Talk about having second thoughts. First, the stock market had a little more time to ponder yesterday's 50-point rate hike by the
and decided the news was not particularly good. Second, investors who rode shares of
higher on rumors that it would merge, have bailed en masse now that the event has come to pass.
closed down 72.66, or 2%, at 3644.91, erasing much of yesterday's 110-point gain.
TheStreet.com Internet Sector
index ended down 16.04, or 1.7%, at 913.58.
Lycos was a disaster the
said it would buy the search engine for $12.5 billion. It closed down 15 1/64, or 20.7%, at 57 39/64. Lycos was
downgraded by a couple of firms. Investors who had bought on rumors of a deal were unsure what to make of the downgrades or the merits of the deal and got out with whatever profits they could. Terra, meanwhile, ended down 6 9/16, or 12.3%, at 47.
While the sector was weak on the whole, there were some bright spots, particularly among some of the more traditional plays.
closed up 2 3/16, or 1.6%, at 137 13/16 in advance of an analysts' day tomorrow.
closed up 1 15/16, or 3.3%, at 61. And
finished up 1 1/8, or 18%, at 7 3/8. However,
closed down 6 3/4, or 5%, at 128 1/8 and
ended off 3 3/8, or 6.2%, at 50 11/16.
Business-to-business plays have been among the most volatile in the sector of late, outperforming on the way up and dropping more than the rest on weakness.
fell 2 1/4, or 5%, to 42 1/8;
dropped 3 1/16, or 6.4%, at 45; and
slipped 3 3/8, or 4.5%, to 70 15/16.