Although it had been expected for months, the resignation of Treasury Secretary Robert Rubin Wednesday sent Internet stocks and all major U.S. market indices into a brief tailspin.
After being down more than 200 points after the announcement, the Dow Jones industrial average recovered to close down only 25.78 to 11,000.37, the Nasdaq Composite gained 39.31 to 2,605.99 and Internet.com’s Internet Stock Index posted a gain of 2.72, or .46 percent, to 595.41.
Shares of Lycos Inc. (LCOS) gained 8-3/4 to 107 after being as high as 111-3/4. The search engine Wednesday called off a merger with USA Networks and Ticketmaster Online-CitySearch.
CMGI Inc. shares lost 4-15/16 to 239-3/4 on the news. CMGI, one of Lycos’ largest shareholders, had opposed the plan. Shortly after the merger was announced, CMGI executives started campaigning against the deal, believing Lycos could have gotten a better offer.
One of the day’s biggest gainers was Portal Software (PRSF) whose shares jumped 9-3/8 to 41. Networking giant Cisco Systems Inc. Wednesday took a $39 million stake in the company, which makes billing software used by Internet providers.
Broadcom Corp. (BRCM) added 3-15/16 to 96-5/8. The communications semiconductor maker Wednesday unveiled a new chip it says will handle data 10 times quicker than speeds seen on today’s fastest copper networks.
Online jobs site CareerBuilder Inc. (CBDR) gained 3 to 16 on its first day of trading. The company Tuesday sold 4.5 million shares at $13, raising $58.5 million.
E-mail provider Critical Path Inc. (CPTH) shed another 4-7/8 to 71-1/2 on Wednesday. Shares took a tumble on Tuesday after the company filed to sell an additional 4 million common shares.
iTurf Inc. (TURF) gained 4-7/16 to 36-1/16. The online youth clothing retailer Wednesday signed a marketing deal with America Online Inc.
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