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Bonds Rebound but Net Stocks Still Can't Find Relief

Even news of a deal between heavyweights eBay and AOL couldn't help boost the sector.

Interest rates' upward march has squeezed Internet stocks in recent sessions, but a reversal in the bond market Tuesday failed to provide relief for Net stocks. Internet Sector

index was down 8.47, or 1.5%, at 543.33 in early trading. Despite the drop, the DOT has now given back roughly 38% of the 150-point gain it made between Aug. 5 and last Thursday.

The sector continued to take its cue from the bellwether stocks, which remained mired in a slump.


, which dropped 9 1/4 points on Monday, was down an added 5 1/4, or 4.5%, at 114.



was off 3, or 2%, at 140 13/16.

Even news of a deal among heavyweights




America Online


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was not enough to help the sector. The companies launched a co-branded site designed to provide AOL members access to eBay's site in an AOL format. The venture marks the latest in a series of joint efforts between the two companies. eBay traded as high as 122 on the open, but was recently down 2, or 2%, at 117 7/16. AOL was off 2 7/16, or 2.6%, at 90 13/16.

Supply has been a concern in the Net sector and there was news late Monday that

Portal Software


filed with the

Securities and Exchange Commission

to sell up to 5 million shares. Portal, which develops and sells real-time Internet business infrastructure software, will offer 2 million shares and stockholders will offer 3 million. The stock went public in May.


Beth Kwon

examined the initial public offering market in a

piece Tuesday.

On the upside,


was up 3 9/16, or 25%, at 18 9/16. The online retailer of professional books unveiled an


program, a digital publishing model that allows publishers and authors to publish and sell works online.