ISDEX Off As Leaders Come Under Pressure

Internet stocks weren’t getting off to a good start in midday trading Monday as most of the leaders were trading lower and Internet brokers were being brought down after a profit warning from the Nasdaq’s biggest market maker.

Just before noon,’s Internet Stock Index was off 3.87, or .66 percent, to 581.60, the Nasdaq Composite was up 17.99 to 2,904.56 and the Dow Jones industrial average was up 46.54 to 10,696.30. Trading was lighter than normal due to the fact bond trading was closed for the Columbus Day holiday.

Winners included Broadvision Inc. (BVSN), up 5-3/8 to 177-3/8 on news Wal-Mart plans to use its products in its e-commerce initiatives.

Also among the leaders, Ariba Inc. (ARBA) was up 7-1/16 to 184-1/16, Juniper Networks (JNPR) had gained 13-1/4 to 226-1/4 , Yahoo! Inc. (YHOO) was off 7-3/4 to 184-3/8, Doubleclick Inc. (DCLK) was down 3-7/8 to 132-3/4, CMGI Inc. (CMGI) had lost 3-1/8 to 109-3/8 and America Online Inc. (AOL) was down 1-1/4 to 120-9/16.

Net2Phone (NTOP) was up 2-1/4 to 59-1/2 after announcing it will give telephone companies free equipment to help them handle IP phone calls.

Microsoft Corp. (MSFT) was down 3/16 to 94-3/4. The company Monday unveiled an electronic wallet that will store personal information to help facilitate e-commerce transactions. Inc. (PHCM) rocketed 22-25/32 to 202-23/32 after the company announced it had acquired an Irish maker of wireless application protocol products.

Finally, the e-finance sector was coming under pressure following a profit warning from Knight/Trimark Group Inc. (NITE). Knight, the Nasdaq’s biggest market maker, was off 4-23/32 to 25-1/4. The company, which handles the trades for many online brokers, said a drop in trades by retail investors will cut its third-quarter earnings substantially, bringing them below estimates.

Knight is expecting to report a profit of 17 to 19 cents a share, far below the 30 cents a share analysts had expected.

That news was putting Internet brokerages under pressure. Ameritrade Holding Corp. (AMTD) was off 1-1/8 to 18-5/8, E*Trade Group Inc. (EGRP) had fallen 1-1/4 to 25-5/8, National Discount Broker Group Inc. (NDB) was off 11/16 to 25-5/16 and Southwest Securities (SWS) was down 15/16 to 23-13/16.

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