Last week, there were fears that the Dow's drop below 10,000 would eventually weigh on technology stocks. Today, there were fears that traders were taking profits in tech and searching for bargains in blue-chip issues. In the end, the Dow finished off its highs and the Nasdaq finished lower, though up from its lows for the day.
Despite being down more than 124 points at one point today, the Nasdaq ended the day down only 12.65, or 0.3%, at 4577.85. Internet stocks lagged, as investors have been shifting to hotter areas of tech, but closed off their lows.
TheStreet.com Internet Sector
index finished down 21.56, or 1.8%, at 1154.55, though it traded as low as 1140.71.
TheStreet.com New Tech 30 finished down 5.73, or 0.7%, at 776.39.
Two drags on the DOT were
. Yahoo! closed down 3 1/4, or 2%, at 161 15/16 on
news that it was involved with
on a possible content alliance. Investors feared if such a deal were announced, Yahoo! could suffer a similar fate to
since it announced a merger with
Likewise, eBay was rumored to be involved in a deal to buy downtrodden
, which was denied by eBay, though the stock still closed down 5 3/4, or 4%, at 65 3/4.
AOL closed up 1, or 2%, at 60 5/8 on news that it planned to develop a version of its instant-messaging software for use in
mobile phones. It was one of a number of wireless deals announced
today. In addition,
became the latest firm to jump on the AOL bandwagon, reiterating a strong buy rating on the stock and a price target of 115.
closed down 3 3/8, or 5%, at 65 3/4 despite news that it had created a new Web portal that would facilitate shopping over the Internet from a handheld device. The company took yet another shot from
, which questioned whether the online retailer's business model was working. The company indicated that revenue per customer was flat at best or declining.
Finally, beleaguered online brokerages found a smattering of relief after
raised its revenue and earnings estimates for
, indicating the company was having an "explosive quarter." Analyst Gregory Smith wrote that E*Trade's stock price had become "disconnected from the underlying fundamentals." Shares of the company closed up 5/8, or 3%, at 22 7/8, though they traded as high as 23 49/64. Rival
ended up 3/4, or 5%, at 16 1/8. Chase H&Q has done underwriting for E*Trade.