(Updated from 6:14 p.m. EST)

After-hours traders were working to turn around some of the losses that put pressure on the

Nasdaq and left it wallowing in the downside at the closing bell.

Investors were also paying close attention to news posted in the extended session, rewarding and punishing as they saw fit.

This evening, inventory software developer

Manugistics

(MANU) - Get Report

posted fourth-quarter earnings of 5 cents a share, which was in line with the

Thomson Financial/First Call

estimate. Greg Owens, the company's chairman and chief executive officer, said in a statement, "We continue to see robust demand for our solutions even in the current economic environment."

The words were enough to get investors interested, sending the stock up 88 cents to $26.86 on

Instinet

and up 89 cents to $26.88 on

Island

ECN.

Reports that pharmaceutical giant

Johnson & Johnson

(JNJ) - Get Report

is

looking to buy drug delivery company

Alza

(AZA)

sent Johnson & Johnson down $2.83 to $85.38 in regular trading and Alza skyrocketing $8.70, or 29%, to $38.75. In recent trading on Instinet, Alza was modestly adding to the gains, up 30 cents to $39.05.

Handheld computer maker

Palm

(PALM)

was moving up 67 cents to $15.11 on Instinet and up 93 cents to $15.37 ahead of its third-quarter earnings announcement due out tomorrow. Many are expecting the company to meet or exceed estimates. The stock slid 13 cents to $14.44 in the regular session.

Bombs away for chipmakers as another one hits the dirt. Actually,

TranSwitch

(TXCC)

is a repeat offender, lowering its first-quarter earnings

guidance for the second time in a month. The news knocked the stock down $1.88, or 9.9%, to $17 on Instinet and $2, or 10.6%, to $16.88 on Island.

There was another repeat warner in the chipmaking sector --

Vitesse Semiconductor

(VTSS)

. The company said tonight that it was lowering forecasts for the second time this month. This time it said it's expecting earnings of 10 cents to 11 cents a share. On March 5, the chipmaker revised earnings downward to 21 cents to 22 cents a share from 26 cents to 27 cents a share.

Several stocks were reversing the losses they made earlier in the day.

i2 Technologies

(ITWO)

lost 69 cents in the regular session, sliding to $15.44, but on Instinet, it was getting back about 56 cents, moving it up to $16.

Some other big names that took a hit in the regular session, but were making gains in recent action were

Intel

(INTC) - Get Report

,

Oracle

(ORCL) - Get Report

and

Dell

(DELL) - Get Report

.

And even though many heavyweights were topping off the day with some positive attention, there were still a few that were adding onto earlier losses.

Cisco

(CSCO) - Get Report

and

Sun Microsystems

(SUNW) - Get Report

were among the losers that kept on losing. Cisco, which lately has been trading near its year lows in the past couple weeks, hit a 52-week low again today of $17.50. It finished the day slightly off that low at $17.88. In after-hours trading, the stock was off 20 cents to $17.68 on Island and off 19 cents to $17.69 on Instinet.

Meantime,

Affymetrix

(AFFX)

was a victim of some profit-taking. The genetic technology company jumped $3.81, or 14.2%, to $30.56 during the regular session, but in recent action on Instinet, was off 38 cents to $30.19.

Futures weren't showing much optimism ahead of tomorrow's opening. The

S&P 500 on

Globex

lately was down 2 to 1165, about 4 points below fair value as calculated by

TheStreet.com

.

Nasdaq 100

futures were down almost 6 to 1693, or about 2 points below fair value as calculated by

TSC

.

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 offers trading, mainly in Nasdaq-listed stocks, from 7 a.m. to 8 p.m. EST.

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.