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CNNfn market movers
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January 11, 1999: 2:29 p.m. ET
Internets rule the day, with euphoria spreading to even distantly related firms
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NEW YORK (CNNfn) - Technology issues stayed in the stock market's front seat Monday, with scattered merger activity providing limited interest in the broader market.
On the Internet, digital media provider Broadcast.com (BCST) exploded 66-1/2 to 264 after setting a 2-for-1 split. The company has been publicly traded for only six months, having debuted in July.
Broadcast.com's meteoric rise rubbed off on related companies, no matter how peripherally connected.
RealNetworks (RNWK), which powers media transmission for Broadcast.com and other streaming Web sites, was up 9 at 59. Friedman Billings Ramsey & Co. analyst Rob Martin set a 12-month price target of $75 on the company, raising his recommendation to "buy" from "accumulate."
Competing Internet radio company Navarre (NAVR) - which operates NetRadio as a sideline to its more mainstream music distribution business - benefited from Broadcast.com's ascent, climbing 4-5/16 to 18 in heavy volume.
Elsewhere online, sector benchmark Yahoo! (YHOO) continued its own relentless upward spiral, gaining 42-3/8 to 386 on news of a marketing team-up with IBM (IBM).
Online brokerage E*Trade (EGRP) leapt 10-7/8 to 78-1/2 after reporting a smaller operating loss than analysts had forecast.
Shares of Internet retailer Shopping.com (IBUY) also made headway, up 5-5/16 at 18-1/2 after Compaq Computer (CPQ) said it is shopping for the company at a price of $19 per share.
Internet envy spreads
Upscale retailer Sharper Image contributed indirectly to the Internet fervor after the company said it will add an online auction to its Internet site, similar to those currently run by Wall Street darlings eBay (EBAY) and uBid (UBID).
Sharper Image (SHRP) shares climbed 7-5/8 to 20 in heavy volume.
However, the Web-hungry investor can be fickle, as music chain operator Musicland (MLG) showed.
Musicland briefly topped the list of Big Board gainers after it clarified its "personality-oriented" Internet retail strategy. Wall Street first applauded the move, pushing shares up as high as 15-1/4, but then the market pulled back, leaving the company flat at 12-7/8, up a scant 1/4.
ResortQuest International (RZT) was a more fortunate beneficiary of Internet envy, rising 4 to 19-1/8 when the vacation real estate company unveiled an online reservation system.
Even the faintest whiff of electronic commerce could drive a stock sharply higher, as fragrance retailer Perfumania (PRFM) demonstrated.
Perfumania shares climbed 2-3/8 to 7-1/2, a new trading high, as investors flocked to the company's announcement that it will launch a Web site and international sales unit.
Networking company Echelon Corp. (ELON) surged after being praised by long-time ally John Chambers, president and CEO of investor favorite Cisco Systems (CSCO).
"Companies such as Echelon are poised to help drive this change with Cisco and extend the power of the Internet from business to the home," Chambers said Friday at the Las Vegas Comdex computer trade show.
Echelon shares nearly doubled in value before profit-taking set up, up 4-3/4 to 13-1/2 by mid-afternoon.
Offline but still deep in the technological realm, CD-ROM manufacturer Zomax Optical Media (ZOMX) rocketed 9-1/4 to 27-3/4 as the market digested news that the company had successfully completed its $37 million merger with rival CD-ROM and DVD publisher Kao Infosystems.
Chipmaker Advanced Micro Devices (AMD) got a hand from forward-looking traders, climbing 2-15/16 to 30-15/16 ahead of its earnings report, expected late Wednesday.
The analog market still exists
The major non-technology company leading the market Monday was hygiene giant Gillette (G), which gained 5-5/16 to 51-3/16. The company reassured investors that fourth-quarter earnings will be in line with estimates.
Shares of medical manufacturer Guidant (GDT) gained 5-5/16 to 112-5/16 after the company received regulatory approval to market a new heart catheter - sold in Europe since October - in the United States.
However, traders punished medical research firm Theragenics (TGX) for reporting disappointing fourth-quarter sales, knocking shares down 4-15/16 to 10-3/8.
Propane supplier Blue Rhino (RINO) also suffered the wrath of Wall Street, tumbling 5 to 19-1/4 after the Wall Street Journal spooked investors with a report that the company had reduced its book value.
Among the day's slate of corporate newlyweds, Pool Energy Services (PESC) sparked 1-3/8 to 15 after announcing it will combine with oil driller Nabors Industries (NBR).
Uniform rental company Unitog (UTOG) also cleaned up, gaining 5-1/8 to 34-7/8 on the strength of its own merger with Cintas (CTAS).
On a global note, American depositary shares (ADRs) of Brazilian companies fell sharply in line with a politically-motivated 7-percent fall in the broader Brazilian market.
Telephone heavyweight Telebras (TBH) led the retreat, falling 4-15/16 in New York to 68-1/16. 
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