Upside Resistance Proves Ironclad for Another Day

The Nasdaq set a record but couldn't close above 3000, and the Dow couldn't even stay in positive territory as profit-taking took hold.
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Nice try.

The

Nasdaq Composite Index

tried to close above 3000, but a stiff bout of selling hit the market beginning around 1:45 p.m. EST and scuttled the gauge's plans for making history today. The Comp closed roughly 18 points short of that historic level, although it did hit 3000 and trade above that level for a good chunk of the session before the midafternoon selloff. The index made a push in the final hour of trading to close above 3000, but it couldn't muster enough juice to make it happen. Nevertheless, the Comp did close at an all-time high.

The Comp advanced 13.95, or 0.5%, to 2981.60. It traded as high as 3014.84 intraday.

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Helping the Comp's cause were semiconductor stocks. The

Philadelphia Stock Exchange Semiconductor Index

soared 2.9%. Meanwhile, computer makers, which were also a nice boost for the Comp for a good portion of the day, lost a lot of their steam in the afternoon. The

Philadelphia Stock Exchange Computer Box Maker Index

rose 0.3% to 295.73 but ended well off its intraday high of 303.01.

Internet stocks didn't help the Comp's historic cause as they spent the majority of the session underwater.

TheStreet.com Internet Sector

index gave up 9.08, or 1.2%, to 752.77.

TheStreet.com

Red Hots index rose 3.02, or 1.25%, to 245.19. The 20-stock index tracks action in particularly volatile stocks and is meant to measure so-called hot money.

The blue-chip

Dow Jones Industrial Average

succumbed to an even bigger turnaround than the Nasdaq. After trading as high as 10,751.88 during the session, the Dow slumped 66.67, or 0.6%, to 10,581.84.

Peter Cardillo, chief strategist at

Westfalia Investments

, pointed to the Dow's recent run-up and said today's decline was a matter of profit-taking emerging. Cardillo said that every time the Dow reaches the 10,650-to-10,700 area, it runs into resistance.

Cardillo said the stock market has already discounted a 25-basis-point interest-rate hike Nov. 16, when the

Federal Open Market Committee

holds its next meeting.

The strategist said he sees the Dow going to 11,200 by year-end if the FOMC hikes by 25 basis points at its November meeting and if they take a neutral stance. Until the Nov. 16 FOMC meeting, he sees the Dow staying in a trading range and churning.

The

S&P 500

fell 6.38, or 0.5%, to 1347.74. It peaked intraday at 1369.39.

The small-cap

Russell 2000

gained 0.57, or 0.1%, to 432.39.

Financial services sector indices ended higher, but well off their best levels of the day. The

Philadelphia Stock Exchange/KBW Bank Index

rose 0.4%; the

American Stock Exchange Broker/Dealer Index

added 0.5%; and the

Nasdaq Financial-100 Index

expanded 0.4%.

The 30-year Treasury bond advanced 16/32 to 99 22/32, yielding 6.15%.

Neither economic data nor a

speech by

Federal Reserve

Chairman

Alan Greenspan

this morning had much of an impact on stocks or bonds. (

TheStreet.com's

partners at

The New York Times

covered the speech in a

story today.)

Stephen Shobin, chief technical analyst at

Lehman Brothers

, sees more rallying ahead for the market, perhaps into mid-January. But he thinks the overall correction in the market isn't complete.

Among some of the reasons he cited for the market to continue to rally:

General Electric

(GE) - Get Report

, which he thinks is the best bellwether for the market, continues to act well; medium-term momentum is oversold; bonds and financials have stabilized; and seasonality is favorable.

On the flip side, the technician also put forward his reasons for his view that the overall correction isn't over. Among some of the host of reasons: Breadth and volume ratios "lack stampede credentials"; the

Dow Jones Transportation Average

acts poorly; the bond hasn't completed a base; and "dollar/yen looks downright precarious."

As for the financials, (which closed well off their highs today and have been on a tear lately) Shobin said his guess is that the financials will act much like the basic materials stocks did earlier in the year when they made huge advances over about one to four weeks and "then became lethargic." Going forward, he said he wouldn't single out the sector as a leader.

In

New York Stock Exchange

trading, 904.6 million shares were exchanged while advancing stocks beat decliners 1,652 to 1,348. On the

Nasdaq Stock Market

, 1.24 billion shares traded while winners beat losers 2,073 to 1,879. New 52-week lows beat new highs 82 to 69 on the Big Board, while new highs beat new lows 199 to 108 in over-the-counter trading.

Among other indices, the Dow transportation average slipped 8.42, or 0.3%, to 2968.08; the

Dow Jones Utility Average

rose 1.47, or 0.5%, to 306.67; while the

American Stock Exchange Composite Index

gave up 0.45, or 0.1%, to 804.52.

Elsewhere in North American equities, the

Mexican Stock Exchange IPC Index

was closed today, while the

Toronto Stock Exchange 300

slipped 56, or 0.8%, to 7215.30.

Tuesday's Company Report

By Eileen Kinsella
Staff Reporter

(

Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified. New highs and lows on a closing basis unless otherwise specified.

)

The Nasdaq's valiant, but unsuccessful, attempt to close above 3000 was helped by jumps in

GoTo.com

(GOTO)

which gained 23 5/8, or 42.1%, to 80, and recent public offerings

InterTrust Technologies

(ITRU)

up 19 3/16, or 33.7%, to 76 1/8 and

Akamai Technologies

(AKAM) - Get Report

which popped 19 3/8, or 11.1%, to 192 3/4. All were among the Nasdaq's top percentage gainers and were rare bright spots in the Internet sector.

Mergers, acquisitions and joint ventures

Barnes & Noble

(BKS) - Get Report

rose 5/16 to 21 15/16 after it said it purchased a 49% interest in

IUniverse.com

.

Alaska Gov. Tony Knowles urged the

Federal Trade Commission

yesterday to block

BP Amoco's

(BPA)

proposed $26.8 billion takeover of

Atlantic Richfield

(ARC) - Get Report

and said he suspended Alaska's talks over the deal with BP Amoco. Shares of BP Amoco fell 2 to 55 1/4, while Atlantic Richfield dropped 4 13/16, or 5.2%, to 87 3/8.

Dana

(DCN)

lost 1/4 to 28 5/8 after saying it agreed to its largest divestiture yet, the sale of

Warner Electric Industrial Products Group

and most of

Warner Electric Industrial Motors and Controls

to

Colfax

.

HomeGrocer.com

said it has obtained $100 million in fourth-round financing from

Amazon.com

(AMZN) - Get Report

,

Martha Stewart Living Omnimedia

(MSO)

and others, which will contribute to the company's expansion into 20 new locations in 2000. Shares of Amazon slid 2 11/16 to 66 7/16, while Martha moved up 7/16 to 34 5/16. The online grocer said

Kleiner Perkins Caufield & Byers

and

Hummer Winblad Venture Partners

are among the other investors funding the project.

Sykes Enterprises

(SYKE) - Get Report

rose 11/16 to 31 7/8 and

Perot Systems

(PER) - Get Report

fell 1/16 to 19 after the companies said they have forged a tech agreement to offer consulting, tech support and other services.

Separately, Perot posted third-quarter earnings of 14 cents a share, in line with the five-analyst estimate and up from a year-ago 9 cents a share.

TV Guide

(TVGIA)

fell 3/8 to 51 15/16 after it said its television games division

TVG

inked a 10-year deal with

EchoStar

(DISH) - Get Report

to air TV Guide's live horseracing and interactive wagering network. EchoStar fell 2 5/8 to 63 1/2.

U.S. West

(USW)

gained 1/8 to 61 1/2 and

Qwest Communications

(QWST)

slipped 11/16 to 34 1/4 after shareholders gave their stamp of approval to the companies' planned $36 billion merger.

White Mountains Insurance

(WTM) - Get Report

dropped 6 to 120 after saying it acquired $50 million worth of stock in affiliated

Financial Security Assurance

(FSA)

. FSA edged up 9/16 to 56 11/16.

Winn-Dixie Stores

(WIN) - Get Report

rose 1/16 to 27 1/2 after it announced plans to sell 74 grocery stores in Texas and Oklahoma to

Kroger

(KR) - Get Report

for an undisclosed amount. Shares of Kroger lost 3/8 to 21 1/4. The sale comes after Winn-Dixie posted disappointing first-quarter results last month.

Earnings/revenue reports and previews

Cadmus Communications

(CDMS)

fell 1 1/16 to 8 1/16 after it posted first-quarter earnings of 17 cents a share before charges, missing the three-analyst estimate of 20 cents a share, and the year-ago 31 cents.

Fresh Del Monte

(FDP) - Get Report

rose 7/8, or 10.4%, to 9 5/16 after it posted third-quarter earnings of 21 cents a share, missing the five-analyst estimate of 25 cents and down from the year-ago 44 cents.

Global TeleSystems

(GTS) - Get Report

gained 1 5/8, or 6.5%, to 26 5/8 after it posted a third-quarter loss of 59 cents a share, narrower than the six-analyst estimate of a 68-cent loss but wider than the year-ago 42-cent loss.

Newbridge Networks

(NN)

dropped 5, or 24.1%, to 15 3/4 after it warned investors it would post a second-quarter profit of 8 cents to 10 cents a share, greatly missing the analyst estimate of 20 cents. The warning, which was the seventh in the last 11 quarters, prompted the resignation of the company's president and COO, Alan Lutz, who will be replaced by executive vice president Pearse Flynn.

Wachovia Securities

sliced its rating on Newbridge to neutral from long-term buy.

TheStreet.com/nytimes.com

joint newsroom wrote about

Newbridge earlier today.

Oxford Health

(OXHP)

gained 3, or 24.1%, to 15 1/2 after it posted third-quarter earnings of 29 cents a share, beating the 16-analyst estimate of 15 cents and up from the year-ago 58-cent loss.

TheStreet.com/nytimes.com

joint newsroom, covered the results in a separate

story.

Ralston Purina

(RAL)

climbed 7/16 to 31 13/16 after it reported fourth-quarter earnings of 36 cents a share, beating the 10-analyst estimate by a penny and up from the year-ago 31 cents.

Rite Aid

(RAD) - Get Report

lost 5/16 to 8 5/8 after it reported an unaudited net loss for the latest 13-week quarter of 6 cents a share. The seven-analyst estimate called for a loss of 26 cents a share. Since announcing preliminary second-quarter results in early October, Rite Aid has continued a review of its accounting, which was undertaken partly as a result of comments of the staff of the

SEC

. The company also continued to evaluate and make necessary adjustments for various matters identified as a result of that review.

Titan

(TTN)

climbed 5/16 to 16 9/16 after it reported third-quarter earnings of 13 cents a share, in line with the five-analyst estimate and up from the year-ago 5 cents a share.

Uno Restaurant

(UNO)

climbed 1/4 to 11 5/8 after it reported fourth-quarter earnings of 40 cents a share, beating the single-analyst estimate of 36 cents and the year-ago 20 cents a share. The company said the latest quarter had compared with the comparable 13 weeks from the year-ago period.

Offerings and stock actions

Enel

(EN)

got the cold shoulder from U.S. investors on its first trading day. The ADRs, each equivalent to 10 ordinary shares, were priced at $45 each by

Citibank Worldwide Securities Services

, a unit of

Citigroup

(C) - Get Report

. Shares of Enel, which is now one of the largest publicly traded electric utilities in Europe, failed to excite, ending the day up 3/16 to 45 3/16.

Kaufman & Broad

(KBH) - Get Report

gained 1/2 to 21 11/16 after it added 4 million shares to its buyback plan.

Mattel

(MAT) - Get Report

climbed 9/16 to 14 1/8 after saying it plans to spin off

Learning Co.

unit

Genealogy.com

. Mattel said

A&E Television

,

Hearst Interactive

and others will contribute $37.5 million in initial funds to the plan.

Nextel Communications

(NXTL)

was unchanged at 83 7/8 after saying its 30 million Class-A offering was priced at Monday's closing of 83 13/16.

Morgan Stanley Dean Witter

,

Goldman Sachs

, Credit Suisse First Boston,

Deutsche Bank Securities

,

Merrill Lynch

and

PaineWebber

served as underwriters for the deal.

PurchasePro.com

(PPRO)

popped 21 7/16, or 53.3%, to 61 1/2 after it said its chairman and CEO Charles Johnson plans to acquire $1 million of the company's stock.

St. Paul

(SPC)

climbed 1 1/16 to 32 11/16 after it said it would buy back up to $500 million of its shares.

Goldman Sachs

is expected to price a 25 million-share IPO for

Webvan

(WBVN)

between $11 and $13 tomorrow night.

Analyst actions

U.S. Bancorp Piper Jaffray

raised its price target in

Air Express

(AEIC)

to 33 from 30. Air Express shares climbed 1/2 to 29 7/8.

Credit Suisse First Boston

initiated coverage of

Colgate-Palmolive

(CL) - Get Report

with a hold rating. Shares of Colgate-Palmolive slipped 1 7/8 to 59 15/16.

CSFB also started coverage of

Expeditors International of Washington

(EXPD) - Get Report

as a strong buy, and

Circle Group International

(CRCL)

as a hold. Expeditors International shares fell 1/8 to 38 1/8, while Circle Group added 1 to 25 1/16.

Morgan Stanley Dean Witter

started coverage of

Hertz

(HRZ)

with an outperform rating. Hertz skidded 1/4 to 43 3/8.

CSFB analyst Wendell Laidley started coverage of

Interwoven

(IWOV)

with a buy rating and a price target of 105. Interwoven soared 4 3/8, or 5.3%, to 86 1/4.

PaineWebber

upped its earnings estimates for

Micron Technology's

(MU) - Get Report

first-quarter 2000 to 88 cents from 79 cents and to $4.27 from $4.19 for full-year 2000. Micron Technology jumped 2 5/8 to 75 1/4.

Warburg Dillon Read

rolled out coverage of

Province Healthcare

(PRHC)

with a buy rating and a price target of 21. Shares of Providence climbed 3/16 to 16 3/8.

Donaldson Lufkin & Jenrette

said it started coverage of

SCI Systems

(SCI) - Get Report

with a buy recommendation. SCI Systems popped 3 7/16, or 7%, to 52 1/2.

U.S. Bancorp Piper Jaffray

rolled out coverage of

SmartDisk

(SMDK)

with a strong buy rating. SmartDisk shares bounced 2 3/16 to 55 3/16.

Goldman Sachs

upped its price target on

STMicroelectronics

(STM) - Get Report

to 125 from 85 and reiterated its market outperformer rating. STMicroelectronics shares were jumping 10 5/16, or 11.4%, to 100 1/8.

Warburg Dillon Read raised its price target on

Teva Pharmaceuticals

(TEVIY)

to 70 from 69.

Merrill Lynch

raised its intermediate rating on the stock to accumulate from neutral. Shares of Teva retreated 1/16 to 49 3/16.

Goldman Sachs upgraded

USA Networks

(USAI) - Get Report

to its recommended list from market outperformer. USA Networks mounted 1 11/16 to 44 7/8.

Miscellany

Abbott Labs

(ABT) - Get Report

bounced 2 11/16, or 6.6%, to 37 5/8 after it said it plans to pay the federal government $100 million to satisfy terms of a deal to cover its diagnostic manufacturing operations in Lake County, Ill. Earlier today,

The Street.com/nytimes.com

joint newsroom reported on

the stock

DaimlerChrysler

(DCX)

slid 15/16 to 75 1/4 on new that it is expected to announce plans to discontinue its

Plymouth

brand, due to decreasing sales in recent years,

The Wall Street Journal

reported. According to the

Journal

, DaimlerChrysler could cut back on costs by axing Plymouth, without affecting its high-volume product lines.

General Electric skidded 15/16 to 128 7/16 after it said chairman and CEO John Welch plans to retire in April 2001. A company spokesman said that it has not named a replacement for Welch.

TheStreet.com/nytimes.com

joint newsroom wrote about it in a separate story

today.

Gilead

(GILD) - Get Report

received a blow to its stock price after the

Food and Drug Administration

rejected its AIDS treatment

Adefovir

. Gilead shares plummeted 14 3/16, or 22.4%, to 49. TheStreet.com wrote about the

reaction to the FDA's rejection earlier today.

Separately,

Bristol-Myers Squibb

(BMY) - Get Report

stumbled 2 1/2 to 74 3/4 after it said it received

FDA

approval for its once-a-day form of AIDS treatment

Videx

. Prior to the approval, the drug needed to be taken twice a day.