SAN FRANCISCO -- Interest-rate jitters continued to drag down the Internet sector. After a brief early push higher, Net stocks closed mostly lower, though losses were not as extensive as in recent sessions.
TheStreet.com Internet Sector
index closed down 6.35, or 1.1%, at 556.09, leaving it more than 35 points lower on the week. The DOT traded in positive territory briefly this morning, but spent much of the day on the downside.
There were further interest-rate concerns with Treasuries once again trading
lower. Fears that the Fed will raise interest rates again in August were sparked on Thursday following a strong
Employment Cost Index
report. Internet stocks are hurt by rising interest rates because the present value of their future earnings falls as rates rise.
As could be expected, many of the interest rate-sensitive Net stocks continued to post losses today.
closed down 1 13/16, or 6%, at 29 1/16, while
finished off 1 3/4, or 7.5%, at 21 1/2. Online brokerages also remained weak.
ended down 1 7/8, or 6%, at 30 1/8, while
closed down 1 3/4, or 7%, at 24 15/16.
And there was no relief for the beaten up Net bellwethers.
was reporting late in the day that there were rumors that
would be printing a negative story on
. AOL finished down 3 1/2, or 3.5%, at 95 1/4.
closed down 4 9/16, or 4.5%, at 97 11/16 and
closed down 4 15/16, or 6%, at 75 9/16.
also continued to suffer, closing down 5 3/16, or 7.7%, at 62 1/4.
reported today that the company today denied claims that it had a monopoly over Internet domain names. On Thursday, the
said it had begun an informal investigation into Network Solutions' licensing contracts over the registry of Internet domain names.