RealTime IT News

Bond Slump Leads to Internet Turnaround

Internet stocks rallied to close higher after a morning slump, thanks in part to strength among online financial issues brought on by a bond market slump.

internet.com's Internet Stock Index rallied to close up 10.19, or 2.13 percent, to 488.24, the Nasdaq Composite added 26.65 to 2,739.34 and the Dow Jones industrial average lost 84.85 to 10,829.28.

Leading the charge were online brokers and other financial stocks. Movers included E*Trade Group Inc. (EGRP) up 1-3/8 to 25 as well as online mortgage providers Morgage.com (MDCM) jumping 5 to 17-1/2.

Net2Phone (NTOP) soared 12-3/8 to 85. On Tuesday the company reached a deal with AT&T that will allow it to offer Internet telephony services to 17 countries.

Another big gainer was Fatbrain.com (FATB) which rocketed 9-1/16 to 24-1/16. The company on Tuesday introduced a new technology for selling books, magazine articles and other publications over the Internet. Dubbed eMatter, the system allows publishers to sell a variety of documents online.

Sun Microsystems Inc. (SUNW) gained 3-7/8 to 79-1/2. Sun Tuesday outlined a new strategy that will put a variety of open source productivity applications online for free.

Other strong gainers included Amazon.com Inc. (AMZN) up 5-1/8 to 124-3/8, Broadcom Corp. (BRCM) jumping 3-7/16 to 128-3/4, Ariba (ARBA) up 5-1/4 to 139, CMGI Inc. (CMGI) added 2-1/8 to 83-15/16 and DoubleClick Inc. (DCLK) climbed 5-1/8 to 99-7/8.

Among other movers, Inktomi Corp. (INKT) ended up 4-5/8 to 113-3/8, Go2Net (GNET) added 4-9/16 to 65, Real Networks Inc. (RNWK) jumped 5-5/8 to 81-3/4 and Yahoo! Inc. (YHOO) climbed 3-11/16 to 147-1/2.

America Online Inc. (AOL) lost 1-7/8 to 91-3/8 while eBay Inc. (EBAY) did an about face, gaining 6-1/8 to 125-9/16.

On Tuesday, AOL and eBay launched a new co-branded site that will give AOL users easier access to eBay auctions.

Excite@Home (ATHM) slumped 1-3/8 to 40-1/8. On Tuesday, the company took several minority stakes totaling $45 million in Rosenbluth Interactive. Rosenbluth has invested in a number of Internet start-ups, including WebMD, Webstakes.com, Quokka Sports and E-Stamp.

Autobytel.com (ABTL) climbed 9/16 to 15-11/16. The company launched a new consumer banking center in an effort to streamling auto financing.


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