Less than a month after crossing the 10,000 mark for the first time ever, the Dow Jones industrial average set a new milestone Monday, closing above 11,000. Things weren’t as stellar for Internet issues, as the sector’s leaders posted sizeable losses.
The Dow Jones industrial average gained 225.65 to 11,014.69 while the Nasdaq Composite lost 7.27 to end at 2,535.58 and Internet.com’s Internet Stock Index shed 33.02, or 5.47 percent, to 571.08.
Amazon.com Inc. (AMZN) plunged 21-1/8 to 150-15/16. Investors were apparently concerned over the company’s plans to continue spending heavily on advertising which last week resulted in a first-quarter loss more than twice as large as a year ago.
Shares of America Online Inc. (AOL) dropped 9-1/4 to 133-1/2. CNBC reported Monday AOL is no longer considering joining with Comcast Corp. to best AT&T Corp.’s $62.5 billion offer for MediaOne Group Inc.
Priceline.com Inc. (PCLN) dove 23-1/8 to 139-1/4 after climbing 18 percent on Friday and gaining more than 900 percent since going public in March. The company is expected to report only $44 million in sales when it reports Tuesday after the close, yet the company has a $29 billion market capitalization.
Not all Internet issues bled red on Monday. Online community theglobe.com Inc. (TGLO) gained 1-3/8 to 61-1/2. The company reported a pro-forma net loss of 47 cents for its first quarter, 29 cents better than the same period a year ago.
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