After being up earlier in the session on news that the technology sector had broken into the Dow Jones industrial average, Internet stocks fell in the afternoon in response to a drop in consumer confidence and disappointing corporate earnings.
internet.com’s Internet Stock Index lost 0.86, or .16 percent, to 551.45, the Nasdaq Composite lost 4.68 to 2,811.27 and the Dow Jones industrial average reversed gains of almost 40 to lose 47.80 to 10,302.13.
The Dow got a major facelift Tuesday with the announcement that technology heavyweights Microsoft Corp. (MSFT) and Intel Corp. (INTC) would join the 30-stock index. Also moving to the Dow are Home Depot and SBC Communications. Being removed are Sears Roebuck & Co., Chevron, Union Carbide and Goodyear Tire.
This marks the first time since the index’s 1896 creation that a stock outside the New York Stock Exchange will be a Dow Component. Both companies will continue to trade on the Nasdaq National Market. The changes will take effect Monday. The news didn’t help Microsoft by day’s end as it lost 1/16 to 92-3/8 although Intel squeezed out a gain of 1/16 to 71-5/16.
Several ISDEX members had a good day, including Etoys Inc. (ETYS) gaining 5-5/16 to 77-13/16, Broadcom Corp. (BRCM) up 2-15/16 to 114-13/16, IXL Enterprises Inc. (IIXL) gained 2-1/8 to 46, Sportsline.com Inc. (SPLN) was up 1-15/16 to 33-3/4, Ticketmaster Online-CitySearch (TMCS) climbed 1-11/16 to 22-1/8 and Xoom.com Inc. (XMCM) rocketed 6-3/8 to 60-3/8.
Digital Island Inc. (ISLD) soared 10-1/4 to 48-15/16. The e-commerce company was reiterated a “buy” by Lehman Brothers, one day after it agreed to purchase Sandpiper Networks for $1.1 billion in stock.
GlobeSpan Inc. (GSPN) rocketed 16-1/4 to 81-1/4 after the high-speed chip designer reported a third-quarter loss of 1 cent a share, down from a 15-cent loss in the same period a year ago.
Ticketmaster Online-CitySearch Inc.< (TMCS) gained 1-11/16 to 22-1/8 after reporting a third-quarter loss of 41 cents a share, 8 cents better than expected.
Net.Bank (NTBK) gained 1-5/16 to 21-3/4. The company reached a deal with Microsoft to provide content and advertise on MSN’s MoneyCentral.
Netzero Inc. (NZRO) lost 2-5/8 to 22 despite an upgrade to “buy” from “outperform” by Wit Capital’s Jonathan Cohen.
Ask Jeeves Inc. (ASKJ) lost 5/16 to 77-11/16. The company reported a third-quarter loss of 35 cents a share, up from 9 cents a year ago.
Homestore.com Inc. (HOMS) jumped 3-11/16 to 45-3/4 after Jamie Kiggen of Donaldson Lufkin & Jenrette raised his rating to “buy” from “market perform.” Kiggen also set a 12-month price target of $60.
bamboo.com Inc. (BAMB) gained 3/4 to 17 after the company announced it was merging with Interactive Pictures Corp. (IPIX).
PSINet Inc. (PSIX) lost 7/8 to 34-1/8. The company Tuesday acquired Australian ISP Zircon Systems Pty Ltd. It also reported a net loss of $1.35 a share, beating analysts’ estimates by 4 cents.
Also, Banc Boston Robertson Stephens reiterated its “buy” rating and $75 target.
Go2Net Inc. (GNET) gained 2-5/8 to 59. The company Tuesday acquired FreeYellow.com, a provider of Web building tools and hosting, for $19.5 million in stock and cash.
Finally, internet.com Corp. (INTM), which publishes this Web site, gained 1/4 to 18-5/8. William Blair & Co. reiterated its “long-term buy” rating.
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