Profit-taking and a rise in bond yields were prompting a steep sell-off in the Internet sector Tuesday, putting the Nasdaq’s record streak in jeopardy.
internet.com’s Internet Stock Index had plunged 25.32, or 3 percent, to 820.06, the Nasdaq Composite was off 52.37 to 3,605.80 and the Dow Jones industrial average was off 19.57 to 11,173.02.
Most leaders were taking it on the chin, including Ameritrade Holding Corp. (AMTD) off 2 to 26, Amazon.com Inc. (AMZN) down 3-11/16 to 98-13/16, Doubleclick Inc. (DCLK) falling 3-7/8 to 194-5/8, eBay Inc. (EBAY) had tumbled 6-1/4 to 155-1/4, Go2Net Inc. (GNET) tumbling 8-11/16 to 91-3/8 and Infospace (INSP) was down 11-15/32 to 140-11/16.
Yahoo! Inc. (YHOO) was off 14-5/8 to 336-7/16 amid reports it is eyeing a broad distribution pact with Kmart Corp. (KMT). According to reports, Yahoo! may offer co-branded Internet access with Kmart that would be promoted on the retailer’s e-commerce site and in its stores.
Despite the widespread red ink, there was good news to be found and it was driving several Net stocks higher. Digital Island Inc. (ISLD) had leaped 13-1/4 to 143-3/8. Digital Island’s Sandpiper Networks unit expanded an existing deal with AOL to use Sandpiper servers which streamline content delivery.
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