Technology stocks bounced back a bit at midday Tuesday with Internet stocks rebounding. The Nasdaq was up 29.89 to 2,428.20 following Monday's 50-point plunge. The Dow Jones Industrial average rose 99.41 to 10,662.74. The @Net Index rose 7.62 to 264.32.
Trading was still far from exuberant as investors anticipate Wednesday's release of the Consumer Price Index, which may reaffirm rumors the Federal Reserve is about to raise rates at the end of the month.
Yahoo! Inc. (Nasdaq: YHOO) made strong gains, up 8 15/16 to 128 3/16. America Online Inc. (NYSE: AOL) rose 4 1/8 to 94 1/4. CMGI was up 3 9/16 to 79, as it announced Tuesday it plans to offer its stockholders shares in the companies it takes public.
EBay Inc. (Nasdaq: EBAY) rebounded 2 3/4 to after it ruined the day for Net stocks Monday on concerns about the company's numerous outages. E*Trade Group was up 1 9/16 to 33 9/16 after announcing an agreement with Sprint Corp. (NYSE:PCS) to co-market services.
Harry Aloof, author of the Wall Street Trader's report, said investors shouldn't get too enthusiastic about the Internet stock rebound. "The fact that they are up three or four points now means nothing," said Aloof, a technical analyst. "They need it on the close and they need seven or eight points."
Qwest Communications International Inc. (Nasdaq: QWST) shares rose 1 5/8 to 35 3/4, following yesterday's plummet after a hostile bid for US West (NYSE: USW) and Frontier Corp.(NYSE: FRO). Frontier added 5/8 to 58 and US West slipped 1 1/2 to 56 1/2.
Oracle Corp. (Nasdaq: ORCL), which is set to report fourth quarter results after the bell, gained 5/8 to 27 1/16.
Among other notable tech issues, Microsoft Corp. (Nasdaq: MSFT) added 1 1/8 to 78 11/16, Dell Computer Corp. (Nasdaq: DELL) jumped 1 to 34 15/16, Intel Corp. (Nasdaq: INTC) was up 1 7/16 to 55 13/16, IBM Corp. (NYSE: IBM) jumped 1 7/8 to 117 3/8 and Compaq Computer Corp. (NYSE: CPQ) lost 3/8 to 21 5/8.