The Dow Jones Industrial Average was not able to sustain gains in the days after trading above 10,000 for the first time. And the Nasdaq Composite Index did not close above 3000 after its first foray into that territory. Like these two heavyweights, TheStreet.com Internet Sector index was unable to hold above 1000 after breaching that level today for the first time.
The DOT closed down 16.21, or 1.6%, at 969.40 after reaching a high of 1008.98 around midsession. While the index is certainly not the tell-all for the Internet sector, it appeared as if traders began to take some profits after the DOT broke the 1000 level.
And who could blame them? The index has gained roughly 200 points since Nov. 12, when it was trading at 808.77. Technicians have claimed the sector has been
overbought for some time, though investors continued to pour money into Net stocks. In addition, Net stocks got a lot of mileage from the preholiday shopping season hype, particularly if you consider that analysts have been looking ahead to the holidays since
August. The market finally began to pay attention to interest rates, which
rose again today.
And while most reports indicated a solid start to the season for e-tailers,
Henry Blodget reported that online sales were "very strong" but "not extraordinary." He also claimed that reported numbers from
for the first 12 hours of the holiday season projected strong revenue for the holidays, "but not amazing."
Amazon ended the day down 2 11/16, or 2.9%, at 90 7/16. But other e-tailers performed well.
finished up 7/16, or 0.7%, at 67 1/16, though it traded as high as 70 33/64.
ended up 2 1/8, or 16%, at 15 7/16 and
closed up 1 11/16, or 8%, at 23 1/16. Also of note,
, an Internet-based luxury-goods retailer that soared 76% on Friday after a
analyst plugged the stock, closed down 4 1/2, or 18%, at 20 3/87 today.
Other notable gainers included
, which finished up 8 7/8, or 6%, at 155 1/2, though it traded as high as 170 3/4. The company got some positive press in
The New York Times
on Sunday. In addition, CMGI's
, an online investing and financial site.
And those connected with the new
tracking stock also benefited. The stock, which will go under the NBCI ticker, begins trading on Tuesday.
closed up 17, or 24%, at 88 1/2, while
portal also will be incorporated into NBCI, closed up 1, or 1.8%, at 55 1/2.
closed down 8 5/16, or 6.6%, at 117 15/16. The company said it intends to raise $500 million through private offerings of senior notes and convertible subordinated notes.
Online brokerages were mostly weaker due to rising interest rates, despite a note from
Credit Suisse First Boston
that, while bullish in scope, came with a warning. Analysts noted that trading volumes of online brokerages surged to record levels in November. Average trades of 296 million were up 44% for the month vs. October.
Analyst James Marks wrote that short-term trading trends "should prove beneficial for the online brokerage stocks, irrespective of current valuations or performance trends." But at the same time, Marks indicated that trading in online brokerage stocks based on short-term trading volume was "a fool's game that ultimately leads to losses." He wrote that he prefers to focus on "the underlying economics of accounts and relationships, the acquisition costs of those relationships, and the returns being generated."
finished down 1 1/16, or 3.3%, at 30 7/8, while
ended down 1 1/16, or 4.3%, at 23 7/16, and
closed off 1 5/8, or 4%, at 38 3/8.