RealTime IT News

Market Strength Helps Internet Stocks Surge, Dow Set Milestone

Internet stocks started off a holiday-shortened week by surging Monday, helped by continued optimism that also gave the Dow Jones industrial average the nudge it needed to close above the 10,000 mark for the first time.

The Dow Jones industrial average closed up 184.54 to 10,006.78 while the Nasdaq Composite gained 72.78 to 2,491.95. Internet.com Internet Stock Index also benefitted, closing up 16.25, or 3.03 percent, to 553.33.

One of the biggest contributors to the positive momentum among Internet issues was Amazon.com Inc. (AMZN), which gained 10-9/16 to 149-5/8. The online retailer Monday announced plans to start an online auction service.

That news was bad for shares of other online auction sites. Market leader eBay (EBAY), lost 6-23/32 to close at 147-25/32 while Onsale Inc. (ONSL) dropped 1-5/16 to 34-1/16.

Shares of Yahoo! Inc. (YHOO) gained 4-5/8 to 176 amid reports that it will seal a deal to buy Internet broadcaster Broadcast.com by Thursday. That news also sent Broadcast.com (BCST) shares climbing 4-1/4 to 114-3/4.

Cable Internet provider @Home Corp. (ATHM) jumped 8-13/16 to 159-11/16 after David Alger, chief executive of Fred Alger Management, praised the company in the current issue of Barron's.

Providing more proof of the positive effects of adding .com to a company's name, shares of Computer Literacy (CMPL) shot up 7-1/2 to 28-1/4 Monday. The online retailer of technical books Monday changed its name to Fatbrain.com. Its stock will begin trading Tuesday under the new symbol "FATB."

Internet provider Concentric Network Corp. (CNCX) leaped 13-5/16 to 80-5/16 after announcing a 2-for-1 stock split, which will take effect April 30.

Shares of Critical Path Inc. (CPTH) shot up 41-7/8 to 65-7/8 on their first day of trading Monday. The provider of business e-mail services debuted at 24.