Stocks Lose Steam Following Fed Bias Change

As expected, the Fed left interest rates unchanged although the board adopted a bias towards tightening which means another rate hike may be near. While stocks as a whole ended mixed, Internet shares were able to post strong gains.

internet.com’s Internet Stock Index was up 10.77, or 2.04 percent, to
538.48, the Nasdaq Composite rose 3.09 to 2,799.06 and the Dow Jones
industrial average was down 9.82 to 10,391.41.

Foundry Networks (FDRY)
surged 27-3/4 to 163-1/2. The company develops high-end networking
products. Foundry announced that its revenues for its latest quarter will
exceed Wall Street expectations.

Concur Technologies (CNQR)
plunged 20-1/16 to 12-13/16. The company, which provides e-commerce
solutions, said it will fall short of next quarter’s Wall Street
expectations on its revenues. The company has experienced delays in orders
from customers.

Efax.com (EFAX)
climbed 2-1/8 to 11-1/2. The company will provide its unified
messaging services to Microsoft’s WebTV.

America Online Inc. (AOL)
was up 4-9/16 to 113-11/16. The company introduced version 5.0 of its
access software.

As for the Net leaders, Ariba Inc. (ARBA)
was up 1-7/8 to 164-3/4, Juniper
Networks
(JNPR)
climbed 1-7/8 to 184, Lycos (LCOS)
rose 4-1/4 to 56-1/2, Doubleclick
Inc.
(DCLK)
was higher by 8-13/32 to 122-9/16, Verisign Inc. (VRSN)
was up 9-1/2 to 112-3/8 and Inktomi
Corp.
(INKT)
had gained 3-13/16 to 118-7/8.

Preview Travel (PTVL)
gained another 2-7/8 to 27-3/16 on top of Monday’s 38 percent climb.
Investors continue to applaud the company’s merger with Sabre’s
Travelocity.

NetObjects (NETO)
was up 1/4 to 7-3/16. The company acquired Sitematic, which helps
small businesses with e-commerce. The price tag was $14.7 million.

Beyond.com Corp. (BYND)
was up 1-3/16 to 13-3/16. The company announced plans to create a new
area on its online store that will focus on handheld Net devices.

Drugstore.com (DSCM)
had jumped 4-1/2 to 43-1/2 after Thomas Weisel Partners’ Chris Vroom
initiated coverage with a “buy” rating and set an $80, 12-month price
target.


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