Tech Stocks Fall With Broad Market as Bonds Tank

Nasdaq ends near session lows. Mapquest.com gains 49% on its first day of trading.
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SAN FRANCISCO -- In what resembled a rerun of Friday's action, tech stocks fell along with the rest of the market amid ongoing weakness in the bond market. But unlike Friday, there was no late-day recovery and the

Nasdaq

closed near its session lows.

Internet stocks, which rallied early in the session, saw gains cut as Treasuries stumbled. Both

Amazon.com

(AMZN) - Get Report

and

RealNetworks

(RNWK) - Get Report

, which helped dictate Monday's weak tone, recovered early today before fading in late trading, typifying action in Net stocks.

Amazon.com traded to a high of 160 1/2 early in the session, but closed down 7 15/16, or 5%, at 143. And RealNetworks eked out a gain of 1 1/2, or 1%, at 201 9/16, though that was far from its session high of 221 1/2.

With interest rates rising and uncertainty about whether Internet stocks are due for a correction, traders appear to be treading cautiously and taking profits on any strength. Nevertheless, there is still a desire to buy Net stocks on weakness, which is why longs emerged after Monday's setback.

Among the leading decliners were two Internet banking stocks.

NetBank

(NTBK)

closed down 24 5/16, or 12%, at 173 1/16 and

TeleBanc

(TBFC)

was off 18 5/8, or 17%, at 90. Today's steep declines follow run-ups over the past month as online banking stocks caught the market's fancy.

Information Advantage

(IACO)

was among the leading percentage decliners after the software company said it expected to report a loss in its first quarter. It closed down 29/32, or 22.5%, at 3 1/8. Information Advantage was expected to report a gain of 4 cents a share, according to

First Call

.

Mapquest.com

(MQST:Nasdaq) made its debut today along with

Goldman Sachs

(GS:NYSE), which was an unenviable position, though Mapquest.com still posted a sizable gain. Mapquest closed up 7 3/8, or 49%, at 22 3/8. Goldman closed up 17 3/8, or 32.8%, at 70 3/8.

Richard Peterson, market strategist with

Securities Data

, said the Goldman Sachs offering certainly overshadowed Mapquest.com today. Peterson said the average Internet IPO has gained approximately 141% in its first day of trading this year, though the average gain has slipped to 124% over the past 30 days as more supply has come to the market.