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Technology stocks trudged through a listless session, failing to grasp the bubbly excitement generated down in Tennessee as

Al Gore

named Connecticut Sen.

Joseph Lieberman

as his running mate.



ended the day down 14.44, or 0.4%, at 3848.55, though it traded in a moribund range between 3839.58 and 3893.05. Internet Sector

index closed down 2.89, or 0.4%, at 760.85. The tech sector had rallied the past few sessions, and traders may have been looking to take some profits in the absence of any catalyst.

There also may have been some hesitation as the Nasdaq approached its 200-day moving average, a widely followed barometer for technical analysts and fundamental analysts alike. The Nasdaq sold off after slipping below the 200-day moving average July 27, and a close above it likely would have encouraged traders to remain optimistic on the market. The 200-day moving average was around the 3910 level today.

Focus was on

Cisco Systems

(CSCO) - Get Free Report

, which was scheduled to report earnings after the close. Cisco closed down 3/4, or 1.1%, at 65 1/2, then met whisper-number estimates with earnings of 16 cents a share vs. the

First Call/Thomson Financial

estimate of 15 cents.

There still were some standouts on a day when most stocks showed only marginal movement.

Copper Mountain Networks


closed up 8 11/64, or 11.6%, at 78 27/64. The stock benefited from news that

Verizon Communications

(VZ) - Get Free Report

would merge its digital subscriber line operations with

NorthPoint Communications


in a deal valued at $800 million. Also,

Rhythms NetConnections


, which provides broadband communications, closed up 1 3/4, or 14%, at 14.



closed down 3 13/16, or 10%, at 34 13/16. Losses came after DoubleClick restructured a services agreement with

Alta Vista

. DoubleClick extended the ad-serving portion of that contract until the end of 2004, in exchange for releasing Alta Vista from the ad-sales side of the contract at the end of 2000, one year early.

Analysts at

Salomon Smith Barney

reduced 2001 GAAP (Generally Accepted Accounting Principles) revenue estimates $20 million to $25 million on the news. But they said that by keeping the ad-serving portion, DoubleClick will retain the highest-margin (75% gross margin) portion of its Alta Vista contract for an extra three years, at the expense of one year of less-profitable (30% gross margin) media revenue from Alta Vista. They claimed the trade-off was "favorable and compelling."

Finally, shares of

America Online Latin America


closed up 7/16, or 5.5%, at 8 7/16, just above their IPO price of 8.

1:56 p.m.: Infrastructure Plays on the Move


Nasdaq Composite Index was falling recently, in a mostly nondescript session.

The Nasdaq was off 21.7 to 3841.2 in recent trading. It has moved in a range between 3840.25 and 3893.05. Internet Sector

index was off 2.56, or 0.34%, to 760.96. Strength in the


was again providing some underlying support. It was lately up 47 to 10,915.

Some infrastructure plays appeared to be benefiting from news that

Verizon Communications

(VZ) - Get Free Report

would merge its digital subscriber-line operations with

NorthPoint Communications


in a deal valued at $800 million. Under that deal, Verizon will control 55% of Northpoint, which will remain publicly traded.

Copper Mountain Networks


, which supplies DSL products to telecommunications services providers, was up 10.7%. Also,

Rhythms NetConnections


, which provides broadband communications, was up 5.6%.



was up 4.5%. The business-to-business software firm was written up favorably by

Credit Suisse First Boston

analyst Chris Vroom. In a piece titled "Ariba knocking the cover off the ball," Vroom writes that current momentum in the company "remains outstanding," with a balance sheet backlog in excess of $250 million."

Expect more excitement tomorrow.

Cisco Systems

(CSCO) - Get Free Report

will report its earnings after the close of trading today. It was down 1.3% in recent trading. Cisco is expected to report earnings of 15 cents a share, though it typically beats estimates by 1 cent.

Shares of

America Online Latin America


were holding above their IPO price of 8. It was up 9.8%, though it had traded as low as 7 3/4. America Online Latin America a joint venture between

America Online


and Venezula's

Cisneros Group


10:46 a.m.: Tech Moving Higher Following Yesterday's Nice Rally

Technology stocks were looking to extend their rally for the fourth straight session, though the sector's performance early on was somewhat lethargic.



was up 26 to 3889 in recent trading. Internet Sector

index was up 8 to 772. The market actually was benefiting from a friendly

productivity and unit labor costs

report, which were non-inflationary.

The week's first big event,


(CSCO) - Get Free Report

earnings report, will take place after the close today. Cisco was up 0.7% early on.

Over at

Real Money

, our own raging bull, Jim Cramer, actually listed some reasons why he was not going full steam ahead on the buy side. He lists seven reasons, but we pilfered only five so if you want to see the other two you're going to have to pay.

1) The Fed might be done, but it left a lot of damage. Many companies may not make their estimates this quarter because the economy has slowed.

2) Wireless has slowed and that was, along with optical, the principal leader in this market.

3) Optical is overvalued. Oh come on, face it, it is true.


(CORV) - Get Free Report

is worth more than

General Motors

(GM) - Get Free Report

as Jeff Berkowitz points out to me. (He's long Corvis.)

4) We don't have a lot of solid leadership taking the place of tech.

5) Too much supply. Way too many underwritings.

"I am sure there are others. But these are the things that make me nervous. I have spent a lot of time trying to defuse the bear case internally lately, but I am conscious that these points are getting worse, not better. So they are duly noted as reasons not to press the pedal to the floor."

Among stocks in the news,

Siebel Systems


, a supplier of eBusiness applications software, was up 5.6%. The company made a couple of announcements, including the acquisition of privately-held

OnLink Technologies

, which provides e-commerce customization software. Siebel also said it would split its stock 2-for-1, for shareholders on record Aug. 18. It will be payable on Sep. 8.

America Online


was up 0.8%.

America Online Latin America


, a joint venture between AOL and Venezula's

Cisneros Group

, will begin trading today. The 25 million-share IPO was priced at $8 a share, the bottom of its revised price range.

StarMedia Networks

(STRM) - Get Free Report

, which is already public, was down 6.2% despite besting earnings estimates.

StarMedia reported a 67-cent loss for its second quarter, slightly better than the 70-cent loss estimate. CEO Fernando Espuelas said his company could break even before analysts' estimates of the fourth quarter of 2002.

Commerce One


was up 7.8%. The company was benefiting from news that


, a procurement exchange launched by 14 energy and petrochemical companies, had completed regulatory procedures required by the

Federal Trade Commission

and the

European Union's Mergers Taskforce

. Technology from Commerce One will power the exchange. Trade-Ranger will begin conducting transactions in September 2000.

In addition, Commerce One and


(BVSN) - Get Free Report

said today that the companies will integrate the BroadVision procurement application with Commerce One's Under the agreement, BroadVision will offer access to to customers of its procurement product, and the two companies will engage in joint marketing activities to promote the combined BroadVision/Commerce One solution.

Lastly, one of the market's most volatile stocks,


(INFY) - Get Free Report

, was flying 17.1% in early action on a rumor that a large U.S. fund was buying up the shares.