Falling Bond Yields Lead Blue Chips Over Internet Stocks

Investors were coming back into blue chips Monday as fears over inflation were eased by falling bond yields. However, Internet stocks weren’t as lucky as the sector had slumped in midday trading.

Just before midday, internet.com’s Internet Stock Index was off 6.74, or 1.37 percent, to 484.07, the Dow Jones industrial average had climbed 118.42 to 10,670.98 and the Nasdaq Composite was up 14.75 to 2,567.40.

Recent IPO Redback Networks Inc. (RBAK) climbed 5-3/8 to 103-1/4. Qwest Communications International Inc. agreed to use Redback’ sNetwork Subscriber Management System.

About.com (BOUT) gained 1-3/4 to 43-9/16 after sealing an advertising deal with HotJobs.com.

Broadcom Corp. (BRCM) continued its recent run-up. The maker of chips used in broadband devices was up another 3-5/16 to 116-7/16.

Internet ad firm DoubleClick Inc. (DCLK) was down another 4-7/16 to 71-1/2. Investors continue to worry a sale of AltaVista to CMGI could hurt the company going forward. AltaVista and CMGI both confirmed Friday the two are in talks that could lead to an AltaVista sale. Currently, AltaVista accounts for about 30 percent of DoubleClick’s revenues. Many are speculating CMGI, which owns DoubleClick competitors Adsmart and Engage, would terminate AltaVista’s deal and switch to its own solutions.

Healtheon Corp. (HLTH) lost 8-7/16 to 71-7/8. Barron’s is reporting that Microsoft, which owns a large stake in Healtheon, is looking to sell about 1.8 million shares before Healtheon’s merger with WebMD goes through. Even after the sale, Microsoft would control 17.2 percent of Healtheon.

Online broker Ameritrade Holding Corp. (AMTD) lost 3-7/8 to 81-5/8 after announcing it will sell $250 million in stock and $10 million in debt in a secondary offering. The money will be used to fund advertising and possible acquisitions.

Finally, shares of Juniper Networks (JNPR) fell 4-3/4 to 94-1/8. Friday’s red-hot IPO, Juniper hit 105 on its first day from its offering price of 34.

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