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.
Redback Networks Inc. (RBAK) jumped 13-3/8 to 67-3/8 after Goldman Sachs’ Ajay Diwan put the networking equipment maker on its recommended list.
Etoys Inc. (ETYS) climbed 1-1/16 to 6-17/32 after the company unveiled a summer marketing campaign to boost off-season sales.
Yahoo! Inc. (YHOO) added 10-5/8 to 124-1/2. The portal is reportedly considering a $6.3 billion offer for British magazine publisher Emap Plc.
Vignette Corp. (VIGN) jumped 4-7/8 to 45-13/16. CS First Boston’s Brent Thill upgraded the Internet software firm to “strong buy” from “buy.”
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.
LendingTree Inc.(TREE) closed up 1-3/16 to 5-15/16 and S1 Corp. (SONE) jumped 6-7/16 to 45-1/2. Warburg Dillon Read’s Diane Glossman initiated coverage of both companies with a “strong buy.”
E-Loan Inc. (EELN) soared 5-9/32 to 9-11/32. The online lender received $40 million in investments from Charles Schwab Corp. (SCH) and Abbey National Plc.
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.
Netzero Inc. (NZRO) rose for a second day, up 4-5/8 to 16-1/16. On Monday, wireless communic
ations firm Qualcomm Inc. (QCOM) invested $144 million in the free ISP.
GoTo.com Inc. (GOTO) added 1-1/8 to 35-5/8. The search engine reported a first-quarter loss of 20 cents, excluding one-time items. That was 13 cents better than expected.
CacheFlow Inc. (CFLO) rose 8-1/2 to 57-1/4 after signing a reseller agreement with Computer Sciences Corp.
Akamai Technologies (AKAM) lost 2-3/16 to 73-1/16. The company, which optimizes Internet content, reported a first-quarter loss of 44 cents, 4 cents higher than expected.
Exodus Communications Inc. (EXDS) fell for a second day, losing another 4-1/8 to 78-3/8 after falling more than 25 points on Monday. The Web hosting firm reported a first-quarter loss of 32 cents compared to a loss of 14 cents a year ago.
Homestore.com Inc. (HOMS), lost 2-1/4 to 19-1/2. The company Tuesday received a request from the Justice Department’s antitrust division to provide information about its Internet realty business. The firm said the government made no allegations of any legal violations.
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