CPI Prompts Another Net Fall
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Internet stocks were trading substantially lower at mid-day. Fueling the fall was a governement report stating that consumer prices rose 0.7 percent for the month of March, 0.3 percentage points higher than economists had expected. The Consumer Price Index (CPI) is the government's primary scale for inflationary growth and the increase had investors fearing future hikes in interest rates.
At 12:30 p.m, internet.com's Internet Stock Index had lost 59.83, or 8.54 percent, to 640.69, the Nasdaq Composite was down 271.21, or 7.38 percent, to 3,405.57 and the Dow Jones industrial average was 387.27 lower at 10,536.28.
ZipLink (ZIPL) was 3/8 lower to 9-1/2 despite positive news. The wholesale Internet provider has signed a national connectivity agreement with GoAmerica Communications Corp's. (GOAM) wireless division. GoAmerica gains access to ZipLink's ISP channels and allows it to now offer its customer base a full range of connectivity solutions.