As sentiment that the Federal Reserve may raise the cost of capital the markets take a hit again on the tech and Internet side. ISDEX, which launches its Futures contracts on Kansas City Board of Trade, closes down 5.75% at $483.82. Today's snapshot:
E*TRADE (NASDAQ:EGRP) makes s $1.8 billion stock offer for Web-based bank Telebanc. Investors react unfavorably, driving down EGRP 11.66% to $39 5/16 per share. Also hurting EGRP is Merrill Lynch's new Internet effort. I see Schwab in front with Merrill perhaps catching up in 24 months. It should have just acquired E*TRADE. Because my thinking is that Merrill may waste time trying to figure out the Net.
StarMedia (NASDAQ:STRM) gains 4% to $61 3/16 per share as Wall Street starts to look outward for growth in the Internet. Note: STRM is added to ISDEX effective today, replacing Excite which merged with @Home.
Ticketmaster-Citysearch (NASDAQ:TMCS) replaces GeoCities in ISDEX today, as the Web community completes its merger with Yahoo.