ISDEX Off As Leaders Come Under Pressure
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Internet stocks weren't getting off to a good start in midday trading Monday as most of the leaders were trading lower and Internet brokers were being brought down after a profit warning from the Nasdaq's biggest market maker.
Just before noon, internet.com's Internet Stock Index was off 3.87, or .66 percent, to 581.60, the Nasdaq Composite was up 17.99 to 2,904.56 and the Dow Jones industrial average was up 46.54 to 10,696.30. Trading was lighter than normal due to the fact bond trading was closed for the Columbus Day holiday.
Also among the leaders, Ariba Inc. (ARBA) was up 7-1/16 to 184-1/16, Juniper Networks (JNPR) had gained 13-1/4 to 226-1/4 , Yahoo! Inc. (YHOO) was off 7-3/4 to 184-3/8, Doubleclick Inc. (DCLK) was down 3-7/8 to 132-3/4, CMGI Inc. (CMGI) had lost 3-1/8 to 109-3/8 and America Online Inc. (AOL) was down 1-1/4 to 120-9/16.
Finally, the e-finance sector was coming under pressure following a profit warning from Knight/Trimark Group Inc. (NITE). Knight, the Nasdaq's biggest market maker, was off 4-23/32 to 25-1/4. The company, which handles the trades for many online brokers, said a drop in trades by retail investors will cut its third-quarter earnings substantially, bringing them below estimates.
Knight is expecting to report a profit of 17 to 19 cents a share, far below the 30 cents a share analysts had expected.
That news was putting Internet brokerages under pressure. Ameritrade Holding Corp. (AMTD) was off 1-1/8 to 18-5/8, E*Trade Group Inc. (EGRP) had fallen 1-1/4 to 25-5/8, National Discount Broker Group Inc. (NDB) was off 11/16 to 25-5/16 and Southwest Securities (SWS) was down 15/16 to 23-13/16.
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