Surprise rate cut unleashes Net
______________________________________________________
AOL Time Warner tops profit target as revenue rises
By August Cole, CBS.MarketWatch.com
11:02 AM ET Apr 18, 2001
<<NEW YORK (CBS.MW) - An unexpected move by the Federal Reserve sliced 50 basis points from the federal funds rate, driving U.S. stocks wildly higher in morning trading.
The Goldman Sachs Internet Index ($GIN: news, msgs, alerts) leapt 12 percent to 137.95 while the Nasdaq gained nearly 8 percent to 2,077.
Already, investors had bid up Internet stocks Wednesday morning as PC and chip companies hinted that the economic slump hindering profit growth just might be tapering off. The move by the central bankers cut the lending rate between banks to 4.5 percent, effectively making it less expensive for companies to borrow money. As such, these moves typically stimulate spending six to nine months down the road. See full story.
Standouts in the sector included AOL Time Warner (AOL: news, msgs, alerts) . The world's biggest Internet and media conglomerate topped Wall Street's profit target, saying revenue rose 9 percent to $9.1 billion. Shares of AOL-Time Warner were up $6.10, or 13 percent, to $50. See full story.
Yahoo (YHOO: news, msgs, alerts) , a day after naming Hollywood executive Terry Semel to succeed CEO Tim Koogle, saw its stock jump $2.69 to $20.
Software firm Ariba (ARBA: news, msgs, alerts) rose 55 cents to $6.31 while Commerce One (CMRC: news, msgs, alerts) rose $1.74 to $10.82.
Shares of CNet (CNET: news, msgs, alerts) rose $1.22 to $11.27.>> |
