Preopen Trading: Futures Pointing Market Higher in Early Action - TheStreet

After surviving most of this week's important economic releases (as well as the wild enthusiasm of Flag Day), the market is looking to move a little higher this morning.

At 7:15 a.m. EDT, the

S&P 500 September futures contract was unchanged, but was still 5.2 points above

fair value. The

Nasdaq 100

September contract was up 11.3, suggesting some modest tech strength at the opening.

There are still a few numbers on tap for this morning. May

industrial production

,

initial claims for unemployment

for the week ending June 10 and the

Philadelphia Fed index

for June are all slated to hit the Street today.

In important company news this morning,

Lucent

(LU)

signed a letter of intent to become the primary supplier of network infrastructure for

Verizon

, expected to be worth about $1.5 billion to Lucent, according to

Reuters

.

Wednesday's After-Hours Trading

By Angela Privin
Staff Reporter

It may be true that after-hours trading is often the parallel universe to the more venerable day session. Many of the contrarian moves can be explained by bargain-hunting and profit-taking, but tonight's somewhat enigmatic move in one long-distance carrier suggests that a forgiving night crowd is latching onto whatever good news it can find.

IDT

(IDTC)

reported financial results after the bell, but instead of the expected third-quarter profit it reported a loss.

The New Jersey company announced that revenue declined from the previous quarter, though it rose 40% from the same period last year. In the third quarter, excluding special one-time gains, the company lost $4.5 million or 12 cents a share, down from earnings of $2.7 million, or 7 cents a year earlier. Wall Street consensus estimates projected earnings of 8 cents.

The company ended the day session 3.6% lower but was lately up 2 5/8 to 30 7/8 on 38,000

Island

shares. In its conference call, IDT said it expects new business from

AT&T

(T) - Get Report

to boost its revenue in the next quarter; that looks like it could be the spark for the gains.

GraphOn

(GOJO)

has a lot going for it. First a cool ticker symbol and now a deal with

Hewlett-Packard

(HWP)

. H-P licensed one of the company's software products to use for its new service control manager. The news hit the wires at 3 p.m. EDT, and GraphOn's stock shot up in the last hour to settle 9/16, or 8%, higher.

GraphOn develops Web-enabling software and the HP ServiceControl Manager, introduced today, allows people to manage a huge network of HP Unix servers from any Internet-connected Windows PC.

According to the trader chat rooms and

CNBC

, Tokyo Joe sent out an email recommendation on GraphOn, and that moved the stock up 15/16 to 8 1/2 on 530,000 Island shares.

Tokyo Joe, also known as TokyoMex and Joe Park, is really a former lawyer and New York restaurateur named Yun Soo Oh Park. Park built a following as a stock-picking guru on

Silicon Investor

message boards and started his own advisory service in 1998. In January, the

Securities and Exchange Commission

charged Tokyo Joe with "scalping," or encouraging people to buy certain stocks and then selling them as soon as the buying began.

Tonight's big news for little companies will be filtered through

TheStreet.com's

very own technobabble translator.

During the day

Compositech

(CTEK) - Get Report

lost 10% or 1/16 to 9/16 but recovered 1/4 after hours.

The Long Island-based company develops components for circuit boards used by the electronics industry. The company also boasts an innovation in its field, which is too cumbersome to explain even in lay terms. Let's just say the company found a more modern and efficient material to use in the production of its fiber-optic products.

The company most recently released news on June 6, announcing its intent to acquire the

Aeon Group

, a business-to-business e-commerce software firm specializing in rapid network communication.

The firm's CFO, Samuel Gross, said there was no news to justify today's move or tonight's interest, saying only that the most current information was released June 6.

Netgateway

(NGWY)

ended the session 3/32, or 3%, lower, but recouped those loses at night. The company released an unusual press statement just as the session closed.

"When the top car crosses the finish line at the speedway, the victory goes to the driver with the leading edge," read the lead of the release, which went on about the race to get e-commerce companies up to speed.

The strangely cryptic press release mentioned the combined technology of Netgateway's Internet Commerce Center and

Oracle

(ORCL) - Get Report

8i products, which will available to e-business firms. The company statement gave little detail, saying only that the new platform enables e-commerce readiness without a significant up-front investment.

Netgateway gained 3 to 1/8 on 76,000 Island shares.

Don't mess with us.

MicroStrategy

(MSTR) - Get Report

dropped 2 7/16 to 40 on 21,000 Island shares after banning reporters from Monday's shareholders meeting.

More mystery ECN theatre.

According to data from market research firms Dataquest and VLSI Research, for the second year in a row,

Applied Materials

(AMAT) - Get Report

has been ranked the leading industry supplier for a one of its products.

After the good news this morning, the tech company sagged 6.5% lower by day, but regained 1 7/16 by night to 87 1/2 on 58,000 Instinet shares.

Also

JDS Uniphase

(JDSU)

announced today that it will purchase an old Motorola building in Northern California for capacity expansion. It ended the day 3.6% lower, not very strange in light of today's tech sell off, but it just kept on heading south after the bell. It finished 1 15/16 lower on Instinet and fell 1 on Island.

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.