Rate Hike Can't Stop Internets
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As expected, the Federal Reserve hiked interest rates by a quarter percentage point. While the broader market was mixed, Internet stocks ended the day on the upside.
internet.com's Internet Stock Index ended up 3.42, or 0.69 percent, to 495.69, the Nasdaq Composite had climbed 34.10 to 2,753.67 and the Dow Jones industrial average fell 20.90 to 11,278.86.
The day's big risers included E-Loan Inc. (EELN) , climbing 6-3/8 to 29-3/4. The online mortgage company Tuesday purchased the auto loan business of CarFinance.com from Bank of America for about $67.3 million in stock.
Microsoft Corp. (MSFT) closed up 5-3/4 to 92-3/16. Shares were benefitting from a U.S. appeals court decision to reverse a preliminary injunction granted in November to Sun Microsystems Inc. that blocked Microsoft from shipping a modified version of Sun's Java. Microsoft had contended its license allowed it to make modifications.
Separately, reports emerged Tuesday that Rick Belluzzo, who resigned as chairman and chief executive officer of Silicon Graphics, will join Microsoft to run its Internet operations. While SGI confirmed Belluzzo is leaving, it would not name the company he was joining and Microsoft would not comment.
In addition, Hambrecht & Quist issued a "buy" rating on Net2Phone.
Verio Inc. (VRIO) moved up 3-1/2 to 40-5/8. AOL's European subsidiary Tuesday also expanded a marketing agreement with Verio. Verio will now become the exclusive e-commerce, domain registration provider and Web hosting company for Netscape Online, AOL's free Internet service for the U.K.
A number of Internet leaders were also higher, although none had significant news. Gainers included Amazon.com Inc. (AMZN) up 1-15/16 to 120-5/16, Ariba Inc. (ARBA) jumping 13-3/8 to 140 and SportsLine USA Inc. (SPLN) up 4-9/16 to 25-3/4.
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