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Net Stocks Meander in an 'Unfigureoutable' Market

Bears have finally been able to give the bulls a good battle over the past couple of sessions, though the head-banging is far from over and it's going to take awhile longer before a victor emerges. Internet Sector

index, or DOT, closed down 14.84, or 1.3%, at 1139.60. The DOT seemed to find support ahead of its recent low of 1123.97 from Feb. 7, trading as low as 1125.62 today. Traders concerned that the technology sector remains due for a selloff took advantage of an early pop to get out, while strength in the bond market and gains in the broader market provided some underlying support. The market does face a number of obstacles this week, including

Federal Reserve


Alan Greenspan's

Humphrey-Hawkins testimony.

"Don't try to figure it out," said one market participant. "It's unfigureoutable."

There were some late fireworks in the Net sector after


David Faber

reported "exclusively" that

America Online


was in talks to buy


TheStreet Recommends


stake in



. Net2Phone, a software-maker for phone calls over the Internet, was trading lower before the


report a little after 3:30 p.m. EST. It traded as high as 68 3/8, and then finished up 11 3/4, or 24%, at 60 3/4. (IDT closed up 6 5/8, or 30%, at 29 1/2.)

IDT currently owns 48% of Net2Phone's common stock and has 58% voting control. AOL owns 5% of the stock, so a buyout would give AOL more than 50% ownership in the stock. But note that AOL just signed a couple of deals with Net2Phone that won't expire for a couple of years, so it may be a little premature to say AOL would be interested in buying out the company at this time. Last quarter, Net2Phone signed a three-year agreement to provide Internet telephony services to AOL's registered Instant Messenger users. It also signed a two-year agreement to provide Net2Phone Internet telephone calling-card services to



And while there was speculation surrounding Net2Phone, there were a number of deals that actually were completed and announced today.



was at it again, announcing it would purchase

Medical Manager


and the 31% stake of



that Medical Manager does not own. Healtheon/WebMD finished up 1 13/16, or 3%, at 56 5/8, while Medical Manager ran up 18 1/16, or 28%, at 86 3/4 and CareInsite gained 2, or 3%, to 72.



also remained an active purchaser on

news it would be buying


, a privately held provider of Internet and e-commerce professional services, for $920 million in stock and cash. CMGI closed up 3 1/2, or 3%, at 115 1/2.



closed down 2 7/16, or 2%, at 118 1/2. The company said that it had acquired

, a wireless-messaging-services company, for around $850 million in stock.


i2 Technologies


closed up 19 3/8, or 8%, at 259 7/8. The company said it had formed a joint venture with

United Technologies

(UTX) - Get United Technologies Corporation Report



(HON) - Get Honeywell International Inc. (HON) Report

to provide a Web site for aerospace products and services.


InterNAP Network Services

(INAP) - Get Internap Corporation Report

, which provides fast Internet connections to avoid congested public access points, closed up 10 1/2, or 18%, at 69 7/8. We found no news to account for the move, though it could be seeing some ripple effects from last week's incidents involving cyber vandals who crippled a number of sites by bombarding them with requests.