Net Stocks Gain Afternoon Steam

After a slow start this morning, Internet shares surged at the end of
trading.’s Internet Stock Index climbed 17.06, or 3.44 percent, to
512.63, the Nasdaq Composite gained 52.70 to 2,805.07 while the Dow Jones industrial average tumbled 41.16 to 11,324.46.

Net2Phone (NTOP)
had jumped 17 to 70-1/8. Long distance company Sprint Wednesday
announced it would use Net2Phone’s technology to offer voice-over-IP calls to Asia.

Also, Hambrecht & Quist’s Daniel Rimer Wednesday initiated coverage of
Net2Phone with a “buy” rating.

Nordstrom (JWN) fell 1/2 to 31. The company signed an agreement with the venture capital firm Benchmark Capital to build

Shares of E-Loan (EELN) jumped another
11-1/8 to 40-7/8 following a 27 percent run-up on Tuesday. On Tuesday, Bank
of America sold its unit to E-Loan in return for an
unspecified stake.

Efficient Networks (EFNT)
soared 16-5/8 to 54-5/8. The company signed a deal with XinJiang PTA to install an ADSL network in western China.

It was turning out to be a good day for sector leaders as the vast majority
were in the black. Gainers included Inc. (AMZN)
up 12-13/16 to 132-7/8, eBay Inc. (EBAY)
added 10-1/8 to 129, Inktomi
climbed 9-3/4 to 120, Versign
up 5-9/16 to 106-1/4 and Yahoo!
added 5-5/8 to 158-9/16.

PSINet Inc. (PSIX)
climbed 1-7/8 to 51-3/8 on the heels of Monday’s acquisition of
Transaction Network Services Inc.

Finally, online broker Web Street
filed for its IPO today. Fahnestock & Co. Inc. is the lead underwriter.

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