Internet Stocks Surge As Rate Picture Clarifies
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Internet issues moved higher Thursday despite some hints from Federal Reserve Chairman Alan Greenspan that a small interest rate hike is in the cards.
Many economists are expecting a hike of about one-quarter percent. Many Internet analysts are downplaying the move, saying it's already been factored into the sector.
Just before noon, internet.com's Internet Stock Index had climbed 23.38, or 4.89 percent, to 501.28, the Nasdaq Composite had gained 29.45 to 2,547.28 and the Dow Jones industrial average was up 6.65 to 10,791.60.
All the sector's leaders were higher including America Online Inc. (AOL), up 6-5/16 to 112-3/16. Shares continued to benefit from Merrill Lynch Internet analyst Henry Blodgett reiterating his "buy" rating earlier this week.
The firm also reinitiated coverage of Excite@Home (ATHM) with a "buy" rating. That sent shares up 6-1/8 to 53-1/2.
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