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CNNfn tech stock report
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November 17, 1998: 4:29 p.m. ET
Rate cut boosts technology shares; HP slumps on '99 revenue warning
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NEW YORK (CNNfn) - The Federal Reserve's cut of key U.S. interest rates Tuesday lifted technology stocks out of the doldrums. Meanwhile, a pair of industry heavyweights finished at opposite ends of the spectrum.
Computer and printer maker Hewlett-Packard Co. (HWP) dropped 6 to close at 60-1/8, according to preliminary data. Although the company reported better-than-expected fourth-quarter earnings after Monday's close, officials said HP expects revenues to slow in 1999. Several analysts immediately cut their ratings of the company.
The day's other big story centered around electronic-commerce giant Amazon.com Inc. (AMZN), which soared 22-1/4, more than 17 percent, to 148-1/2 after the company opened its new video and holiday gift stores on its Web site. Amazon now offers electronics goods, toys and games along with books and music.
Internet stocks in particular shot up out of negative territory in midday trading as stocks surged after the Federal Reserve cut key interest rates by a quarter percent.
America Online Inc. (AOL) rose 5-7/16 to 152-1/16; Yahoo Inc. (YHOO) climbed 3-1/2 to 176-3/4; and Infoseek Corp. (SEEK) jumped 1-15/16 to 35-3/4.
RealNetworks Inc. (RNWK) finished 2-3/4 higher at 41-1/4; MindSpring Enterprises Inc. (MSPG) climbed 1-1/16 to 56-1/16; and N2K Inc. (NTKI) rose 1-5/16 to 10-3/4.
But music retailer turned e-commerce player K-Tel International Inc. (KTEL) shed 5-5/8, or 32 percent, to 12 after disclosing it faces delisting from the Nasdaq National Market.
Telecommunications companies also benefited from a Fed boost. GTE Corp. (GTE) closed 1-9/16 higher at 62-1/2, while Bell Atlantic Corp. (BEL) jumped 1-3/8 to 56.
Among industry bellwethers in other sectors, Microsoft Corp. (MSFT) added 3-1/16 to close at 111-7/8; Dell Computer Corp. (DELL) rose 1-1/8 to 64-5/16; and Cisco Systems Inc. (CSCO) climbed 1-13/16 to 68-3/4. 
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