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CNNfn tech stocks
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November 6, 1998: 6:06 p.m. ET
Barnes and Noble chops down Amazon, internet sector up sharply
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NEW YORK (CNNfn) - U.S. stocks rose for the seventh time in eight sessions as tech stocks continued to surge. All of the major technology indices closed up sharply, with the internet sector posting an impressive 21.97% gain.
Barnes and Noble (BKS) rose 3-3/8 to close at 34-1/4. Shares of the company jumped on news that it will buy closely held book distributor Ingram Book Group for $600 million in cash. The company said the purchase will allow them to deliver books faster and at a lower cost, the company said.
The news of Barnes and Noble's pending buyout hurt rival Amazon.com (AMZN) which tumbled 3 15/16 to close at 124-9/16.
The majority of Internet stocks, however, fared much better, with EarthLink (ELNK) leading the pack. Shares of the Internet service provider skyrocketed 6-7/16 to close at 48-7/8. Internet auctioneer and investor darling eBay (EBAY) posted a 2-1/8 gain to close at 84. Online broker E*Trade (EGRP) also posted a big gain, up 2-1/8 to close at 23-1/8. The company said yesterday it will launch a line of no-load mutual funds. Internet service provider MindSpring (MSPG) recorded an equally impressive 4-5/16 gain to close at 45-5/8.
Shares of software manufacturer Project Software & Development (PSDI) climbed 8-1/8 to close at 29 after the company said earnings for the fourth quarter rose to 50 cents a share, beating the 41 cent First Call estimate. Shares of another software manufacturer, QAD Inc. (QADI) took a beating -- the stock dropped 2-9/16 to close at 4-9/16 a share after warning that its results for the fiscal third quarter ended Oct. 31 will be lower than expected. The company cited a delay in manufacturers' spending due to global economic problems and Year 2000 problems. The company reports quarterly results on Nov. 24.
Finally, telecommunications manufacturer Teltrend (TLTN) rose 4-9/16 to close at 19-9/16 after the company said it expects first-quarter earnings in excess of analysts' expectations. Teltrend, projected by First Call to earn 35 cents a share in the first quarter, expects earnings of 40 to 42 cents a share for the period ended Oct. 31.
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