RealTime IT News

Nasdaq Jumps on Dow Additions

News that two technology leaders will soon join the Dow Jones industrial average was helping send the Nasdaq Composite higher Tuesday. In the Internet sector, deals and earnings news continued to dominate.

Just before noon, internet.com's Internet Stock Index was up 5.03, or .91 percent, to 557.34, the Nasdaq Composite had jumped 39.19 to 2,855.14 and the Dow Jones industrial average had gained 39.90 to 10,389.93.

The Dow got a major facelift Tuesday with the announcement that technology heavyweights Microsoft Corp. (MSFT) and Intel Corp. (INTC) would join the 30-stock index. Also moving to the Dow are Home Depot and SBC Communications. Being removed are Sears Roebuck & Co., Chevron, Union Carbide and Goodyear Tire.

This marks the first time since the index's 1896 creation that a stock outside the New York Stock Exchange will be a Dow Component. Both companies will continue to trade on the Nasdaq National Market. The changes will take effect Monday. The news had sent Microsoft up 2-1/16 to 94-1/2 and Intel had gained 2-9/16 to 73-13/16.

Several ISDEX members were having a good day, including Etoys Inc. (ETYS) gaining 4-3/4 to 77-1/4, Broadcom Corp. (BRCM) up 2-1/4 to 114-3/8, IXL Enterprises Inc. (IIXL) gained 2-7/16 to 46-5/16, Sportsline.com Inc. (SPLN) was up 2-5/16 to 34-1/8, Ticketmaster Online-CitySearch (TMCS) had climbed 2-7/16 to 22-7/8 and Xoom.com Inc. (XMCM) had gained 2-11/16 to 56-11/16.

Ask Jeeves Inc. (ASKJ) was up 1-7/8 to 79-7/8 despite reporting a third-quarter loss of 35 cents a share, up from 9 cents a year ago.

Homestore.com Inc. (HOMS) had jumped 5-1/16 to 47-1/8 after Jamie Kiggen of Donaldson Lufkin & Jenrette raised his rating to "buy" from "market perform." Kiggen also set a 12-month price target of $60.

bamboo.com Inc. (BAMB) was up 1-3/8 to 17-5/8 after the company announced it was merging with Interactive Pictures Corp. (IPIX).

PSINet Inc. (PSIX) was up 3/16 to 35-3/16. The company Tuesday acquired Australian ISP Zircon Systems Pty Ltd. It also reported a net loss of $1.35 a share, beating analysts' estimates by 4 cents.

Go2Net Inc. (GNET) had gained 1-5/8 to 58. The company Tuesday acquired FreeYellow.com, a provider of Web building tools and hosting, for $19.5 million in stock and cash.


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