Selloff Continues in Net Sector This Morning - TheStreet

Selloff Continues in Net Sector This Morning

TheStreet.com Internet Sector index was in the red, but it had rebounded slightly from an early session low.
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SAN FRANCISCO -- Internet stocks were backtracking early today with last week's market slide still fresh in traders' minds.

TheStreet.com Internet Sector

index was lately down 5.85, or 0.9%, at 679.25, though it traded as low as 673.18 this morning. Gains in the

Dow

were also helping to lift the

Nasdaq

out of its slump.

Among stocks in the news,

America Online

(AOL)

was recently up 15/16, or 0.9%, at 109 15/16 on news that it told some analysts that it had had added 950,000 subscribers in its fiscal first quarter. That was above the 850,000 estimate that

Merrill Lynch

said it had anticipated. AOL is expected to report earnings of 13 cents a share for the quarter when it reports Wednesday, according to

First Call/Thomson Financial

, though Merrill analyst

Henry Blodget

wrote that a penny or two upside was possible.

Ameritrade

(AMTD) - Get Report

was up 1/16, or 0.4%, at 17 3/8.

Hambrecht & Quist

(HQ)

, the tech investment bank that has been gobbled up by

Chase Manhattan

(CMB)

, today announced plans to start distributing its lead-managed IPOs and other equity offerings through Ameritrade.

TSC

reported on the agreement on

Friday.

Also among online brokers,

E*Trade

(EGRP)

was off 3/16, or 0.8%, at 24 7/8.

Reuters

reported that the company would offer high-speed Internet access to its most active investors. Traders who place more than 30 trades each quarter will be offered access through

SBC Communications

(SBC)

. E*Trade also said that it had expanded a licensing agreement in Germany with the creation of a new joint venture

E*Trade Germany AG

, which will include

Berliner Effektenbank AG

and

New York Broker Germany AG

.

When

Microsoft

(MSFT) - Get Report

co-founder Paul Allen shows interest in a company, people take notice. That's what's happening with

Fatbrain.com

(FATB)

today after the online bookstore for professionals said that Allen's

Vulcan Ventures

had invested $20 million in the company. Fatbrain was up 2 3/4, or 14%, at 23 early on. The money is expected to fuel Fatbrain's e-commerce initiatives, including eMatter, its online digital publishing platform.

Shares of

EMusic.com

(EMUS)

were up 1/8, or 0.8%, at 15, on news that it had entered into an alliance with

Hewlett-Packard

(HWP)

. H-P said it would include a CD-ROM in some of its computers that have HP DC that will include software from

MusicMatch Jukebox

, which allows users to record, organize and play digital music, along with 10 free MP3 tracks from Emusic.com. H-P was off 2 1/4, or 2.5%, at 80 1/2.