The Night Watch: Handheld Makers Dive on Palm Warning

Investors were selling shares of handheld computer makers after the close Thursday following news that

Palm

(PALM)

will

miss analysts' revenue estimates for the current quarter.

Palm was down 17% to $1.83 in Instinet trading after the bell, and the other well-known names in the sector were also suffering.

Handspring

(HAND)

was down 6.9% to $1.88, and

Research in Motion

(RIMM)

was off 5.5% to $13.85.

Cray

(CRAY) - Get Report

was the volume leader, trading up 1.3% to $3.98. The

Nasdaq 100 Unit Trust

(QQQ) - Get Report

was also active, tacking on 0.2% to $30.60.

Overall, volume was again on the light side. In the first two hours of extra trading, around 2 million shares changed hands among the 20 most active stocks on the Instinet platform.

Elsewhere among the most actives,

Ericsson

(ERICY)

was up 0.7%.

Microsoft

(MSFT) - Get Report

was inching up 0.1%, and

Intel

(INTC) - Get Report

was gaining 0.5%.

Cisco

(CSCO) - Get Report

and

Oracle

(ORCL) - Get Report

were each adding 0.2%.

Starbucks

(SBUX) - Get Report

was gaining 2.5% to $24.17 after the company said same-store sales rose 10% in May.

One of the big losers of the session was

KPNQwest

(KQIPQ)

, the European network operator that last week filed for bankruptcy. The stock was plunging 3 cents, or 12%, to 22 cents after the bell. In regular trading, KPNQwest skyrocketed 79% to 25 cents on speculation that

AT&T

(T) - Get Report

might be interested in acquiring the company's assets.