Fed Decision Causes Stocks To Turn Back
Page 1 of 1
Stocks gave back some of their gains Tuesday after the Federal Reserve hinted it will consider tightening interest rates in the future.
The Fed left interest rates unchanged in its monthly meeting Tuesday, although policy makers hinted they may soon rise. That caused the Dow to lose gains of more than 50 points and close down 16.52 to 10,836.95, the Nasdaq Composite shed 3.49 to 2,558.35 and internet.com's Internet Stock Index closed off 6.07, or 1.05 percent, to 572.93.
The biggest ISDEX gainer was Broadcom Corp. (BRCM). The communications chip maker closed up 7-5/8 to 98-3/8. Morgan Stanley Dean Witter Discover Tuesday increased its price target on Broadcom to $120 from $95.
Shares of Lycos Inc. (LCOS) gained 4-7/16 to 112-7/8 after the company said it was taking a 9 percent stake in online auction company FairMarket Inc. Lycos is the latest in a series of Web sites to add auction capabilities.
Books-A-Million (BAMM) rose 1-29/32 to 10-5/8. The bookseller, which also sells over the Web, fired the latest salvo in the price wars Tuesday. Books-A-Million said it would discount titles on The New York Times bestseller list by 55 percent.
Shares of Efax.com Inc. (EFAX) lost 1-5/16 to 17-3/4. The company, which markets software that converts faxes to e-mail, said President and Chief Operating Officer Rob Pollock was resigning immediately.
The most solid performer of the day was IPO Redback Networks (RBAK) which shot up 61-1/8 to 84-1/8. The company, which makes communications products for high-speed Internet access, sold 2.5 million shares at 23 on Monday, netting $57.5 million.
ALL NEW! internet.com's HotWatch a monthly e-mail subscription for $99, featuring Internet Stock Report's Steve Harmon, and his top 10 noteworthy Internet stocks for the month. Each month you will receive in-depth analysis on the top 10 Internet stocks to watch with the information you need to assess the fast-paced nature of Internet stocks. Staying on top of market changes in the Internet Stock market is what counts. For $99 per year, you receive 12 timely issues sent to you by e-mail. Don't wait, our next issue will be out before you know it with a whole new perspective on the market. Sign up today at: e-newsletters.