Internet stocks were slumping in midday trading as volume continued to be extremely light, exaggerating selling occurring in the sector.
One of the day’s standouts was Internet Capital Group (ICGE), which had soared 7-3/8 to 60-7/8.
The company, which invests in Internet start-ups, was rated near-term “accumulate” by Merrill Lynch’s Henry Blodgett who initiated coverage Monday.
EarthLink expects to add 230,000 new members in the third quarter and 370,000 in the fourth qurater.
Internet brokers continued to fall as a report about increasing marketing spending continued to weigh on that sector. E*Trade Group Inc. (EGRP) had fallen 1-3/8 to 24-9/16, National Discount Broker Group Inc. (NDB) had slumped 2-3/4 to 31-3/4, DLJdirect (DIR) was off 1/2 to 17-15/16 and Southwest Securities (SWS) had tumbled 1-3/16 to 34-5/16.
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