RealTime IT News

Internets Power Ahead on Good News

Determined not to be intimidated by the likelihood of an interest rate hike, investors Monday were bidding up Internet issues on a series of positive developments.

Just before noon, internet.com's Internet Stock Index had jumped 17.41, or 3.67 percent, to 491.28, the Nasdaq Composite was up 42.05 to 2,690.38 and the Dow Jones industrial average had climbed 107.02 to 11,207.63.

All the leaders were higher, with America Online Inc. (AOL) up 2-5/8 to 97-13/16. Merrill Lynch & Co.'s Henry Blodgett reiterated his "buy" rating.

eBay Inc. (EBAY) had jumped 4-5/16 to 127-5/16. Investors applauded the company's decision to lower the reserve fees for auctions and postpone plans to change its minimum bid guidelines.

Yahoo! Inc. (YHOO) gained 5-1/2 to 150-1/2. Yahoo! Monday launched Yahoo! Digital, a new site which offers Internet broadcasts and secure music downloads in MP3 and other audio formats.

Drugstore.com (DSCM) was up 2-5/16 to 50-13/16. Donaldson Lufkin Jenrette Monday issued a "buy" rating on the company and set a $60 price target.

Stamps.com Inc. (STMP) had vaulted 4-15/16 to 35-9/16. The company Monday sealed a deal to sell postage through the update utility in Microsoft's Office suite.

Online brokerages were also higher. E*Trade Group Inc. (EGRP) was up 1-1/4 to 27-13/16. The company Monday took a minority stake in online mortgage provider LoanCity.com. Southwest Securities (SWS), parent of Mydiscountbroker.com had climbed 1-5/8 to 38-1/4. The company Monday launched a national ad campaign. Other gainers in the sector included National Discount Broker Group Inc. (NDB), up 1-1/8 to 33-7/8.

Mail.com Inc. (MAIL) was unchanged at 16. The company Monday acquired The Allegro Group, a provider of corporate e-mail and hosting services.

Transaction Network Services Inc. (TNI) had soared 10-1/8 to 44-3/8 and PSINet Inc. (PSIX) had gained 2-1/4 to 47-13/16. PSINet Monday acquired TNS, a processor of Internet and credit card transactions, for $720 million in cash and stock.

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