Rate Worries Prompt Wall Street Meltdown

A sea of red ink swept over both blue chip and technology stocks Tuesday, leading to the single biggest one-day point drop ever for the Nasdaq Composite.

internet.com’s Internet Stock Index tumbled 43.40, or 4.73 percent, to 874.00, the Nasdaq Composite plunged 229.95 to 3,901.20 and the Dow Jones industrial average dove 359.58 to 10,997.93. Tuesday was the worst day for blue chips in more than a year.

Most of the leaders closed lower, including Broadcom Corp. (BRCM) off 17-15/16 to 255-3/16, Broadvision Inc. (BVSN) down 19-1/8 to 170-5/16, eBay Inc. (EBAY) lost 13-1/4 to 128 and Infospace (INSP) ended off 23-3/4 to 189.

Network Solutions Inc. (NSOL) gained 8 to 255-1/8, Priceline.com Inc. (PCLN) added 2-3/4 to 54 and Real Networks Inc. (RNWK) moved up 1-11/16 to 117-7/16.

Doubleclick Inc. (DCLK) plunged 30-15/16 to 237-1/16. Michael Kupinski of A.G. Edwards downgraded the stock to “maintain position” from “accumulate.”

Lycos Inc. (LCOS) lost 6-55/64 to 78-3/8 after the search engine announced it will float a secondary offering of up to 5 million shares.

E.piphany Inc. (EPNY) gave back 20-5/16 to 181-15/16. The company, whose software analyzes Web traffic data, plans to sell another 3 million shares.

A positive standout in the session was Satyam Infoway Ltd. (SIFY). American depositary receipts of the Indian ISP jumped 22 to 222 after the company opened a Web site for Indian professionals to advertise to consumers.

HealthCentral.com (HCEN) added 1-1/2 to 9-1/2. Lehman Brothers’ Robert Rouse initiated coverage of the provider of health information online with a “buy” rating.

Yahoo! Inc. (YHOO) lost 32 to 443. Schroder & Co. upped its target to $600 from $350.

America Online Inc. (AOL) lost 5-3/16 to 77-3/16 and Liquid Audio (LQID) jumped 5 to 31-1/8. The two companies Tuesday announced plans to integrate their online music systems.

American depositary receipts of New Tel Ltd. (NWLL) soared 23-9/32 to 31-1/2. The Australian telecommunications company formally announced plans to transfer 25 percent of its stock to Chinese news agency Xinhua Holdings Ltd.

AppNet Inc. (APNT) jumped 7-1/4 to 52-1/4. The online consultant teamed with MCIWorldCom (WCOM) to market systems to businesses with high-speed connections.

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