Yahoo! incited a rally at midday Wednesday, as the Internet company's better-than-expected results renewed faith in the Internet sector. The Nasdaq rose 97.70 to 40,54.12 and the Dow Jones industrial average climbed 35.71 to 10,762.90.
The Inter@ctive Week @Net Index rose 23 to 498.47.
Yahoo! (Nasdaq: YHOO) led techs up after posting second-quarter earnings that beat expectations by 2 cents a share, allaying fears that the dot-com shakeout won't hurt the Web giant's advertising prospects. AOL (NYSE: AOL) was up 3/8 to 56 3/8 and Amazon (Nasdaq: AMZN) rose 2 9/16 to 35 11/16 .
On the IPO front, Internet incubator Divine InterVentures Inc., (Nasdaq: DVIN) finally priced at $9 a share, the bottom of its expected range of $9 to $10 per share, which was lowered from $13-$15 per share.
Chinese Internet company Sohu.com Inc (Nasdaq: SOHU) edged up 1/16 to 13 1/16 after it priced 4.6 million shares at $13 each for trading Wednesday.
PMC-Sierra, Inc. (Nasdaq: PMCS), up 10 3/4 to 207 3/16, said Wednesday it will buy Quantum Effect Devices Inc. (Nasdaq: QEDI), up 17 1/2 to 78, for about $2.3 billion, and intends to make its open-architecture MIPS technology dominant in the broadband semiconductor space. Motorola (NYSE: MOT), up 1 3/8 to 34 15/16 , will report quarterly results after the bell. Intel (Nasdaq: INTC) rose 1 1/4 to 140 1/16.
Shares of Goto.com (Nasdaq: GOTO), up 3 7/16 to 13 3/4, jumped 20 percent after the company announced an extension of its relationship with America Online's Netscape division.
Drugstore.com.com (Nasdaq: DSCM), up 1/16 to 7, could be hurt by Wednesday's announcement that Rite-Aid Corp. (NYSE: RAD), down 3/4 to 5 7/8, is selling its PCS Health System division to Advance Paradigm Inc. (Nasdaq: ADVP), down 3/16 to 22 3/8, according to regulatory filings.
International fiber-optic communications network company Global Crossing Ltd (Nasdaq: GBLX), up 2 5/16 to 31 7/16, said on Wednesday it would sell its U.S. local telephone business to Citizens Communications for $3.65 billion in cash.
Intermedia Communications (Nasdaq: ICIX), up 1/8 to 23 1/2, recovered after tumbling as much as 12 percent after it announcing second-quarter and full year revenue will miss expectations. It is also filing a lawsuit against BellSouth (NYSE: BLS), even at 41 1/4, which it blames for its troubles.
Among other leading tech issues: Cisco (Nasdaq: CSCO) gained 1 1/16 to 63 3/16, Sun Microsystems (Nasdaq: SUNW) rose 2 11/16 to 92 7/8, Microsoft (Nasdaq: MSFT) was down 1/64 to 79 7/64 and Oracle (Nasdaq: ORCL) was up 2 1/8 to 74 7/16.