when there are a lot of different cross-currents at work.
She attributes much of yesterday's gains to window dressing ahead of the month and quarter end tomorrow. Though, she says, there is really no way to tell whether today's bounce from the lows was a continuation of that buying, particularly since the settlement day for month-end trades was yesterday. She said it is a tough time to be trading-- with the market just coming off an FOMC meeting, in pre-earnings season, ahead of earnings season and during the low summertime volume.
"You trade your way through it, hope you pick the right trade for the day and be select because in the end you might be married to them," she said. "It's a horrible, horrible time."
Yager said that short-covering above 3982 earlier this month took the Nasdaq to overhead objectives and resistance around the 4077 to 4100 area. Because there was not enough fresh buying after the squeeze was completed, the market has stalled and it could create a pullback ahead of second quarter earnings.
What then? More cross-currents. Yager said that after investors figure out whether earnings are good or not, it also will have to decide if a slowing economy is going to decrease corporate bottom lines for the next quarter, or if, in fact, the Fed has achieved the desired "soft landing." Should the soft landing be the case, it sets up some stability for stocks, she said, and "more pronounced sideways action through September."
Yager said that in order to extend the rally beyond 4087, which would be a 50% retracement from the all-time high of 5132 to the May 24 low around 3043, it would need new buyers and rising volumes. If those occur, she looks for an extreme upside to 4400 or 4500. If the market is unable to extend its recent rally, she anticipates backing and filling, with shorts targeting sell stops at the June 13 low of 3695 and an attempt to fill a gap from June 1 to June 2 at 3583.
10:33 a.m.: Market Names priceline's Own Price -- Lower
Follow-through. It's kind of a requisite to mount a sustained rally, but something that has been lacking in the technology sector of late.
After yesterday's no-
Fed-rate-hike celebration, the technology sector was back on the downside today, though buyers had already stepped in after an initial spike lower. In recent trading, the
Nasdaq was down 54, or 1.4%, to 3886.
TheStreet.com Internet Sector
index was off 12, or 1.4%, to 831.
was under attack on a number of fronts.
The Wall Street Journal
reported that priceline's airline ticket business will face competition from an online venture backed by six major airlines. That news helped send the stock down 4 7/16, or 11%, to 35 3/4.
will allow users to pick a discount fare for their travel route, which will be different from priceline's "name your own price" approach. However, travelers will not know the name of the airline they are choosing, the route or the time of day they will be traveling. Airlines included in the new site include
America West Holding's
America West Airlines
. All will have minority stakes in the site.
Texas Pacific Group
has a majority stake in the group.
was reporting that Paul Allen's
had filed with the
Securities Exchange Commission
to sell 1.62 million common shares of priceline. Yesterday, priceline announced plans to provide its services in Europe.
Toys "R" Us
are reportedly teaming to offer free Internet service that will feature Yahoo's content and services, according to
. It will be similar to Yahoo!'s agreement with
. Yahoo! was down 2, or 1.6%, to 121 9/16. Yesterday, Yahoo! agreed to buy privately-held
, an email group communication service, in a stock deal valued at about $432 million.
were bucking the trend, up 2 39/64, or 7%, to 39 3/4 on news of a global ad sales partnership with
. Under the agreement DoubleClick will sell advertising, sponsorships and e-commerce solutions across the
network in 16 countries outside the United States. This expands on DoubleClick's relationship in the U.S., where RealNetworks currently uses DART, DoubleClick's ad targeting and reporting technology. RealNetworks was up 7/16, or 0.9%, to 49 3/8.
were getting hammered, down 2, or 47.8%, to 2 3/16 after the company warned it will miss quarterly estimates. ION, which develops and manufactures software and hardware solutions for Internet security, said revenues will be "significantly lower than anticipated," due in part to a decision by some of the company's customers to delay purchases. The company also announced it is restructuring its worldwide sales organization.
And on a lighter note,
has donated 22 breathalyzers to the Bangalore, India, traffic police. Infosys is a software company that is based in Bangalore. Infosys was down 4% today.