All Indices Lose Ground Today On Rate Fears (Again)

Once the fear of interest rate increases creeps into the market it’s like an uninvited gnat swimming in the soup of an otherwise bullish market. However, even as the indices all pluck the bug from their eye today’s market action is not all down since losses only hover in the 1% range or less from the Dow to NASDAQ. That 1% is equivalent to 4% loss in ISDEX, due to the more volatile nature of Internet stocks up and down.

Consider that each year of “normal” time equals 7 years in “Internet” time; the same can be said of percentages gained and lost with ISDEX relative to non-Internet indices. 4% either way is a quiet day as a group for the 50-stocks herein.

Far from an anomaly I expect a rollercoaster ride from now until Fall with the sector based on two things: 1) traditional summer tech sluggishness and 2) if Internet stocks behave at all as they have the past 5 years then the pattern may emerge again this year. The current ISDEX value is 556.56 with a change of-23.49 (-4.05%).

  • CNET (NASDAQ:CNET) will be added to the NASDAQ 100, giving investors reason to push shares up slightly for the computer/tech media firm. CNET shares up 5% to $125.75.
  • CyberCash (NASDAQ:CYCH) shares rally a few points, gaining 4% to $15.75, as a call center firm picks up CyberCash’s ICVERIFY service to do real time credit card authorizations. Between INSTABUY and ICVERIFY I think CyberCash may finally have some real growth products for the e-commerce marketplace.
  • VeriSign (NASDAQ:VRSN) coverage is initiated by Bear Stearns with an “attractive” rating, giving VRSN cause to climb 5% to $139 9/16 per share. This stock looks tremendously overvalued to me at $3.5 billion market cap. Revenue for first quarter comes in strong at $15.6 million while loss narrows.

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