MIDDAY MARKETS: Techs sluggish on profit worries

3 min read

A mixed forecast for the second quarter kept the Nasdaq treading water at midday Monday. The Nasdaq rose 5.28 to 3,865.84 and the Dow Jones industrial average climbed 11.76 to 10,461.06.

The Inter@ctive Week @Net Index fell 3 to 478.08.

Among companies predicted lower-than-expected results for their next quarter; EMachines (Nasdaq: EEEE), dropped 1 to 2 11/16. It said Monday its second quarter earnings will fall significantly short of Wall Street estimates as consumer PC demand fell.

Magic Software (Nasdaq: MGIC), down 4 7/16 to 21 1/16, slid after announcing its second-quarter results will miss estimates.

DoubleClick (Nasdaq: DCLK) was down 3 7/32 to 35 9/32 after Robertson Stephens lowered its revenue and earnings estimated on the stock. The investment bank said it saw softness for online advertisers in the third quarter. Engage (Nasdaq: ENGA) was up 1 5/8 to 14 7/8.

Companies with a brighter outlook included Intel (Nasdaq: INTC). Analysts upped their estimates for the company as it announced it will almost double its semiconductor chip manufacturing capacity in Ireland. Shares were up 4 3/4 to 130 13/16.

Leap Wireless (Nasdaq: LWIN) rose 1 3/8 to 2 11/16 after it said third quarter loss washalf of what the Street was expecting.

Amid a harsh stock slide, Healtheon/WebMD (Nasdaq: HLTH), down 1 3/4 to 15 1/8 moved Monday to save its acquisition Medical Manager Corp. and its publicly traded subsidiary CareInSite.

AT&T Wireless Group (NYSE: AWE) rose 1 1/8 to 28 3/4, after it announced it was snapping up new wireless systems in the San Francisco Bay-area, San Diego and Houston markets for $3.3 billion. Parent AT&T (NYSE: T) was up 11/16 to 34 1/8.

Microstrategy (Nasdaq: MSTR) was up 11/16 to 34 1/8, after raising $125 million in a private placement.

Asyst (Nasdaq: ASYT) was up 5 3/8 to 33 3/8 after it dispelled rumors its relationship with Applied Materials (Nasdaq: AMAT), down 2 1/8 to 90 15/16, might be souring.

S1 (Nasdaq: SONE) fell 6 9/16 to 21 after getting a downgrade from First Union. The company has had a class-action lawsuit filed against it.

Microsoft (Nasdaq: MSFT) fell 3/8 to 72 3/16 after announcing in an SEC filing that there could be a material impact on its stock if it does not get sufficient legal relief through a stay of a court order to split the company, or a successful appeal.

Among other leading tech issues: Cisco (Nasdaq: CSCO) fell 1 1/8 to 66 11/16, Sun Microsystems (Nasdaq: SUNW) dropped 1 3/13 to 90 1/8 and Oracle (Nasdaq: ORCL) was up 1 9/16 to 83 7/16.

Amazon.com Inc. (Nasdaq: AMZN) lost 1 15/16 to 44 1/16, Yahoo! (Nasdaq: YHOO) fell 4 7/16 to 136 1/2 and America Online Inc. (NYSE: AOL) fell 1 5/16 to 53 3/16.