Wall Street was mixed in mid-afternoon trading on Friday as profit warnings continued to weigh heavily on blue chips, while some upbeat earnings reports from the tech side of things renewed investor interest in computer-related stocks.
Oh, and remember all those predictions about unprecedented numbers of holiday shoppers going online this year? Looks like they're coming true. Internet stocks behaved accordingly.
The Wired Index was up 0.53 points at 470.40, while the Dow Jones Industrial Average was 55.61 lower at 8785.97. The Nasdaq Composite Index gained 5.39 to 2021.35, and the S&P 500 was down 4.24 at 1160.78.
Oracle (ORCL) rose $2.13 to $37.06 after topping analysts' expectations with a 46 percent increase in net income. The world's biggest database software developer reported quarterly profits of 28 cents a diluted share, 4 cents higher than the Street's consensus estimate.
Likewise, National Semiconductor (NSM) advanced $1 to $15.63 with its own earnings announcement, although the positive news here was that the company's loss was smaller than anticipated. The chipmaker said its loss in the latest quarter amounted to 29 cents a diluted share, not including the usual charges that throw off the curve. Analysts had been expecting a setback of 49 cents.
High hopes for the semiconductor business drove industry leader Intel (INTC) up 63 cents at $115.25. Fittingly, Dell Computer (DELL) slipped 25 cents to $67.06, and International Business Machines (IBM) was up $1.44 at $166.44.
Microsoft (MSFT) climbed $1.94 to $133.50, after reports that it is looking to invest millions in nearly a dozen Silicon Valley venture capital outfits. Such a move, naturally, would give Gates & Co. the inside track on emerging technologies, which, if you're a Microsoft shareholder is a very good thing. If you're not, well....
On the Internet front, a new survey by Marketing Corp. of America -- now there's an unbiased-sounding bunch of guys -- reveals that about 10 percent of respondents said they made online purchases in the week after Thanksgiving. Stack that up against the mere 1 percent who said as much a year ago, and it's clear the rosy forecasts for e-commerce appear to be panning out.
Not surprisingly, then, Amazon.com (AMZN) rose $5.56 to $218.69, and eBay (EBAY) was $2.88 higher at $189. America Online (AOL) advanced $1.38 to $91.38, and Yahoo (YHOO) was up 50 cents at $193.25.
Thursday's trio of new share offerings were mixed on their second day out of the gate. Internet America (GEEK) gained another 25 cents to $15.13, while AboveNet Communications (ABOV) fell $3, or 18 percent, to $13.75. Infinity Broadcasting (INF) was 6 cents lower at $23.
Coca-Cola (KO) fell $2.75 to $63.31 after warning that its fourth-quarter earnings won't make the grade, becoming the latest blue chip to dump cold water on analysts' expectations. The announcement followed news that Coke will spend almost $2 billion to acquire Cadbury Schweppes' soft drink brands, but only outside the US market. Do they drink Dr. Pepper in Bangladesh?
In telecom, Ciena (CIEN) declined $1.75, or 10 percent, to $15.63 after warning that increased spending will limit profitability in the first half of next year. The equipment maker reported a smaller-than-expected loss of 3 cents a share for the latest quarter.
Meanwhile, wireless management systems designer Telxon (TLXN) plunged $11.69, or 43 percent, to $15.56 as it "restated" its fiscal second-quarter performance to show a loss instead of profit in light of some accounting changes. The company also said it's looking to break even in fiscal 1999, as opposed to the $1.29-a-share profit expected by analysts.
MCI WorldCom (WCOM) confirmed reports that the company will place pink slips in the Christmas stockings of about 2,000 workers as part of plans to trim some $2.5 billion in overhead. Investors applauded the move, sending MCI's stock up $1.19 at $63.94. Wall Street can get damn chilly this time of year.
