Internets Give Back Gains
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After being up earlier in the session on news that the technology sector had broken into the Dow Jones industrial average, Internet stocks fell in the afternoon in response to a drop in consumer confidence and disappointing corporate earnings.
internet.com's Internet Stock Index lost 0.86, or .16 percent, to 551.45, the Nasdaq Composite lost 4.68 to 2,811.27 and the Dow Jones industrial average reversed gains of almost 40 to lose 47.80 to 10,302.13.
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 didn't help Microsoft by day's end as it lost 1/16 to 92-3/8 although Intel squeezed out a gain of 1/16 to 71-5/16.
Digital Island Inc. (ISLD) soared 10-1/4 to 48-15/16. The e-commerce company was reiterated a "buy" by Lehman Brothers, one day after it agreed to purchase Sandpiper Networks for $1.1 billion in stock.
GlobeSpan Inc. (GSPN) rocketed 16-1/4 to 81-1/4 after the high-speed chip designer reported a third-quarter loss of 1 cent a share, down from a 15-cent loss in the same period a year ago.
Also, Banc Boston Robertson Stephens reiterated its "buy" rating and $75 target.
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