ISDEX and Blue Chips Swoon on Interest Rate Fears
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The Blue Chips joined Internet stocks and turned volatile today on interest rate fears, with the DJIA dropping 235.2 points to close at 10,466.9.
The ISDEX closed down 2.9 percent or 14.8 points to close at 490.3 after spending a good part of the day in positive territory.
The Blue Chip decline is attributed to this morning's news that the overall U.S. economy grew 4.1 percent in the first quarter and was growing so fast that the Federal Reserve would raise interest rates soon. The tech-heavy NASDAQ shrugged off the news with an 8-point decline.
Among ISDEX stocks, InfoSpace stood out with a 15.9 percent rise on the strength of several partnerhip announcemenets.
Other Internet issues doing well included AutoBytel which rose 47 percent to close at 23 1/8 on news that it is now generating about $24 million daily in car and truck sales. Prodigy rose 8.7 percent on news that it will buy the consumer Internet service of Cable & Wireless for between $50 and $75 million.
Critical Path, a provider of e-mail hosting, dropped 6.9 percent to 54 on reports that it is being sued in a dispute over confidentialy and trade secrets.