RealTime IT News

Post-Hike Remorse, Pre-Hike Jitters

The markets were hit with some post-Fed rate hike jitters. Despite yesterday's buy on the rumor, sell on the news trading activity, today's profit-taking hinged on the Fed's aggressive remarks following its committee meeting.

Investors are already starting to look ahead to next month's FOMC meeting, anticipating additional rate increases, and buckling down for an anemic summer in the stock market.

After solid returns early in the week, the ISDEX gave back some gains, falling 2.57% on the day. Rate sensitive bellwether stocks dragged the NYSE into the red, shedding 164.83 to 10,769.74, while tech stocks joined the sell-off sending the Nasdaq sliding 72.62 to 3,644.95.

Lycos investors just can't seem to make up their minds, rolling out of the wrong side of the bed with a heavy dose of sellers-remorse this morning. Shares plunged 15-1/32 to 57-19/32, following yesterday's Terra Networks merger news out after the bell. The stock-swap deal is worth roughly $12.5 billion for Lycos, and investors would do well to be happy with it. It won't get any better than this.

Shares of Mountain View-based Veritas roared 7-5/16 to 111-5/16, after the software maker inked a deal to provide Big Blue's enterprise computing business with storage management software. The agreement calls for IBM's AIX server platform to carry Veritas' product for the next five years.

TheStreet.com stormed off the set of its weekly Fox television news piece, tired of the TV show's parent company News Corp. treating the struggling financial news Web site like yesterday's flavor of the month. Shares of TheStreet.com curiously added 7/8 to 7-15/16.

Red Hat eased 3/4 to 21-1/4, after announcing plans to release its source code ahead of Intel's Itanium processor debut. The Open source newcomer will help developers port and optimize applications for IA-64 Linux.

The Fed rained on e-brokers' parade, and discount giant Charles Schwab led the way lower, down 1-15/16 to 43-3/4, while Knight/Trimark tumbled 1-1/4 to 29-7/8. TD Waterhouse eased 1/8 to 18-9/16, after reporting better-than-expected losses after the bell yesterday.