FreeMarkets (FMKT) was down 24.9% in preopen Island trading. After the close Monday, the business-to-business software company posted first-quarter loss of 24 cents per share, ahead of the Thomson Financial/First Call consensus of 26 cents and the same as the year-ago result.

The company said it expects to post a second-quarter loss of 22 cents per share and to break even in the first quarter of 2002 before items.

Robertson Stephens

downgraded the stock to long-term attractive from buy.

Goldman Sachs

noted that revenue has been hurt by the slowing economy buy the company has been able to control expenses by lowering headcount.

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Other business-to-business stocks were higher preopen.

Ariba

(ARBA)

was up 1.7%.

Commerce One

(CMRC)

was up 3.8%.