IPO Enthusiasm, Economic Data Prompt Net Rally
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Internet issues rallied for a second straight day, following strong economic data and a couple of Internet companies hitting the public market.
internet.com's Internet Stock Index jumped 36.32, or 5.28 percent, to 724.31, the Nasdaq Composite leaped 99.05 to 3452.76 and the Dow Jones industrial average gained 40.67 to 11039.06.
Stocks were helped by a report that single-family homes in the United States rose to record levels in the South, West and Midwest. The Commerce Department reported new home sales jumped 16.3 percent in October to 986,000. That's 100,000 more than economists were expecting. September's number was revised to a drop of 8.1 percent on sales of 848,000 units.
USinternetworking Inc. (USIX), a leading application service provider (ASP), and Ariba Inc. (ARBA) ,announced a partnership that will create a B2B e-commerce application targeting mid-to-large sized companies. Shares of USIX surged ahead 13-9/16 to 73-1/4. ARBA added 12-5/16, closing at 200-5/16.
Amazon.com Inc. (AMZN) added 4-1/16 to 89-1/6. A federal judge ordered rival, Barnes&Noble.com (BNBN) to not implement a feature similar to Amazon's 1-Click until a lawsuit Amazon filed is heard. 1-Click stores a user's buying information so a returning customer can buy items with one-click of a computer mouse. Shares of BNBN fell 3/8 to 19.
TMP Worldwide Inc. (TMPW) soared 32-1/16 to 127-1/16. The owner of the Monster.com job site signed a four-year, $100 million deal with AOL to become the exclusive career site on AOL's network. Also, Paine Webber initiated coverage of TMP Worldwide with a "buy."
Internet consulting firms are hot ahead of Agency.com's IPO. Agency raised its offering price range from $10-$12 to $22-$24 on Thursday. Shares will begin trading Friday.
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