Israeli shares on Wall Street are posting gains as the Nasdaq Composite index rises 2.2%. The Dow Jones is up 0.3%, despite an announcement by Nokia (NYSE:NOK) that it sold just 128 million cellular phones in 2000, falling considerably short of all forecasts. Not surprisingly, Nokia's stock is in freefall, and has so far dropped 10%.

Inexplicably, Israel's Magic Software Enterprises (Nasdaq:MGIC) is up 16.2% to $2.7, 10% above the stock's closing price in Tel Aviv. The company has not offered any explanation for the sharp rise.

Mercury Interactive's (Nasdaq:MERQ) stock has risen 8.6% to $56.8. On Monday, Mercury shares lost 9%, even though Prudential upgraded its rating from Accumulate to Strong Buy.

BackWeb (Nasdaq:BWEB) has gained 6% to $2.8. Investors have trounced the company since it announced that its fourth-quarter results would be disappointing. Investment house

Goldman Sachs

today announced that it is slashing the company's 2001 revenue forecast from $74 million to $51 million. The bank cut its EPS for 2001 from 22 cents, to 16 cents. Meanwhile, the William Capital Group investment house has downgraded BackWeb from a Buy to a Hold. Today's gains indicate that investors believe the current stock price already incorporates the downgraded projections. BackWeb shares have shed 36% since the company released its profit warning for the fourth quarter.

Vyyo's

TheStreet Recommends

(Nasdaq:VYYO) stock is up 6.5% to $7.1, after the company received an aggressive recommendation from investment house Tucker Anthony. The investment house upgraded its recommendation from a Market Perform to a Strong Buy.

But Nice Systems (Nasdaq:NICE) is off 2.4% to $17.5, while in Tel Aviv the stock jumped 10.2% today. The shares have lost 60% since last week when the company released a profit warning for the fourth quarter of 2000. Yesterday Nice stock rose 20% in NY.

Check Point Software Technologies

(Nasdaq:CHKP) is trading up 4.9% to $116.4. Yesterday, investment house Robinson-Humphrey downgraded its recommendation for the company from a Buy to an Outperform.

Precise Software Solutions

(Nasdaq:PRSE) is on a downward trend, plunging 21.6% to a record-low of $12.9. That follows its 25% drop yesterday, and the sale of its stock by investor

Jerusalem Venture Partners

.