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.
Scient (SCNT)
was down 6-5/8 to 35-5/8 after Donaldson Lufkin Jenrette initiated coverage on the Internet
services firm with a “buy” rating.
Among the leaders, Ariba Inc. (ARBA)
had dipped 9/16 to 64-1/2, eBay Inc. (EBAY)
was 3-13/16 lower at 135, Exodus
Communications (EXDS)
was down 6-9/16 to 91-5/8, and Inktomi
Corp. (INKT)
had fallen 10-5/16 to 100-1/4.
Shares of National Information Consortium
(EGOV)
were off 4-1/4 to 13-1/4 after the governement Internet solutions provider
announced it was pulling plans for a secondary offering.
Internet Capital Group (ICGE)
continued falling, down 4-15/16 to to 36-7/8. The B2B holding company is now
trading 83 percent off its 52-week high.
