Nasdaq Recovers As Bond Slump Hurts Blue Chips

Internet stocks managed to post a small gain on a day that saw the Dow battered by a slump in bond prices and the Nasdaq fail to make the push into positive territory.’s Internet Stock Index closed up 7.45, or 1.37 percent, to 552.31, the Nasdaq Composite ended off .58 to 2,815.94 and the Dow Jones industrial average slumped 120.32 to 10,349.93.

[email protected] (ATHM) gained 3/4 to 39-13/16. The company announced Monday it is buying online greeting card provider Blue Mountain Arts for $780 million in stock and cash. Also, Late Monday GTE Corp. (GTE) announced it was suing AT&T Cable Services and affiliated service providers, accuing the companies of illegally forcing cable modem subscribers to buy @Home’s ISP service.

One of the day’s biggest movers was Digital Island Inc. (ISLD), soaring 15-11/16 to 38-11/16 after announcing a merger with Sandpiper Networks valued at $621 million. Inc. (STMP) closed up 1-3/8 to 39-1/2 after purchasing in a deal worth about $300 million.

CMGI Inc. (CMGI) gained 4-1/8 to 107-1/4. The company’s AltaVista unit Monday unveiled a redesigned version of its search engine and added new personalization features.

24/7 Media (TFSM) fell 1-7/16 to 44. The Internet advertising company Monday launched 24/7 Latino, a new ad network targeting Latin America.

America Online Inc. (AOL) slumped 1-5/8 to 118-3/4. The company Monday announced its worldwide subscriber base had passed 19 million.

Lycos Inc. (LCOS) gained 1-1/4 to 57-1/2. The company Monday unveiled LycosShop, an interated commerce destination. Lycos will receive a transaction fee ranging from 1.5 to 5 percent for each item sold through the online storefront.

Introducing Internet StockTracker, the new weekly e-mail newsletter from Corp. Every Friday will deliver to your e-mail
in-box the latest performance data on individual Internet companies and
their competitors. Internet StockTracker will deliver to you all the
statistics you need to assess the week’s activity.
Subscribe today and receive the Charter Rate of $157 — a savings of
$70 off the regular subscription price!

News Around the Web