The early futures action and European trading are boding well for a strong open in the U.S.

The

S&P 500 futures

on

Globex

lately were up 3 to 1375, 6 points above fair value and indicating strength at the open. The thinly traded

Nasdaq 100

futures were up a more modest 6 to 4307.

The U.K.'s

FTSE 100

was captaining a broad advance among European indices, lately up 2%. Germany's

Xetra Dax

and France's

CAC 40

each were up 0.4%. Overnight in Asia, Japan's

Nikkei 225

jumped to top the 20,000 mark for the first time since Feb. 9, while Hong Kong's

Hang Seng

fell (see today's

Asian Markets Update for more).

In preopen

Instinet

trading,

3Com

(COMS)

was continuing to rise on high hopes for its

Palm

(PALM)

IPO, lately up 2 3/4 to 100 3/4. Elsewhere,

CMGI

(CMGI)

was off 9/16 to 129 in very light trading.

Last Night's After-Hours Trading

By Eric Gillin
Staff Reporter

CMGI

(CMGI)

must stand for "Creating More Giddy Investors," after rising 2 3/16 to 131 3/4 on 112,000 shares tonight on

Island

ECN. During the day, the Internet investor rose 13 3/16, or 11.3%, to 129 9/16 after releasing a wide variety of news, from a half billion dollar stock swap to updates on Web investments.

The big news was a $500 million stock swap between CMGI and

Cable & Wireless

(CWP)

. CMGI will issue $500 million in shares to Cable & Wireless in exchange for $500 million in shares of

Pacific Century CyberWorks

.

This swap was the end result of another deal. Earlier today, Cable & Wireless announced that it sold unit

Cable & Wireless HKT

to Pacific Century CyberWorks. From an alliance standpoint this is nothing earth shattering for CMGI, just a continuance of the CMGI-Pacific Century deal that was launched this past fall, when the pair swapped $350 million in stock.

CMGI also announced that

iCast

, an online entertainment company in which CMGI has a majority stake, launched an eponymous Web site and unveiled a beta version of the iCaster, a multimedia player. Elsewhere on the CMGI investment front, Webvertiser

1stUp.com

, which CMGI also has a majority stake in, announced that it helped

Lycos

(LCOS)

launch Lycos Free Internet Access, a free Internet initiative.

During the day, Lycos rose 1 3/8, or 2.4%, to 59 5/8 on the news, which isn't really saying much considering Net names in the

TheStreet.com Internet Sector

index were up 2.5%.

Elsewhere on the postclose large-cap front,

3Com

(COMS)

continued to soar on

last night's news that it upped the price range on the

Palm

(PALM)

public offering. Tomorrow, the Palm offering price will be finalized.

It rose 4 3/4 to 102 3/4 on 207,000 shares, capping a day session gain of 18 15/16, or 24%, to 98.

Like a good gambler,

JDS Uniphase

(JDSU)

refuses to leave the table until the dice get cold. After hitting points all day, gaining 10 7/8, or 4.3%, to 263 7/8, the fiberoptic technology play continued to pass the line, gaining 2 3/4 to 266 5/8 on fewer than 60,000 shares.

SpeedUs.com

(SPDE)

tired out after-hours, dropping 1 17/32 to 19 on 139,000 shares. Still, the Internet broadcaster had plenty of winnings to speak of. It rose 11 7/8, or 136.6%, to 20 9/16 during the day.

Investors laid the smack down on

Galileo Technology

(GALT) - Get Report

after the company warned about its first quarter. Galileo said it would miss analysts' estimates, expecting revenues to range between $19.5 million and $21 million. That's a decline of 15%-20% from the company's fourth-quarter revenues, which was a record $24.3 million.

Analysts expected the company to earn 16 cents a share. Investors obviously expected more, dropping the company 4 to 15 1/8 on 103,000 shares on Island.

Rhythms NetConnections

(RTHM)

also talked earnings (or lack thereof) during the postclose session, releasing its fourth-quarter results. Losses came in at $1.23 a share, much worse than last year's 68-cent loss. The First Call/Thomson Financial estimate called for a $1.34 loss, so investors found a silver lining in a losing effort and sent the company up 1 13/16 to 37 1/8 on 97,000 shares.

The company said revenues increased to $5.5 million vs. last year's $280,000 and that it had 12,500 DSL lines at the close of 1999. That's an increase of 86% vs. Rhythms NetConnections' third quarter.

Did anyone catch the symbol of that company?

Vasomedical

(VASO)

blindsided Island's most-active chart, careening to the top of the list in just 15 minutes of trading before 5:30 p.m. EST. It shot up 4 1/4 to 7 1/8 on 3.5 million shares.

Interest hit a postclose fever pitch after Vasomedical announced additional results of a

Mayo Clinic

study on its trademark technology, enhanced external counterpulsation therapy, EECP for short. The Mayo Clinic found that 20 of the 21 patients who underwent EECP therapy had shown "positive results" while some cases "improved dramatically." In the press release touting the results, a Mayo Clinic spokesman said he was "cautiously optimistic" about the results.

This news from the Mayo Clinic isn't a new thing. It previously released the results of an EECP study in November. In fact, tonight's huge volume and solid gains might have evening denizens feeling deja vu all over again. Vasomedical shot up the charts on Jan. 14, due to

positive earnings news and then

a week later without any news at all.

Tonight's jump covers for a flat, lackluster day session when it inched down 1/32 to 2 29/32.

Investors had SECX on their minds this evening.

More specifically, they had

SED International

(SECX)

dancing in their thoughts. It was unchanged at 3 11/32 1.3 million shares, good enough for the No. 2 spot on Island's most-active list. SED eased as the night wore on, trading gains of more than a point for a break-even finish.

Earlier today, the company announced a distribution agreement with

BellSouth Cellular

, a subsidary of

BellSouth

(BLS)

. Per the terms of the deal, SED will handle BellSouth Cellular's online commerce, warehousing its product, processing orders and sending them to third-party agents and resellers. These services, as provided by SED, will be made available via the Internet and authorized BellSouth agents.

In a press release from earlier today, CEO Mark Diamond said the deal would help SED, a wholesaler of microcomputers and other computer peripherals, expand into other areas of technology sales.

"The prepaid wireless solution from BellSouth will be instrumental in forging relationships with retailers outside of the traditional wireless model and market," Diamond said. "And more importantly, this product offering allows our computer resellers in 360 southeast cities to enter the wireless market with little to no investment while expanding their business."

News of the deal sent SED up 15/16, or 45.5%, to 3 on 1.8 million shares during the day session. That's quite a heavy volume for the company, which has a $21 million market cap. 1999's average daily volume was 43,000.

Island ECN, owned by Datek Online, offers trading, mainly in Nasdaq-listed stocks, from 8 a.m. to 8 p.m. EST.

.

MarketXT, formerly Eclipse Trading, offers after-hours trading to retail clients of Morgan Stanley Dean Witter's (MWD) Morgan Stanley Dean Witter Online, Mellon Bank's (MEL) Dreyfus Brokerage Services and clients of Salomon Smith Barney. It is also available to clients of Mydiscountbroker.com, CyBerCorp and Interactive Brokers. Clients can trade 200 of the most actively traded New York Stock Exchange and Nasdaq Stock Market issues, 4:30 p.m. to 8 p.m. EST Monday through Thursday.

Confused?

TheStreet.com

explains how the rules change when the sun goes down in Investing Basics: Night Owl, a section devoted to after-hours trading.