Technology stocks have taken a break despite, or perhaps due to, strength in blue-chips.
TheStreet.com Internet Sector
index was down 22.17, or 1.9%, to 1153.94, though it had traded as low as 1140.71.
TheStreet.com New Tech 30 was down 8.6, or 1.1%, to 773.52. The Net indices have followed the
lower as traders were taking profits after last week's tech run-up. The
Dow Jones Industrial Average
was up about 150 points. Check out how our own
was playing the reversal of fortunes in an earlier
Thank God we had
to tell us that traders in tech were not panicking. If we have learned anything over the past few months, it's that any setbacks like these last a day or two and nearly always provide a buying opportunity. And even an earlier 100-point loss in the Nasdaq was only a 2% move. We're not suggesting that today's losses will not develop into something more severe, but those that have bet on a major correction in tech of late have been burned.
Among Internet stocks,
had shown only a marginal recovery after denying reports that it would buy downtrodden
for $1.6 billion. eBay was down 6 5/16, or 4%, to 144 1/2, near session lows of 142 7/8. Sotheby's was up 1 1/8, or 6%, to 20 5/8, though it had traded as high as 25 3/16.
also has been unable to recover from news that it was in talks about an alliance with
. Yahoo! was down 8 11/16, or 5%, to 156 1/2 in recent trading, as investors were perhaps sensing that Yahoo! would meet a fate similar to that of
after its ill-received merger with
Elsewhere, a number of stocks that were big movers on Friday were at it again.
continued to bask in the glow of the announced
deal between the Big Three automakers to create an online supply network. It was up 5 7/8, or 3%, to 219 15/16. Rival
, however, was down 5 1/4, or 3%, to 186 3/4 after dropping 18 points on Friday. But
was up 18 9/16, or 12%, to 168 7/8 after dropping 25 7/8 on Friday. i2 is expected to hold an analysts' day on Tuesday, according to a note from
Internet Capital Group
, which dropped 12 points on Friday following its quarterly report, was down another 7 7/8, or 7%, to 99 1/4 today. There was some concern over the company's statement that indicated it expected losses to continue in coming quarters. In a note on the company's report,
First Union Securities
analyst Charles Wittman indicated that the weakness in the stock of late was not related to company fundamentals, but to early stage investors selling shares in the company. He noted that two major Internet Capital Group investors,
, recently filed to sell portions of their holdings. First Union has not done underwriting for Internet Capital Group.