Volume was slim in tonight's extended platforms, and stocks straddled both red and green territory as investors reacted to the trickle of after-hours news announcements.
Gripping the headlines tonight was tobacco giant
, which fell amid news a Los Angeles court found it liable in a lawsuit brought by a 56-year-old man with cancer who claimed the company did not warn him of the health risks of smoking.
Shares of the company, which lately slid 3.5% to $48.25 on
, had traded off ahead of the court ruling during the day.
Tonight's verdict, which was reached after nine days of deliberation, ordered Philip Morris to pay $3 billion in punitive damages and almost $6 million in compensatory damages to Richard Boeken, who has brain and lung cancer.
fell 3.4% to $34.35 on Island after the company said it expects second-quarter revenue to fall by as much as 35% from first-quarter levels. The communications chipmaker also said it would take a second-quarter charge to close plants and lay off workers.
Sellers also swooped in on
American Eagle Outfitters
on Instinet after the retailer reported its latest sales figures. The company said same-store sales in May rose 0.2%, and that total sales in the month rose by 29.9% to $80.7 million from $62.1 million. The clothing retailer dropped 5.2% to $36.50.
But among those in green,
rose 0.7% to $14.65 on Instinet as investors took well to the news the company has ended a deal to acquire e-business software maker
. Shares of the business-to-business online auctioneer, which enables buyers to bid for industrial parts, raw materials and services, soared more than 19% to close at $14.55 in regular trading on the
Nasdaq as the market reacted positively to the scrapped acquisition.
FreeMarkets said the risks in the "current economic environment" led to its decision. The company also reiterated previous guidance for its second quarter ending in June, calling for a loss of 22 cents a share on revenue in the range of $36 million to $38 million.
And coming in on the tail end of earnings season, e-financial firm
, which provides consulting and software that help banks increase revenue and reduce costs, popped after posting first-quarter earnings in line with analysts' expectations. The company spiced up its earnings release with an upbeat forecast for 2001 and 2002, saying it was in a position to "meet and exceed" its expectations for 2001, as well as meet its "historical growth rates through 2002 and beyond."
Its shares bounced 32.1% to $14.86 on Instinet and 30.6% to $14.69 on
The Dallas-based Carreker also announced it completed the acquisition of payment processing company
, which would result in about 59% revenue growth and about 44% earnings per share growth in 2001, compared with fiscal 2000.
Not to be outdone,
, a wireless application and services firm that supplies Internet access to handheld devices, climbed 8.6% to $16.87 on Island after its parent company,
, raised its stake in the company, according to a filing by the
Securities and Exchange Commission
. Omni, which is a wholly owned subsidiary of
, is nearly doubling its stake in OmniSky.
The major indices may have
closed in the red, dragged by the latest corporate warnings from tech bellwethers such as
. Nevertheless, the late players were finding bargains among some big-cap tech outfits tonight.
, which gives its first-ever mid-quarter financial update after the markets close tomorrow,
trudged higher in what was a relatively quiet after-hours session.
Island ECN offers trading mainly in Nasdaq-listed stocks, from 7 a.m. to 8 p.m. EST.
explains how the rules change when the sun goes down in Investing Basics: Night Owl, a section devoted to after-hours trading.