Internet stocks closed strong, much like the rest of the technology sector. Some traders were still spooked by yesterday's slide and took advantage of an early rally to take profits on certain issues. But many names ended on the plus side as the sector recovered along with the Dow and other tech issues.
TheStreet.com Internet Sector
index, or DOT, closed up 38.71, or 3.1%, at 1288.01, an all-time high, though it traded as low as 1211.13 early in the session. The
finished up 49.33, or 1.0%, at 4897.17 after trading 125 points lower at one point in the session. A recovery in the Dow and a drop in crude-oil prices helped technology, though the 60-point gain in the Dow does not even begin to make up for yesterday's 374-point loss.
Traditional Internet plays enjoyed some success.
closed up 5 5/8, or 3.3%, at 177;
finished up 21 3/16, or 13%, at 185; and
continued its run, up 7 5/8, or 11%, at 74 3/4.
Some of eBay's strength could be stemming from comments the company made at the
technology conference, duly
reported by our crack staff. Lycos, meanwhile, was benefiting from Tuesday's news that it would team with
to provide free multimedia tools.
, another traditional Net play, closed up 8 15/16, or 11%, at 87 9/16 following its analysts' day yesterday.
First Union Securities
upgraded priceline to buy from hold.
closed up 22 3/16, or 13%, at 190 5/8, and
closed up 6 1/2, or 2%, at 331 (though it traded as high as 366 11/16) after the two companies and
formed a B2B
alliance. The companies plan to offer and sell an integrated technology to meet the needs of businesses that seek to capture a part of the B2B e-commerce marketplace. Currently they have developed technology for three areas: full-service marketplaces, an integrated supply chain and a range of open services. As part of the alliance, IBM will make minority equity investments in both i2 and Ariba. IBM's 2 3/4-point gain following the news was a factor in the Dow's recovery.
closed up 25 1/4, or 13%, at 214 1/4 after
reinitiated coverage of the Internet incubator with a buy rating and 378 price target. J.P. Morgan has done underwriting for Safeguard Scientifics.
, which also appeared at the Chase H&Q tech conference, closed up 14 9/16, or 9%, at 172 13/16.