Dow Outpowers Techs As Investors Show Rate Optimism
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Blue chips and techs outpowered Internet shares as investors seemed confident the Federal Reserve won't hike interest rates for the third time in three meetings when the board convenes on Tuesday.
internet.com's Internet Stock Index closed up 2.06, or .39 percent to 527.71, the Nasdaq Composite climbed 59.12 to 2,795.97 and the Dow Jones industrial average gained 128.23 to 10,401.23.
The day's screamer was Preview Travel (PTVL) which closed up 6-11/16 to 24-5/16. Competitor Travelocity, a unit of Sabre Holdings Corp. (TSG) will acquire 70 percent of Preview Travel for $50 million in cash. Sabre will combine the two services which will operate under the Travelocity name.
The deal wasn't good news for Priceline.com (PCLN) which allows consumers to name their own price for airline tickets and hotel rooms. Priceline shares lost 29/32 to 62-9/32 after being down as low as 61-1/4.
RCN Corp. (RCNC) jumped 7-21/32 to 45-23/32 after sealing a venture with Paul Allen's Vulcan Ventiures. Vulcan will invest $1.65 billion in RCN and plans to form a joint venture dubbed Broadband Partners with Allen's Charter Communications, RCN and several other firms. Broadband Partners will offer high-speed Internet services to RCN and Charter subscribers.
Other leaders were mostly higher, with Ariba Inc. (ARBA) jumped 11-9/16 to 162-7/8, Broadvision Inc. (BVSN) gained 6-3/8 to 145-3/8 and Broadcom Corp. (BRCM) jumped 4-9/16 to 117-1/16. Yahoo! Inc. (YHOO) was the only loser, dropping 4-1/2 to 171-3/16.
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