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RealTime IT News

Stocks Build on Morning Momentum to End Higher

Capitalizing on a solid run immediately following the opening bell, Internet and technology stocks rose across the board Friday despite a stronger-than-expected jobs report.

internet.com's Internet Stock Index jumped 16.82, or 2.3 percent, to 748.94, the Nasdaq Composite was up 96.51 to 3,816.75 and the Dow Jones industrial average climbed 165.37 to 10,577.86.

The Labor Department reported Friday the nation's unemployment rate fell to 3.9 percent in April, slightly below the 4 percent economists had forecast. The nation's economy added 267,000 non-farm jobs in the month, excluding 73,000 temporary workers hired by the Census Bureau.

Movers included Websense (WBSN) gained 3-11/16 to 29-3/4. The company, whose software allows corporations to monitor employee Internet usage, is teaming with Cisco Systems to incorporate its software in Cisco hardware.

Cisco Systems Inc. (CSCO) jumped 4-1/8 to 67-3/4. The networking company Friday acquired ArrowPoint Communications (ARPT) for about $5.7 billion in stock.

Netcentives Inc. (NCNT) leaped 2-3/4 to 17. The Internet marketer announced America Online Inc. (AOL), Citigroup Inc. (C), American Express Co. (AXP) and CMGI Inc. (CMGI) were combining to take a 5 percent stake in the firm.

CDNow Inc. (CDNW) gained 13/16 to 4-11/16. According to a recent SEC filing, Mexican billionaire Carlos Slim Helu bought a 9.2 percent stake in the company for $52.8 million.

Drugstore.com (DSCM) climbed 1-1/16 to 9-11/16. Lehman Brothers initiated coverage with an "outperform" rating, setting a $12-$14 price target.

Lehman also initiated eBay Inc. (EBAY) at a "buy" and a $200 target and Amazon.com Inc. (AMZN) at a "buy" and an $80 target. eBay shed 2-15/16 to 134 and Amazon jumped 3-7/16 to 58-1/2.

F5 Networks (FFIV) dropped 5-7/16 to 33-15/16. The maker of Internet content management software lost a quarter of its value last week despite posting first-quarter earnings matching Wall Street estimates.

SoftNet Systems (SOFN), lost 2-7/8 to 12-11/16. The broadband Internet services provider reported a loss of 66 cents a share in its fiscal second quarter, 7 cents higher than analysts were expecting. The fall came despite a 65 percent increase in sales due to higher-than-expected subscriber signups for the company's cable Internet business.

P-Com Inc. (PCMS) plunged 2-7/16 to 9-1/16. The maker of equipment to facilitate high-speed wireless Internet connections reported a first-qua