Internet Sector Recovers From Lows but Still Shy of Positive Territory - TheStreet

Internet Sector Recovers From Lows but Still Shy of Positive Territory

While the Dow rises, Net indices follow the Nasdaq lower as traders take profits.
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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

Nasdaq

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

James Cramer

was playing the reversal of fortunes in an earlier

piece.

Thank God we had

CNBC

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,

eBay

(EBAY) - Get Report

had shown only a marginal recovery after denying reports that it would buy downtrodden

Sotheby's Holdings

(BID) - Get Report

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.

Yahoo!

(YHOO)

also has been unable to recover from news that it was in talks about an alliance with

News Corp.

(NWS) - Get Report

. 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

America Online

(AOL)

after its ill-received merger with

Time Warner

(TWX)

.

Elsewhere, a number of stocks that were big movers on Friday were at it again.

Commerce One

(CMRC)

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

FreeMarkets

(FMKT)

, however, was down 5 1/4, or 3%, to 186 3/4 after dropping 18 points on Friday. But

i2 Technologies

(ITWO)

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

Goldman Sachs

.

Also,

Internet Capital Group

(ICGE)

, 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,

Comcast

(CMCSA) - Get Report

and

General Electric

(GE) - Get Report

, recently filed to sell portions of their holdings. First Union has not done underwriting for Internet Capital Group.