Internet Stocks Stage Late-Day Turnaround
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After being down across the board going into the half-way point of Wednesday's session, Internet stocks staged a strong rebound late in the day as all the major market indices posted a strong recovery.
Internet.com's Internet Stock Index recovered to close up 23.04, or 4.2 percent, to 571.78, the Dow Jones industrial average climbed 69.02 to 10,955.13 and the Nasdaq Composite jumped 48.66 to 2,533.78.
The company reported better-than-expected first quarter results and said it added 531,000 new customers in the quarter. That prompted Goldman Sachs to raise its 12-month price target to $150 and Warburg Dillon Read raised its target to $142.
The U.S. Department of Justice is looking into whether the company violated antitrust laws when it claimed ownership rights of customer names and addresses it gained under its exclusive government contract.
The day's big IPO was NorthPoint Communications Inc. (NPNT). The Digital Subscriber Line provider's shares soared 16-1/4 to 40-1/4 on their first day of trading. The company sold 15 million shares at $24 each late Tuesday, raising $360 million.
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