Investors may have been waiting to see if Federal Reserve Chairman Alan Greenspan would say anything of market relevance before continuing yesterday's late-session buying.
TheStreet.com Internet Sector
index was up 16.69, or 1.92%, to 885.91 in recent trading, pushing higher after Greenspan's speech wrapped up without him saying anything damaging to the market. The
was up 10.94, or 0.3%, to 3718.25.
According to the story that was going around, the market had feared the prospect of a strong employment report yesterday, along with a potential 50 basis-point increase by the Federal Reserve and any other possible threat that Alan Greenspan might present when he spoke today.
But, it turns out, the market had merely rebounded too quickly, and some earnings concerns over the past couple of days from
had put it on the defensive, providing an excuse for traders to take some profits. Expect this fickle market to continue its back-and-forth trade.
Among Internet stocks in the news,
was up 1 1/16, or 2%, to 58 1/4, after unveiling the management plan for its proposed merger with
. After the merger is completed, Steve Case will serve as the chairman and Gerald Levin will be the CEO. The companies also said that Bob Pittman and Dick Parsons were named co-COOs, while Ted Turner will take on the role of vice chairman and senior advisor, and, perhaps, manager of the AOL/Time Warner softball team (that's a joke, for all of you that don't remember his ill-fated attempt at managing the
was among the best-performing Net stocks, up 16 13/16, or 12%, to 162, after announcing a deal with
. The agreement calls for Nokia to integrate Web infrastructure software with mobile network operators' systems. The deal would bring together Inktomi's Traffic Server network cache with Nokia wireless technology. The companies will also work together to create software for third-generation wireless networks.
, which rallied 6 11/16, or 16.5%, to close at 47 1/4 yesterday, was down 7/16, or 0.9%, to 46 13/16 today. In his daily Internet insight column, analyst Steve Harmon wrote that there were rumors of a takeover by
, though he did not know whether there was any truth to the rumors.
There were a couple of stragglers on the earnings front that had reported since yesterday's close.
was up 3/16, or 0.8%, to 23 5/16, after it lost 14 cents per share in its first quarter versus the 16-cent loss estimate.
was up 4 15/16, or 9%, to 59. The interactive entertainment software company reported fourth-quarter earnings of 16 cents per share, which was two cents better than estimates. But reviews from market analysts were not good.
U.S. Bancorp Piper Jaffray
downgraded Electronic Arts stock to buy from strong buy. And, while not downgrading the stock,
Credit Suisse First Boston
analyst Lise Buyer wrote that the company would face a challenging six months as the entertainment software industry goes through transition. She wrote that "shareholders looking for near-term returns should consider alternatives," though she wrote it should generate "superior returns" over the next 12 to 24 months.
Sticking with the "Art" theme,
was up 3 1/4, or 5.7%, to 59 7/8. Credit Suisse First Boston analyst Brent Thill put out a note on the company after a meeting with company officials. He wrote that Art Technology's business was "extremely healthy one month into the quarter" and that it had already captured more than two "elephant-sized deals." He reiterated a strong buy on the provider of electronic business software.
Finally, shares of
were down 2, or 4.4%, to 43 1/4, despite the company announcing a 3-for-2 stock split.