Fiber-optic communications manufacturer

JDS Uniphase

(symbol)

was coming in loud and clear in early morning action. In preopen trading on

Instinet

, JDSU was up to 129 from Wednesday's closing price of 106 3/4. Last night

Standard & Poor's

announced that it will add the fiber-optic component maker to the

S&P 500 after the close on July 26. JDSU will replace

Rite Aid

(RAD) - Get Report

, the embattled drugstore chain. For more on JDSU' addition to the S&P, take a look at

TSC's

earlier

report.

The

S&P 500 futures on

Globex

lately were up 1.4 to 1501.7, about seven points above

fair value as calculated by

Prudential Securities

, and indicating some positive sentiment for the open. The thinly traded

Nasdaq 100

futures were up 32.5 to 3946, about 12 points above fair value as calculated by

TheStreet.com

, and showing some upward pressure for the Nasdaq's opening.

Market watchers are eagerly awaiting

Federal Reserve

Chairman

Alan Greenspan's

testimony shortly after the opening bell, before the

Senate Banking Committee

on the economy and monetary policy. The appearance, casually known as

Humphrey-Hawkins, is traditionally among the most important speeches given by the Fed chairman. Wall Street will hold its breath for insight as to whether the

Federal Open Market Committee will raise the

fed funds rate for a seventh time next month.

Also active this morning is

Lucent

(LU)

. The telecommunications company posted third-quarter earnings of 30 cents a share, beating analysts' estimates by a penny. However, Lucent scaled back growth forecasts for its fourth quarter. After edging up a bit on Instinet, the company was recently trading slightly lower, with about 35,000 shares changing hands.

Last night,

IBM

(IBM) - Get Report

reported second-quarter earnings of $1.06, beating the 23-analyst estimate of $1.00 a share, and up from the year-ago earnings of 91 cents. IBM's chairman and CEO Louis Gerstner said in a press release the results are "in line" with the company's expectations. In early trading on Instinet, IBM edged up to 108 7/16 from its 108 34/ close, with volume at 10,000.

He said the company has had three quarters of slow revenue growth, attributed to a combination of the Y2K slowdown and an effort to improve IBM's business portfolio. Such product areas as Web management software, e-business consulting, Web hosting, systems integration and wireless chips, he added, experienced "explosive" growth in the quarter.

IBM's earnings were highlighted in a

story from

TheStreet.com/NYTimes.com's

joint newsroom.

After midsession trading, all major European indices were ahead. Germany's Xetra Dax was higher 0.49%. France's

CAC 40

was ahead 0.82%, while the U.K.'s

FTSE 100

was up 0.15% (see today's

European Midday Update for more). Japan's markets were closed Thursday, while Hong Kong's

Hang Seng

gained 0.27% (see today's

Asian Update for more).

Wednesday's After-Hours Trading

By Angela Privin
Staff Reporter

Tonight's greener roster of most-traded

Island

ECN stocks marks a reversal from last night's bloodbath.

There were more treats and less tricks in the midst of earnings season. And tomorrow might be an even happier day as the direction of futures -- especially the

Nasdaq 100's

September contract -- suggests that the past few days' troubles may finally change course.

One of the names that could prove to be a big help for the Nasdaq tomorrow,

JDS Uniphase

(JDSU)

, was popping 17.875, or 16%, to 124 after

Standard & Poor's

announced it will bump embattled

Rite Aid

(RAD) - Get Report

from its closely watched

S&P 500 big-cap index to make room for the fiber-optic company. The change will take place after trading next Wednesday.

TSC's

Justin Lahart

wrote about the

move this evening.

Good news for JDS Uniphase meant good news for optical-network-component maker

SDL

(SDLI)

after JDS agreed to buy SDL on July 11 for $41 billion. The San Jose, Calif.-based company hit a new 52-week high tonight after jumping 50.375 to 410 on 300,000

Instinet

shares.

It is not easy being popular but it

can

be pretty lucrative.

VoiceStream

(VSTR)

is the latest bait in the sport of fishing for cell phone companies. Reports suggest that

Deutsche Telekom

(DT) - Get Report

has made a bid to acquire Washington-based VoiceStream, propelling its stock into nosebleed heights, up 23, or 15.75%, to 169.

TheStreet.com/NYTimes.com's

joint newsroom wrote about the

possible merger in a story this evening.

Like the only child of demanding parents,

Qualcomm

(QCOM) - Get Report

was feeling the pressure to please. After losing two-thirds of its value since its New Year's 4-for-1 stock split and Jan. 3 high of 179 5/16 on the uncertain fate of its CDMA wireless technology, another disappointment could prove brutal for the wireless giant.

In front of this evening's earnings release, Qualcomm fell 3% in the day session but rallied more than a point by night. That quickly changed when Super Q met per-share consensus estimates of 27 cents but disappointed on revenue, which was up a lackluster 11%, to $714 million. Analysts expected sales closer to $750 million. The shares fell 1.89, or 3%, to 61.11.

IBM

(IBM) - Get Report

beat analysts' estimates of $1 per share by 6 cents but said its revenue declined by 1%. But late-night lurkers bid the company up 5.25, or 5%, to 108.75 on 400,000 Instinet shares after the company said it could reach double-digit revenue growth by the end of the year.

Extreme Networks

(EXTR) - Get Report

graduated into the land of pocket change this evening. It reported a profit of a penny, when analysts expected a loss of 5 cents. On the news, the stock rose 12, or 10%, to 128.

Revenue totaled $92.4 million, up 142% from last year's $38.1 million. The company also announced a 2-for-1 stock split and the expansion of its executive team.

Check Point Software

(CHKP) - Get Report

was sailing 7.75, or 3.5%, to 232.625 after checked in with second-quarter net income of $43.7 million or 50 cents per share vs. 27 cents last year. Analysts were calling for a profit of 42 cents. The company specializes in Internet security technology.

ScanDisk

(SNDK)

makes flash-memory storage products, which is not the same as flash-back memories. Tonight, the California-based company beat analyst consensus estimates by 11 cents, posting a party-inducing profit of 33 cents for the second quarter and jumping 8, or 13%, to 68.

Exodus Communications

(EXDS)

reported a smaller-than-expected loss and sharp revenue growth based on its Internet hosting and network management for large businesses.

The company's shares hopped 3.4375 to 54.25.

Software group

Citrix System's

(CTXS) - Get Report

announcement that earnings fell by nearly a third was met calmly after last month's warning. Earnings were 10 cents a share, which met analysts' reduced estimates after the company lowered its guidance. It fell 1.75 to 20.375.

This information is provided by Instinet, a wholly owned subsidiary of Reuters (RTRSY) . For further information, please contact Instinet at www.instinet.com.

Island ECN, owned by Datek Online, offers trading, mainly in Nasdaq-listed stocks, from 7 a.m. to 8 p.m. EDT.

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.