Net Stocks Gain Steam in Afternoon
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Internet shares turned in a solid performance Tuesday, building on a rally that started early in the session as investors continued bargain hunting amid a new round of support from sector analysts. The boost helped the Nasdaq achieve its second-largest single day point gain.
internet.com's Internet Stock Index jumped 60.76, or 9.17 percent, to 723.55, the Nasdaq Composite vaulted 229.09 to 3,711.57 and the Dow Jones industrial average closed up 218.72 to 11,124.82.
One of the sector's biggest gainers was Turnstone Systems Inc. (TSTN) which soared 42-3/64 to 107-63/64. The DSL equipment maker reported a first-quarter profit of 14 cents compared to a 40-cent loss a year ago.
Extreme Networks Inc. (EXTR) added 4-7/16 to 59-7/16. Lehman Brothers' Mark Sue initiated coverage of the networking equipment firm with a "buy."
Microsoft Corp. (MSFT) gained 2-3/4 to 69-3/8. The Justice Department Tuesday briefed White House officials on possible remedies in the government's antitrust case. The government must present its recommended remedies to U.S. District Judge Thomas Penfield Jackson by Friday.
Performing especially strong were several e-finance companies. E*Trade Group Inc. (EGRP) ended up 13/16 to 20-7/8. Company CEO Christos Cotsakos said Tuesday revenues are on pace to exceed $1 billion this year.
Diamond Technology Partners Inc. (DTPI) jumped 19-5/8 to 76-3/16. The Internet consultant's fiscal fourth-quarter earnings came in at 19 cents a share, 2 cents better than expected.