Nasdaq rises on optimism about Internet deals
NEW YORK, May 10 (Reuters) - The Nasdaq closed higher
Friday led by Internet issues, which surged on news of several
deals that created momentum in the sector as a whole.
The Nasdaq composite index ended unofficially at 2526.39, up
22.77 points, or roughly 0.91 percent higher, on volume of 835
million shares. Advancing issues beat declines by a solid
margin, 2209 to 1860. There were 98 stocks that reached new
52-week highs and 43 hit new lows.
"Most of the whole group is bouncing back after some serious
deterioration in past weeks," said Dennis Murray, a head trader
at Dain Rauscher.
Traders cited reports that USA Networks Inc. <USAI.O> is
expected to pull out of its deal to buy Lycos Inc. <LCOS.O>.
Lycos shares surged 15-3/4 to 105-1/4 and Internet investor
CMGI Inc. <CMGI.O>, which held a roughly 20 percent stake in
Lycos, rose 16-11/16 to 237-15/16.
Then America Online Inc. <AOL.N> said it signed multi-year
pacts with five big U.S. banks to carry their online banking
activities on AOL's personal finance channel. AOL shares closed
up 10-1/8 at 128-5/16.
Shares of At Home Corp. <ATHM.O>, considered a threat to
AOL's position as the number one Internet services company,
fell 2-11/16 to 155-1/16, one of the few declining Internet
companies.
"It's very puzzling that At Home is down, despite good news
for AOL," said one trader. "Makes you wonder if there's not a
more positive spin on the AOL side that we don't know about
yet."
Priceline.com <PCLN.O> also fell 2-21/32 to 128.
But most Internet issues showed eye-popping gains.
CNET Inc. <CNET.O> and Xoom.com Inc. <XMCM.O> gained
22-7/16 to 136-3/16 and 6-3/4 to 81-7/8, respectively. General
Electric Co.'s <GE.N> NBC television unit said it agreed to
merge certain Internet assets, including its Snap.com joint
venture with CNET with Xoom.com, to be renamed NBC Interactive.
"Lycos started off strong, with rumors the USA Networks
deal wasn't going to take place. Then the online banking
announcement with AOL gave a positive feeling about the
Internet stocks," said Michael James, an institutional desk
trader with Wedbush Morgan Securities.
"They are clearly a momentum group. Once they start off in
one direction, they seem to accelerate in the same direction,
James added.
Yahoo Inc. was up 8-1/4 to 155-11/16, Inktomi Corp.
<INKT.O> was up 15-17/32 119-27/32 and Amazon.com Inc. <AMZN.O>
was up 10-1/2 to 146-7/8.
859-1700))
REUTERS
Rtr 17:11 05-10-99 |
