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Techs slip into reverse
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May 20, 1999: 5:20 p.m. ET
Nasdaq heads lower, but eToys' IPO puts smile on faces of its shareholders
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NEW YORK (CNNfn) - The technology sector went into reverse on Thursday, but one new issue targeting sales to youngsters through the Internet chalked up impressive gains.
The Nasdaq Composite fell 35.17 points to close at 2,542.23, a loss of 1.4 percent.
Thursday's session meant playtime for investors in eToys (ETYS), which soared to 56-9/16, up 282 percent, after the online vendor of playthings launched its initial public offering at $20.
For a second day, the online medical information service provider Healtheon (HLTH) received a dose of healthy stock market news, roaring up 20-3/8 to 100-5/8 and hitting as high as 126-3/16 after wrapping up plans for a $7.9 billion merger accord with WebMD.
CNN has a minority stake in WebMD.
Hopping on that bandwagon was Superior Consultant Holdings (SUPC), gaining 6-7/8 to 39, after the provider of e-commerce services to healthcare organizations said it had inked a service relationship with WebMD and took an equity stake in the company.
Casting a bit of a pall on an already-hurt segment, chip-equipment maker Etec Systems (ETEC) shed 5-5/8 to 30-3/8, after reporting third-quarter profit per share that fell short of Wall Street analysts' targets by a penny.
CS First Boston cut its rating on the stock to "hold" from "buy."
Investment Technology Group (ITG) added 6-9/16 to 39-1/8. The provider of electronic stock-trading service lined up with Bloomberg Tradebook's electronic trading system to form a fast trading system for institutional investors.
Tapping into the stock market well for cash was Emulex (EMLX), up 12-1/4 to 75-1/2. The networking company Wednesday priced a secondary offering of 2 million shares at $61.
In the stock-market dog house Thursday, Covad Communications (COVD) lost 6-7/16 to 56-1/2, a day after the high-speed networking company announced a filing for a secondary offering of up to 7.5 million shares.
Cohabiting the market cellar was Pacific Internet (PCNTF), down 5-5/8 to 51-1/2. The Asian Internet service provider said it will purchase Australian ISP Mira Networking for an undisclosed sum.
On the upside in cyberspace was CNET (CNET), rallying 6-1/16 to 125-3/4 after the Internet news provider said it will join the Nasdaq 100 index next Monday.
The move onto the Nasdaq is expected to boost CNET's market visibility and is a sign the company is a leader in its market segment, said Chief Financial Officer Doug Woodrum in a statement Thursday.
High-tech equipment distributor Tech Data (TECD) rose 4-15/16 to 39-3/8, after the information technology unit of General Electric (GE) said it hired Tech Data as a procurement, assembly and logistics services provider.
The agreement gives Tech Data $2 billion in annual revenues for the next 3 years.
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