Internets Stage Strong Rebound After Rubin Resignation
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Although it had been expected for months, the resignation of Treasury Secretary Robert Rubin Wednesday sent Internet stocks and all major U.S. market indices into a brief tailspin.
After being down more than 200 points after the announcement, the Dow Jones industrial average recovered to close down only 25.78 to 11,000.37, the Nasdaq Composite gained 39.31 to 2,605.99 and Internet.com's Internet Stock Index posted a gain of 2.72, or .46 percent, to 595.41.
CMGI Inc. shares lost 4-15/16 to 239-3/4 on the news. CMGI, one of Lycos' largest shareholders, had opposed the plan. Shortly after the merger was announced, CMGI executives started campaigning against the deal, believing Lycos could have gotten a better offer.
Broadcom Corp. (BRCM) added 3-15/16 to 96-5/8. The communications semiconductor maker Wednesday unveiled a new chip it says will handle data 10 times quicker than speeds seen on today's fastest copper networks.
E-mail provider Critical Path Inc. (CPTH) shed another 4-7/8 to 71-1/2 on Wednesday. Shares took a tumble on Tuesday after the company filed to sell an additional 4 million common shares.
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