Internet Stocks Await Fed Decision

There was little movement in Internet stocks by midday Tuesday as investors remained on the sidelines, waiting for the Federal Reserve to issue the latest word on interest rates.

The Fed’s meeting will begin at 2 p.m. Eastern and a decision on interest rates is expected shortly thereafter.

Just before noon, the Dow Jones industrial average was up 56.04 to 10,909.51, the Nasdaq Composite had climbed 2.27 to 2,564.11 and Internet.com’s Internet Stock Index was off 2.79, or .48 percent, to 576.21.

The biggest ISDEX gainer was Broadcom Corp. (BRCM). The communications chip maker was up 7-1/8 to 97-7/8. Morgan Stanley Dean Witter Discover Tuesday increased its price target on Broadcom to $120 from $95.

Shares of Lycos Inc. (LCOS) climbed 3-1/8 to 111-5/8 after the company said it was taking a 9 percent stake in online auction company FairMarket Inc. Lycos is the latest in a series of Web sites to add auction capabilities.

Lycos is also set to report earnings after Tuesday’s market close.

Amazon.com Inc. (AMZN) had lost 2-3/8 to 135-1/4 in mid-session. Earlier Tuesday, Amazon announced it was taking a 35 percent stake in Homegrocer.com.

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