Even the Fed Can't Stop Technology - TheStreet

Even the Fed Can't Stop Technology

The Nasdaq posts another triple-digit gain, led by tech and with Internet stocks tagging along for the ride.
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Though he has power that some say surpasses even that of President Clinton (OK, he has more power), Alan Greenspan has been unable to stop technology. Despite some hawkish comments from the Federal Reserve chairman, tech rolled along, with the Nasdaq posting another triple-digit gain.

Internet stocks tagged along for the ride.

TheStreet.com Internet Sector

index closed up 17.98, or 1.6%, at 1144.49, while

TheStreet.com New Tech 30 finished up 16.51, or 2.3%, at 725.35.

Some of the beleaguered traditional Net names managed to climb into the plus column today.

America Online

(AOL)

closed up 1 1/4, or 2.4%, at 53. Gains must have been in response to a press release the company put out stating that AOL members would have "exclusive" first view of the "cover" for the upcoming

Sports Illustrated

swimsuit issue.

Sports Illustrated

is published by

Time

, a subsidiary of

Time Warner

(TWX)

, which is merging with AOL. If anything, however, the news was not comforting to AOL shareholders, many of whom have been hoping the deal would somehow get canceled, as AOL has plummeted since it was announced.

Also,

eBay

(EBAY) - Get Report

finished up 4 9/16, or 3.2%, at 145 1/4;

Yahoo!

(YHOO)

closed up 1 5/8, or 1.0%, at 163 3/16; while

priceline.com

(PCLN)

ended up 2 1/16, or 3.9%, at 55. Even

eToys

(ETYS)

managed to close higher, up 1 7/8, or 14%, at 15 1/2, though gains came after

Salomon Smith Barney

began coverage of the stock with an outperform rating.

Amazon.com

(AMZN) - Get Report

failed to share in the wealth, closing down 1 11/16, or 2.4%, at 69.

While Amazon has seen a gradual price decline during much of February,

DoubleClick

(DCLK)

took just one day to drop more than 15 3/4, or 15%, to 90 3/4. Losses came on news that the

Federal Trade Commission

and New York Attorney General's Office had launched informal investigations into DoubleClick's data-collection policies with regards to privacy rights. It wasn't a surprising reaction, as Internet investors are accustomed to reacting first and asking questions later, but our own

George Mannes

did present a

case for why the investigation may not have long-term implications.

DoubleClick's competitors fared better, though both dropped sharply yesterday when news of the investigations broke and trading in DoubleClick was halted.

24/7 Media

(TFSM)

closed up 2 1/16, or 4.6%, at 47 1/8 after declining eight points yesterday, while

Engage Technologies

(ENGA)

ended up 10 7/8, or 10%, at 117 7/8, after dropping 14 points yesterday.

Elsewhere,

FreeMarkets

(FMKT)

was another big decliner, dropping 23 5/16, or 10.7%, to 193 11/16. There was no news to account for the losses and traders may have been taking profits as the stock has run up.

On the upside was

Ion Networks

(IONN)

, up 5 1/8, or 16%, to 37 1/8 following some positive comments on

CNBC

.