New York Market: Internet stocks gain in Wall Street rally - Business - News - The Independent

New York Market: Internet stocks gain in Wall Street rally

INVESTORS says declines in US stock prices may fade into memory after Wall Street rallied last week, with internet stocks among the biggest gainers.

"At the first sign [tech stocks] are bottoming, people just fall all over them," said Timothy Stevenson, a money manager for First Union, which oversees $50bn (pounds 31bn). While the index itself climbed 9 per cent, some of the biggest gainers reported larger advances. F5 Networks jumped 70 per cent, Audible gained 43 per cent and Ariba climbed 46 per cent.

America Online, the No 1 online service, which makes up 25 per cent of the market-value weighted index, gained 14 per cent last week. The Nasdaq Composite Index, which includes stocks trading at high price-earnings multiples, including QWest Communications International and Microsoft, had lost as much as 13 per cent from its 16 July closing high of 2,864.48 on interest rate concerns.

The index closed last week at 2,637.81, up 3.5 per cent. The Dow Jones Industrial Average rose 2.4 per cent to 10,973.65 for the week, and the Standard & Poor's 500 Index gained 2.1 per cent to 1,327.68. It was the first time the three indexes each posted a weekly gain since 16 July, when they last closed at records.

"The bulk of the correction is over," said Howard Kornblue, a money manager for Phoenix-based Pilgrim Capital which oversees $7.4bn. "That's contingent on the economic data still to be released, but we should not be negatively surprised."

While investor concerns about rising interest rates helped send share prices lower in late July and early August, investors are now optimistic that the Federal Open Market Committee, which sets policy, will raise rates just once more this year, when it meets on 24 August.

For US bonds, down 10.6 per cent this year, the worst may be over. At least that's the conclusion of one analyst who has surveyed the performance of bonds during the past decade after yields crossed a key threshold: 4 per cent more than the inflation rate.

According to Charles Reinhard, a market strategist at ABN Amro, bond yields have fallen more than 80 per cent of the time during the 12 months after the real yield ranged between 4 per cent and 5 per cent.

This week, real yields, or the rate above the inflation rate, could top 4.01 per cent when a US government report shows that consumer prices climbed 0.3 per cent in July, or 2.1 per cent for the trailing 12 months.

News
John Travolta is a qualified airline captain and employed the pilot with his company, Alto
people'That was the lowest I’d ever felt'
Life and Style
healthIt isn’t greasy. It doesn’t smell. And moreover, it costs nothing
News
peopleThe report and photo dedicated to the actress’s decolletage has, unsurprisingly, provoked anger
Property
Home body: Badger stays safe indoors
property
PROMOTED VIDEO
News
The programme sees four specialists creating what they believe are three perfect couples, based on scientific matchmaking. The couples will not meet until they walk down the aisle together
tvUK wedding show jilted
Arts and Entertainment
US pop diva Jennifer Lopez sang “Happy Birthday” to Gurbanguly Berdimuhamedow, president of Turkmenistan
musicCorporate gigs become key source of musicians' income
Arts and Entertainment
You've been framed: Henri Matisse's colourful cut-outs at Tate Modern
artWhat makes a smash-hit art show
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
While many films were released, few managed to match the success of James Bond blockbuster 'Skyfall'
filmsDaniel Craig believed to be donning skis as 007 for first time
Sport
Mikel Arteta pictured during Borussia Dortmund vs Arsenal
champions league
Voices
Yes supporters gather outside the Usher Hall, which is hosting a Night for Scotland in Edinburgh
voicesBen Judah: Is there a third option for England and Scotland that keeps everyone happy?
Arts and Entertainment
Pulp-fiction lover: Jarvis Cocker
booksJarvis Cocker on Richard Brautigan
Arts and Entertainment
Robin Thicke and Pharell Williams in the video of the song, which has been accused of justifying rape
music...and he had 'almost no part' in writing it
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Sales Executive

£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...

Payroll & Accounts Assistant

£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Senior BA - Insurance **URGENT**

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week