Net Rally Fizzles
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Internet shares lost steam in afternoon trading, along with the other major U.S. indices as what initially appeared to be a solid rally faded, resulting in loses all around.
internet.com's Internet Stock Index lost 14.12, or 1.91 percent, to 725.84, the Nasdaq Composite dropped 87.16 to 3,706.41 and the Dow Jones industrial average shed 92.46 to 10,674.96.
The sector's biggest loser was InsWeb Corp. (INSW), which plunged 3-1/4 to 2-11/16. The online insurance broker said State Farm Insurance, one of its largest customers, would no longer participate in its online marketplace. InsWeb said that decision would lead to lower revenues. The company is also cutting 10 percent of its work force.
Earnings continued to dominate the news. Among those reporting was Copper Mountain Networks (CMTN), which gained 9-15/16 to 78-1/4. The high-speed Internet equipment maker earned 24 cents a share in its latest quarter compared to a 3-cent loss a year ago.
Spyglass Inc. )(SPYG) jumped 4-1/2 to 40-1/2. The company, whose software allows a variety of devices to connect to the Internet, earned 3 cents in the second quarter. Forecasts were for a 1-cent loss.
America Online Inc. (AOL) ended up 1-1/4 to 62. The company's third-quarter profit was 11 cents a share, 2 cents better than forecasts. The world's largest online service gained 1.7 million subscribers.
It wasn't all bad news. Foundry Networks Inc. (FDRY) jumped 3-3/8 to 85-1/4. The networking equipment maker is teaming up with Compaq Computer Corp. to combine its Internet traffic management systems with Compaq's caching appliance.
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