widely expected to leave interest rates unchanged when it meets on Tuesday, the stock market has taken off. Internet stocks were participating in the rally, though without much gusto.
TheStreet.com Internet Sector
index was recently up 6.83, or 1.1%, at 653.95.
columnist Cory Johnson took a look at Net stocks and interest rates in a
piece earlier today.
Until the Federal Reserve is out of the way on Tuesday, and
reports earnings on Wednesday, the Internet sector could be in a state of flux.
Sentiment remains mostly positive, with the sector now in what is expected to be a strong fourth quarter, though it remains susceptible to overall market fluctuations. The sector also must get past Yahoo!'s earnings release Wednesday after the close and the stock's propensity to see profit-taking after its earnings.
In a note from September,
analysts point out that of the last 10 quarters, shares of Yahoo! peaked on or up to three days before the company's reporting date eight times. And of those eight, Yahoo! declined between 9% and 36% following the earnings release. The analysts add that the peak in the stock price has occurred before the earnings release in each of the last five quarters.
Despite besting earnings estimates by six cents in the third quarter of 1998, Yahoo! declined by 13% soon after its report, according to PaineWebber, though it did bounce back and push sharply higher in the coming months. In recent trading, Yahoo! was off 2 11/16, or 1.5%, at 172 3/4.
, a strong percentage gainer on the Nasdaq, was up 1 5/8, or 16%, at 11 11/16. There was no real news on the company, though it apparently was mentioned on a television program over the weekend.
was up 4 9/16, or 8%, at 57.
reported that the company and
had reached a deal to offer a prepaid virtual calling card to route telephone calls over Net2Phone's Internet protocol network. The stock shot up after the news was reported on
around 1:10 p.m. EDT. AOL was up 1/2, or 0.5%, at 108 3/8.
was up 1 21/32, or 1.2%, at 139 7/8.
looked at the potential of large-size sales of the stock by insiders in a
piece on the site earlier today.
On the downside,
was off 2 11/16, or 4%, at 66 7/16. The stock has suffered since
officially launched its Web-hosting business last