Internets Gain Despite Hints Of Rate Hike
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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.
Economists are generally expecting a hike of about one-quarter percent. Many Internet analysts are downplaying the move, saying it's already been factored into the sector. Mary Meeker, Internet analyst at Morgan Stanley Dean Witter & Co. told that firm's sales force Wednesday's Internet run-up is an indication the worst is over.
She said Internet issues could gain momentum in July when second-quarter earnings reports will start appearing.
internet.com's Internet Stock Index gained 7.73, or 1.62 percent, to 485.63, the Nasdaq Composite added 26.35 to 2,544.18 and the Dow Jones industrial average ended up 56.68 to 10,841.63.
The firm also reinitiated coverage of Excite@Home (ATHM) with a "buy" rating. That sent shares up 3-15/16 to 51-5/16.
Amazon.com Inc. (AMZN) added 1-1/4 to 112-15/16 after hitting 119-1/8 earlier. Shares were helped by Wednesday's announcement that the firm is paying $45 million for a stake in upscale auction house Sotheby's.
Inktomi Corp. (INKT) jumped 4-3/16 to 113. Inktomi shares have been on an upward march since announcing a new directory engine Tuesday. Peter Ausnit of Volpe Brown Whelan & Co. initiated coverage of the stock with a "buy" rating.
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