The Real Leaders Report

Forget the Wintel duo, the real stock market leaders are reporting this week.

Everyone is always looking for the next Microsoft or Cisco , each of which returned about 10,000% in a decade.

Why not look for the next NetEase instead, which did the same in a little over a year?

Chinese Internet stocks like NetEase, Sohu and have been the most spectacular performers in the year-old bull market, fueled by fast-growing Internet use and advertising, a pay-per-service business model that Yahoo would envy, and low-cost labor.

The stocks have been stuck in a trading range for the last couple of months as they digest their extraordinary gains. So far, their earnings have been well-received, with Sohu getting a nice pop on Friday and Sina after the close tonight, but not enough to break out to new highs just yet. If they do break out, that could be a hint that the broader market could follow.

Stocks rebounded on Monday on strong home sales and a merger between Bank of America and Fleet Boston .

The Nasdaq rose 17 to 1882, the S&P 500 added 2 to 1031, and the Dow climbed 25 to 9608. Volume declined to 1.36 billion shares on the NYSE, and 1.52 billion on the Nasdaq. Advancers led 21-10 on the NYSE, and 20-10 on the Nasdaq. Upside volume was 63% on the NYSE, and 72% on the Nasdaq. New highs-new lows were 195-10 on the NYSE, and 193-10 on the Nasdaq.

After the close, Netegrity , Macrovision , and Adeptic beat estimates; Neoware came in light on revenues; and FreeMarkets warned.

During the day, ON Technology surged 14% on news that it will be acquired by Symantec .

Lucent rose 3% after it won a contract from Verizon .

InterActiveCorp edged higher on yet another acquisition.

AskJeeves fell 8% after a Barron’s article questioned the company’s valuation.

ClickSoftware surged 12% on its third straight quarterly profit.

XM Satellite Radio climbed 3.5% as it signed up its one millionth subscriber.

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