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Internet proves inconstant
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July 9, 1998: 6:17 p.m. ET
'Net stocks, chipmakers punished as traders seek refuge in computer firms
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NEW YORK (CNNfn) - Technology stocks shook off the Internet hype on Thursday, instead climbing to a new record on the comparatively stable platform of the computer sector while fresh earnings gloom kicked already-sinking semiconductors lower.
At the end of a day filled with mixed portents and choppy trading, the Nasdaq Composite index struggled ahead 4.62 to 1,940.01.
The Internet sector continued its harrowing course of volatility, with stocks that had soared in overnight trading just a few hours earlier being shredded in the market riptide.
Yahoo! (YHOO) ended in the red, shedding 2-3/16 to 184 despite lingering euphoria over its triumphant earnings report released after the bell Wednesday.
Other online players received sterner punishment, with Lycos (LCOS) falling 6-9/16 to 70-15/16, Excite (XCIT) losing 9-1/8 to 82-1/4 and Infoseek (SEEK) tumbling 2-1/16 to 32-7/16.
The Internet service providers extended their week-long plunge, with only America Online (AOL) recovering its balance to close up 3-1/8 at 113-7/8. Earthlink (ELNK) remained depressed, down 3-3/8 at 64, while Mindspring (MSPG) turned its back on a morning bounce to end the day down 1-5/8 at 93-5/8.
Elsewhere in cyberspace, Internet media company CNET (CNWK) fell 4-7/8 to 56-1/2 while software distributor Navarre (NAVR) leapt 3 to 7-3/16 -- having been as high as 11-1/8 in the day -- after announcing that it would supply software to Barnes & Noble's (BKS) online bookstore.
Computing shows results
Direct computer marketer Dell (DELL) led a generally stronger PC sector, climbing 3-1/2 to 99-7/8 in heavy trading.
Dell competitor Gateway 2000 (GTW) also gained 2-1/8 to 61-7/8 on rumors that it might be a possible target of a takeover by IBM (IBM), itself up 2-1/16 at 117-1/16 as part of the general surge in the computing sector.
Apple stock (AAPL) ended down 7/8 at 31-11/16 after being downgraded from "neutral" to "speculative buy" by research firm Robert M. Cohen as hopes raised by Steve Jobs' appearance at MacWorld proved fleeting.
Rounding out the major computer makers, Compaq (CPQ) rose 1-3/4 to 31-9/16 while Hewlett-Packard (HWP) eased 1-3/8 to 59-9/16 and up-and-coming Micron Technology (MIJ) leapt 1-1/4 to 28-1/2.
Software also firms
The dominant players in the software field bounced higher on the computing rally, with Microsoft (MSFT) up 1-3/8 at 111-1/4 and Oracle (ORCL) up 1 at 24-9/16, although Netscape (NSCP) shied away from similar gains to slide 3/8 to 36-11/16 in late trading.
Beleaguered database firm Sybase (SYBS) rocketed up 1-1/16 to 8 while game maker Electronic Arts (ERTS) gained 1-7/16 to 54-3/16.
Goodbye higher chips
In the gloom of the semiconductor sector, earnings disappointments continued to rain bad news, but only Intel (INTC) -- with stock closing up 1-15/16 at 80-1/4 -- was singing.
Most other chipmakers declined as Advanced Micro Systems (AMD) repeated Motorola's litany of lower profits and a worldwide industry slump.
AMD (AMD) plummeted 2-3/16 to 15-15/16 while Maxim (MXIM) gave up gains made earlier in the week, shedding 1-15/16 to 32-1/8, and Applied Materials (AMAT) lost 1 to 29.
Dallas Semiconductor (DS) lost 1-1/16 to 30-1/4 as investors fled from the company ahead of its own announcement of earnings data, expected after the bell.
On the upside, Motorola (MOT) regained some ground lost earlier in the week as cautious investors pushed the stock up 1/2 to 52-11/16. 
-- by staff writer Robert Scott Martin
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