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CNNfn market movers
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April 14, 1999: 2:42 p.m. ET
Solid earnings reports don't matter much, but on-line ventures, upgrades do
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NEW YORK (CNNfn) - Investors abandoned the comfort of solid earnings reports to explore several on-line ventures Wednesday, but found themselves quickly spooked by financial downgrades and over-inflated Internet banking stocks.
Investors spent the afternoon looking for potential on-line deals big and small, including chasing down a persistent rumor that Arlington, Va.-based brokerage Friedman, Billings Ramsey (FBG) would soon launch an on-line trading system.
As the rumors heated up, so did the company's stock, climbing 2-3/16 to 10-3/4.
One firm with a more concrete deal was Priceline.com (PCLN), which announced it had entered a marketing agreement with Banc One's First Visa unit, sending the stock up 8 to 89-1/2.
Internet banking ventures remained a hot commodity, if but for a day. Two more financial institutions - First Sierra Financial Services Inc. (FSFH) and Sovereign Bancorp (SVRN) announced plans for such initiatives Wednesday, but only one reaped the benefits.
First Sierra climbed 3 to 21-3/4, but Sovereign, after spiking early, was down an 1/8 to 17-3/8 in early afternoon trading.
A similar fate struck Net.B@nk and Florida Banks Inc., two issues investors uncovered Tuesday after those banks announced Internet banking initiatives of their own. Wednesday was a different story, however, as Net.B@nk (NTBK) plummeted 46-1/32 to 189 while Florida Banks (FLBK), which also received a downgrade from Wachovia Securities today, fell 10-9/16 to 20-11/16.
On their way down, Net.B@nk and Florida Banks took two other hot on-line brokers from Tuesday with them. National Discount Brokers (NDB) was down 11-1/2 to 75 in early afternoon trading while Telebanc Financial (TBFC) dropped 31-1/2 to 109.
Outside the financial arena, several other companies quickly picked up steam by impressing analysts.
Chief among them was Oxford Health Plan (OXHP), which was upgraded to a "top pick" by Donaldson, Lufkin and Jenrette amid optimism its turnaround is on track.
Other companies receiving upgrades Wednesday included Seagate Technology (SEG), which earned an "attractive" rating from Bear Stearns after posting higher than expected earnings.
Investors struggled with mixed messages concerning Sprint PCS (PCS), which was down 5-7/8 to 49-5/8. Morgan Stanley downgraded the wireless network to a "neutral" from a "strong buy," but Soundview Technology Group initiated coverage of the company with a "buy" rating and a 12-month target price in the high $60 range.
Biomatrix (BXM) likewise struggled with a cut in its rating from a "strong buy" to an accumulate from Prudential Securities, falling 7-1/2 to 82-1/2.
Earnings? What earnings?
But in perhaps the day's most surprising development, a series of positive earnings reports did little to influence a number of companies' stocks.
Among those that posted only modest gains after beating Wall Street's expectations were Hertz Corp. (HRZ), up 2-5/16 to 61, Fleet Financial Group (FLT), up 7/8 to 43-5/16 and Hughes Electronics (GMH), up 13/16 to 55-13-16.
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