Midday Movers Jun 10, 1999
Interest rate concerns are once again weighing on the market.
Stocks are lower across the board with financials, Internet and drugs particularly weak.
The yield on the 30-year treasury, which has been creeping up all week in front of tomorrow's much anticipated PPI report, hit 6.05% this morning.
Another possible reason: A report that prices for imported goods rose 0.7% in May, higher than the 0.2% estimate, fed inflation fears. This was the third consecutive month of rising prices.
One good sign: Japan's report that its GDP grew 1.9% in the March quarter. Analysts were expecting a 0.1% increase. The pleasant surprise seems to indicate that Japan's economy is finally turning around and may add to inflationary pressures.
For those of you looking for clues into the state of Fed Chairman's brain, he will be delivering the commencement address at Harvard University this afternoon. He may just reveal the secret to the universe.
Internet stocks are mostly lower with America Online (NYSE:AOL - news) down $4 to $107 per share and eBay (NASDAQ:EBAY - news) off $5.50 to $177.50.
MessageMedia Inc. (NASDAQ:MESG) is up $1.88, or 18.7%, to $13.25 after announcing plans to make two acquisitions. Yesterday after the close, MessageMedia, a provider of e-mail direct marketing, said it plans to buy closely-held Revnet Systems for $46 million in stock to gain e-mail database-software technology. This morning the company said it has signed a letter of intent to acquire Decisive Technology, the leading provider of continuous customer feedback solutions. The deal is valued at about $50 million in stock. The companies are currently negotiating a definitive agreement, which is expected to close within 30 days.
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