Fed Officials Tug on Markets

Markets ended mixed Wednesday after Federal Reserve Chairman Alan Greenspan skirted the interest rate issue during a speech Wednesday. However, Fed Governor Laurence Meyer’s warning that inflation may still pose a threat was enough to send interest-sensitive techs and Internets lower.

internet.com’s Internet Stock Index fell 9.40, or 1.88 percent, to 490.63, the Nasdaq Composite dropped 28.52 to 2,808.74 and the Dow Jones industrial average was up 1.26 to 11,035.39.

Red Hat Software (RHAT)
continued its meteoric rise Wednesday, surging 8-3/4 to 116-3/4. The company was as high as 135-1/4. The company announced its intention to sell software in Japan.

Phone.com (PHCM)
soared 18-3/8 to 168-3/8. The company announced deals with 10
Japanese manufacturers.

Among the leaders, Yahoo! (YHOO)
moved down 1-9/16 to 153-7/16, eBay
Inc.
(EBAY)
gained 15/16 to 134-3/4 and Amazon.com (AMZN)
lost 1-1/2 to 61-7/16.

Mortgage.com (MDCM)
climbed 1-13/16 to 17-1/2. An analyst with US Bancorp Piper Jaffray
put a “strong buy” on the company.

Priceline.com Inc. (PCLN)
dropped 4-9/16 to 63-1/4. Shares fell after Microsoft Corp.’s (MSFT)
Expedia unit introduced a “name-your-price” hotel service.


There were a variety of deals for Internet service providers.
Shares of Concentric Network Corp. (CNCX)
were up 1-11/16 to 24-7/16. The company Wednesday purchased UK
Internet provider Internet Technology Group PLC for $215 million.

Prodigy Communications (PRGY)
fell 3/4 to 16-3/8. Prodigy Wednesday purchased BizOnThe.Net for
$100 million in stock and cash. The company provides Web hosting services to small businesses.

Lycos Inc. (LCOS)
was down 1/2 to 43-1/8. Lycos Wednesday purchased financial
information provider Quote.com Inc. for $78.3 million in cash.

Mediconsult.com Inc. (MCNS)
had jumped 7/8 to 9-1/8. The company, which provides health
information on the Internet, late Tuesday purchased Physicians’ Online Inc.
for $180 million in cash and stock.

Online grocer Webvan announced the terms of its IPO today. It plans to sell 25 million shares between $11-$13. The lead underwriter is Goldman Sachs.


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