Dow Jones Creates Internet Indexes;
New Option to Be Launched Feb. 26
By a WALL STREET JOURNAL Staff Reporter
February 18, 1999
NEW YORK -- Dow Jones & Co. has created new stock indexes that track Internet-company shares, and an option based on one of the indexes will be launched Feb. 26.
The main index is the Dow Jones Internet Index. It includes 40 stocks that represent 80% of the market capitalization of Internet stocks, though the number of stocks could fluctuate. (Stocks issued through initial public offerings must be at least three months old to be eligible.)
This main index is made up of two subindexes: the Dow Jones Internet Commerce Index, which includes 15 of the 40 stocks; and the Dow Jones Internet Services Index, with the other 25. The services index consists of stocks including America Online Inc. that derive no less than 50% of their revenue by providing access to the Internet, or providing enabling services to Internet users; the commerce index consists of stocks including Amazon.com Inc. that derive at least 50% of their revenue from providing goods or services over an open network such as a Web site.
The Chicago Board Options Exchange will launch an index option based on the Dow Jones Internet Commerce Index on Feb. 26.
Dow Jones, which publishes The Wall Street Journal and the Interactive Journal, overall maintains more than 3,000 indexes including the Dow Jones Industrial Average.
"Internet stocks have rapidly become among the most volatile, popular sectors of the equities market," said Michael A. Petronella, managing director of Dow Jones Indexes, a unit of Dow Jones. "We've constructed the DJII to present a clear and consistent view of Internet stock performance."
Other Internet-related indexes maintained by other companies include the CBOE Internet Index, TheStreet.com Internet Sector Index and the GSTI Internet Index (a subindex of the Goldman Sachs Technology Index).
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Dow Jones Composite Internet Index
Commerce Index (15 Companies)
Amazon.com
Beyond.com (Software.net Corp.)
Broadcast.com
Cdnow
Cyberian Outpost
E*Trade Group
eBay
Egghead.com
Excite
GeoCities
Infoseek
Lycos
OnSale
Ticketmaster Online-City-B
Yahoo!
Internet Service Index (25 Companies)
America Online
At Home Corporation
AXTENT Technologies
BroadVision
Check Point Software Technologies
CheckFree Holdings
CMGI
CNET
Cybercash
DoubleClick
EarthLink Network
Exodus Communications
IDT
Inktomi
Mindspring Enterprises
Netscape Communications
Network Solutions
Open Market
PSINet
RealNetworks
Spyglass
Sterling Commerce
USWeb/CKS
Verio
VeriSign
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