Internet stocks remained on the south side of unchanged in midafternoon, finding little relief as the major indices slid on the first day of the feared month of October.
TheStreet.com Internet Sector
index was recently down 10.12, or 1.6%, at 637.26.
focused on October and the pitfalls it brings to the market, and in particular the technology sector, in an earlier
was off 2 3/16, or 3%, at 77 3/4. Some of the selling may have been attributed to a story in
The Wall Street Journal
today that focused on an overhauled
Web site, which the story indicated would be focused on toys and electronics. The story quoted an analyst as saying the Wal-Mart redesign "will be the shot heard round the world." It is expected to be up and running in time for the holiday season.
Among other stocks in the news,
was up 1 1/4, or 8%, at 16 1/8.
initiated coverage of the downloadable music company with a strong buy rating and a 12-month price target "in the mid-to-high 20s." ING Barings has done underwriting for Emusic.com.
has come to the defense of
, which dropped sharply on Thursday in response to news that
was starting a new real-estate Internet portal.
Merrill, which has done underwriting for Homestore.com, wrote in a note today that the market response was "overdone," and it does "not view Cendant as a significant threat to Homestore." Merrill's Blodget said Cendant would only have access to about 30% of the real-estate listings nationwide, which he claims "is a far cry from Homestore's 93%," and that will "inhibit Cendant's ability to challenge Homestore.com as the market leader."
were up 1/2, or 2%, at 26 7/8 after
upgraded the stock to buy from outperform. Wit, which has done underwriting for uBid, said the online auction site featuring closeout and refurbished products was trading at "a substantial discount" to other e-commerce companies in its coverage universe. Wit analyst Ryan Alexander said the company generated $48.9 million in a recent secondary and that the new funding should enable the company to improve brand awareness in the fourth quarter.
Also bouncing back today was
, up 1 7/16, or 7%, at 23. The stock slid on Thursday after the company said third-quarter earnings would be worse than expected.