One positive impact from Y2K fears -- the
announced that it was not raising interest rates.
Internet stocks were in rally mode after the Fed's announcement.
TheStreet.com Internet Sector
index was up 46.65, or 4.3%, at 1145.46. Among stocks in the news,
was up 4 7/8, or 8%, at 67 1/4, though it traded as high as 83 1/4. Gains came on news that its electronic commerce operations would be acquired by
, a new sporting-goods shopping Web site.
joint newsroom took a look at the deal in an earlier
The Fed's Open Market Committee announced it has not changed interest rates and also left a neutral bias, giving the green light to investors to buy. There was much speculation that the Fed would adopt a tightening bias. Among
B2B plays in the news,
was up 16 7/8, or 6%, at 303 1/8 after announcing an alliance with
, a provider of cable broadband online service. Akamai technology will be used to enhance the delivery of Internet content to broadband subscribers over the Road Runner network.
Application service provider
, which split 3 for 2 after Monday's close, was up 18 7/8, or 43%, at 63 1/2 post-split today. USinternetworking seemed to benefit from positive comments from
Credit Suisse First Boston
, which reiterated a buy rating on the stock. CS First Boston analysts indicated that the company's fourth quarter was in "good shape" and revenue could be above their estimates.
, the tracking stock for
online ventures, was up 5 7/8, or 27%, at 27 3/4 after an upgrade from
Schroeder & Co.
Analyst Arthur Newman raised the rating on the stock to outperform significantly from perform in line and established a price target of 33. Newman wrote that the stock was oversold, trading at a significant discount to its peers and poised for a turnaround.
Also benefiting from analysts' coverage was
, the tracking stock for NBC Internet ventures.
Deutsche Banc Alex. Brown
initiated coverage of the stock with a strong buy rating. The stock was up 10 3/8, or 13%, at 89 3/8.
Also getting a boost from initiation of coverage was
, a business-to-business provider of Internet-based travel procurement.
Salomon Smith Barney
, an underwriter for the GetThere.com IPO last month, initiated coverage with a buy rating. It was up 10 31/32, or 35%, at 42 7/32.
mentioned stocks that could benefit after the end of their quiet period earlier this month.
We noted rumors that were surrounding
last week, and something big did happen to the company today -- it was
bought out. A group of investors, including Hollywood executive
Chairman Gary Wilson and a former top
executive, said today that it would acquire the catalog and online retailer of computer products for about $725 million. Under terms of the agreement, Micro Warehouse shareholders will receive $19 in cash for each Micro Warehouse share they own. It was up 2 7/8, or 19%, at 18 1/8 in recent trading.