DOT Closes Higher, but Many Nets See Red

TheStreet.com Internet Sector index inched up on solid performances from a very select few Internet stocks.
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Sure, TheStreet.com Internet Sector index tacked a few points on to Friday's record close. But there was an awful lot of red on those trading screens that included Internet stocks.

The DOT edged up 16.10, or 1.6%, to close at another record of 1044.64. But gains in the index reflected strong performances in only a couple of stocks, most notably

Yahoo!

(YHOO)

and

Inktomi

(INKT)

. Profit-taking after the ongoing rally left many other issues marginally lower.

Yahoo!, which will be added to the

Standard & Poor's 500

after the close tomorrow, finished up 27 13/16, or 11%, at 280 13/16. Inktomi, which said it would split its stock 2 for 1 on Friday, added another 13, or 9%, at 158 after gaining close to 20 points on Friday. Both are members of the DOT.

But not all was positive in Internet world. Online financial stocks were tripped up by news that

U.S. Bancorp's

fourth-quarter earnings would fall short of

expectations.

TheStreet.com E-Finance

index finished down 1 15/32, or 1.9%, at 77 1/8.

The biggest story of the day involved

AT&T

(T) - Get Report

, which said it would be granting access to

MindSpring Enterprises

(MSPG)

to use its high-speed cable lines after 2002.

MindSpring ended up 3 11/16, or 11%, at 36, while

EarthLink

(ELNK)

, which is merging with MindSpring, closed up 4 7/16, or 8%, at 57 13/16.

Excite@Home

(ATHM) - Get Report

, which currently has access to the lines and is partly owned by AT&T, closed down 3 1/16, or 6%, at 49.

America Online

(AOL)

, which also has a vested interest should AT&T open its lines to all ISPs, closed up 2 7/16, or 3%, at 80 13/16.

Among the

Red Hots,

Red Hat

(RHAT)

closed up 31 1/8, or 16%, at 232 1/8 on news that

Dell

(DELL) - Get Report

would factory-install Red Hat's Linux on its entire server line.

And

VeriSign

(VRSN) - Get Report

ended up 30 3/4, or 15%, at 236 11/16 after

Dain Rauscher Wessels

reiterated its strong buy rating and raised its 12-month price target on the stock to 250. Analyst Stephen Sigmond indicated the company had "strong momentum across all business lines." Dain Rauscher Wessels has done underwriting for VeriSign.