MIDDAY MARKETS: Amazon news inspires tech investors

Good news from Amazon.com lifted technology stocks out of their slump at midday Monday. The Nasdaq rose 14.95 points to 1,735.31.

The Dow Jones industrial average gained 84.44 points to 9,875.53, and the Inter@ctive Week @Net Index increased 4 points to 152.79.

Shares of Amazon.com (Nasdaq: AMZN) soared 40 percent, and were up $2.67 to $11.04 at midday, after the company said it would post a smaller-than-expected loss for the first quarter amid strong electronics sales.

AOL Time Warner (NYSE: AOL) rose 29 cents to $39.59, and Yahoo (Nasdaq: YHOO) gained 71 cents to $15.52. "The Internet sector is helping the market this morning, which is somewhat ironic because it has been the main leader on the way down," Peter Coolidge, managing director of equity trading at Brean Murray & Co. told Reuters.

Intel (Nasdaq: INTC) fell 53 cents to $23.10 on news that things won't be getting any better for the semiconductor industry, according to an analyst who is predicting 2001 could be the industry's "worst year ever."

E-business software maker Vignette (Nasdaq: VIGN), up 43 cents to $4.31 said Monday it wouldmeet estimates for the first quarter, courtesy of cost cutting moves made in January.

Foundry Networks (Nasdaq: FDRY) jumped 48 cents to $6.79, despite announcing it would miss revenue estimates in its first quarter, and staying mum on earnings expectations. Analysts said the revision was not as bad as expected.

Cisco Systems (Nasdaq: CSCO) rose 34 cents to $13.97, Oracle (Nasdaq: ORCL) gained 13 cents to $17 and Microsoft (Nasdaq: MSFT) was up 45 cents to $56.64.

ZDII staff and Reuters contributed to this roundup.