Tech, Internet Funds Jumped in Week

This week the average technology, Internet & telecommunications fund we track rose 4.14%. The Dow Jones U.S. Technology, Telecommunications, & Semiconductor Indexes climbed 5.60%, 4.82%, and 4.42%, respectively, for the five trading days ending Thursday, April 24.

As confidence in the American economy hits a 26-year low on the Reuters/University of Michigan Sentiment Index, gasoline bubbles to about $4 a gallon and real estate requiring long commutes remains depressed. This has consumers cutting back on premium items such as Starbucks(SBUX Quote) coffee and restricting purchases to must-have products like Apple's(AAPL Quote) MacBook Air.

Apple reported 36% higher second-quarter net income topping $1 billion and a 43% bump in sales to $7.51 billion. Its shares gained 9.35% for the period under review.

Meanwhile, by rolling out AT&T(T Quote) high-speed Internet Wi-Fi service at 7,000 locations by year's end, Starbucks may be trying to convince investors that should be valued as a tech stock where customers rent a half hour of Internet usage for each Venti Caramel Macchiato purchased.

The top-performing technology, Internet or telecommunications fund this week is the Ultra Technology ProShares(ROM Quote), up 9.73%. The fund is 200% leveraged to the stocks of the Dow Jones U.S. Technology Index, while the fourth-place ProFunds Technology UltraSector ProFund(TEPIX Quote) gained 8.33% on 150% leverage.

Top index holdings include Microsoft(MSFT Quote), Cisco Systems(CSCO Quote), Google(GOOG Quote), and IBM(IBM Quote). Microsoft reported $4.93 billion in quarterly earnings, which missed expectations and lagged the same quarter last year, yet the stock added 8.83% for the week. Another index member, F5 Networks(FFIV Quote), advanced 19.58% this week, reporting 25% year-over-year revenue growth in its fiscal second quarter.

The second-place fund, Ultra Telecommunications ProShares(LTL Quote), is a brand-new, barely traded fund 200% leveraged to the Dow Jones U.S. Telecom Index. Sprint Nextel(S Quote) jumped 22.85% while Comcast(CMCSA Quote) and Time Warner Cable(TWX Quote) pulled out of the "Pivot" joint venture, with customers reverting to Sprint mobile-phone plans. Level 3 Communications(LVLT Quote) popped 22.77% in a short-squeeze by shrinking its quarterly loss.

PowerShares Dynamic Networking Portfolio(PXQ Quote) held third place with a return of 8.86%. The holdings making the biggest moves include Broadcom(BRCM Quote), up 28.13%; PMC - Sierra(PMCS Quote), up 26.22%; Altheros Communications(ATHR Quote), up 12.28%; and Juniper Networks(JNPR Quote), up 10.15%.

Best Performing Technology Funds for the Week Ending Thursday April 24
Fund	Ticker	Rating	Fund Type	1 Week Total Return
Ultra Technology ProShares	ROM	E-	ETF	9.73%
Ultra Telecommunications ProShares	LTL	U	ETF	8.94%
Powershares Dynamic Networking Portfolio	PXQ	E-	ETF	8.86%
ProFunds Technology UltraSector Profund	TEPIX	E	Open-End	8.33%
Ultra Semiconductor ProShares	USD	E-	ETF	8.14%
Kinetics Internet Emerging Growth Fund	WWWEX	D-	Open-End	7.58%
RS Technology Fund	RSIFX	D-	Open-End	7.41%
Fidelity Select Networking and Infrastructure Portfolio	FNINX	E-	Open-End	7.14%
ProFunds Semiconductor UltraSector ProFund	SMPIX	E-	Open-End	6.50%
Fidelity Select Software & Computer Services Portfolio	FSCSX	C+	Open-End	6.43%
Source: Bloomberg & TheStreet.com Ratings

The two worst performing funds are the inverse funds of the two best performers: UltraShort Technology ProShares(REW Quote), down 9.12%; and UltraShort Telecommunications ProShares(TLL Quote), down 8.80%.

On top of losing twice the gains in Broadcom and PMC - Sierra, the UltraShort Semiconductors ProShares(SSG Quote) suffered the 23.30% ascent in LSI(LSI Quote), 22.53% in Marvell Technology(MRVL Quote), and the 19.00% in RF Micro Devices Inc(RFMD Quote).

Not only did Broadcom report a great first quarter, with 22% higher net income on 15% higher sales due in part to strong sales of Nintendo(NTDOY Quote) Wii videogame consoles, but it also issued bullish second quarter revenue guidance. PMC - Sierra also beat analyst estimates on 21% higher sales, as did LSI, with a 42% bigger quarterly top-line figure.

Worst Performing Technology Funds for the Week Ending Thursday April 24
Fund	Ticker	Rating	Fund Type	1 Week Total Return
UltraShort Technology ProShares	REW	C	ETF	-9.12%
UltraShort Telecommunications ProShares	TLL	U	ETF	-8.80%
UltraShort Semiconductors ProShares	SSG	A	ETF	-8.56%
ProFunds Mobile Telecom UltraSector ProFund	WCPIX	E-	Open-End	-1.94%
First Trust Dow Jones Internet Index Fund	FDN	E+	ETF	-1.58%
B2B Internet HOLDRs Trust	BHH	E-	ETF	-0.04%
John Hancock Technology Leaders Fund	LUXRX	U	Open-End	0.00%
Forward Emerald Opportunities Fund	HSYTX	U	Open-End	0.48%
PowerShares Lux Nanotech Portfolio	PXN	E	ETF	0.56%
First American Small-Mid Cap Core Fund	FATCX	C+	Open-End	0.60%
Source: Bloomberg & TheStreet.com Ratings

This year AT&T plans to spend nearly $20 billion to speed up the phone line and wireless handset access to the Internet. This can only be good for all technology businesses trying to make money on the net.

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