Investors last week shifted money from money market funds and U.S. Treasuries to technology stocks as some companies' fourth-quarter earnings beat expectations.
The average technology fund we track gained 2.5% in the five trading days ending Feb. 5, excluding inverse funds that sell short technology and Internet stocks.
(AMZN - Get Report)
, which surged 26.4% in the five trading days, had its best holiday season ever. In the latest quarter, the company increased net income by 8.7% to $225 million from a year earlier on $6.7 billion in sales, up 18%.
Adding to its sales of digital music and videos, Amazon.com has expanded its offerings to include a library of more than 600 casual games at a sub-$10 price point. The company also will begin collecting payment-processing fees on its Amazon Flexible Payments Service in June.
At 34.4% of assets, Amazon.com is the largest holding of
Internet HOLDRs Trust
, the best-performing technology fund, gaining 11.7% last week.
(YHOO - Get Report)
, the fund's second-biggest holding, rose 15.1% after it announced it was shutting its "Briefcase" storage service.
(EBAY - Get Report)
, up 7.8% for the period, integrated its payment-processing system with Moneybookers USA.
Ultra Semiconductor ProShares
, the second-best-performing technology mutual fund, up 11.67% on 200% leverage, and
Semiconductor UltraSector ProFund
, the sixth-best performer, up 10.49% on 150% leverage, track stocks in the Dow Jones U.S. Semiconductor Index.
Standouts among the holdings include
, up 14%;
, up 13%; and
, up 12.6%. Judicial proceedings in
patent case were halted as the claims were deemed to be "unenforceable" against Micron.