Tech Funds Rebound on Earnings Surprises

The third-best-performing fund was the PowerShares NASDAQ Internet Portfolio(PNQI). Its positions include Art Technology Group(ARTG), which also beat earnings expectations, popping 28.7% last week. Another holding, Shutterfly(SFLY), up 24.8%, announced a 10% revenue improvement over the same period. Likewise, Akamai Technologies(AKAM) added 24.1% on better-than-expected earnings and revenue.

Best-Performing Technology Funds for the Week Ending Thursday Feb. 5 Fund Ticker Rating Fund Type 1 Week Total Return Internet HOLDRs Trust HHH D+ ETF 11.70% ProShares Ultra Semiconductors USD D- ETF 11.67% PowerShares NASDAQ Internet Portfolio PNQI U ETF 11.25% ProFunds Internet UltraSector ProFund INPIX E- Open-End 10.71% ProFunds Semiconductor UltraSector ProFund SMPIX E- Open-End 10.49% Semiconductor HOLDRs Trust SMH C- ETF 7.85% SPDR S&P Semiconductor ETF XSD D ETF 7.63% Direxionshares Technology Bull 3X Shares TYH U ETF 7.13% First Trust Dow Jones Internet Index Fund FDN D ETF 6.70% Rydex Series - Electronics Fund RYSIX E Open-End 6.43% Source: Bloomberg & TheStreet.com Ratings

Skipping past the two inverse exchange-traded funds, the third-worst-performing technology fund last week was the Mobile Telecommunications UltraSector ProFund(WCPIX), down 3.45%. The fund's largest holding, at 23.4% of assets, is Sprint Nextel(S), which shed 9.7% of its value. Sprint lost a $73 million California case back in July 2008 on early-termination fees and is under the gun for a similar $1.2 billion class-action suit filed in November.

The culprits in the fourth-worst-performing fund, PowerShares Dynamic Media Portfolio(PBS), which was off 3.33% last week, were Monster Worldwide(MWW), losing 18.6%; Walt Disney(DIS), down 12%; Comcast(CMCSA), losing 9.8%; and Time Warner(TWX), off 3.5%.

Monster's own Monster Employment Index, which tracks U.S. online job demand, declined 26% over the past year and bodes poorly for job prospecting in 2009. Monster's fourth-quarter revenue fell 16%. Disney's earnings declined 32% as sales slumped 8% to $9.6 billion, hurt by some consumers looking for cheaper entertainment.

Worst-Performing Technology Funds for the Week Ending Thursday Feb. 5 Fund Ticker Rating Fund Type 1 Week Total Return ProShares UltraShort Semiconductors SSG A+ ETF -11.32% ProShares UltraShort Technology REW C ETF -5.38% ProFunds Mobile Telecommunications UltraSector ProFund WCPIX E- Open-End -3.45% Powershares Dynamic Media Portfolio PBS D+ ETF -3.33% Rydex Inverse 2X S&P Select Sector Technology ETF RTW U ETF -3.29% SPDR S&P International Technology Sector ETF IPK U ETF -3.05% PowerShares Dynamic Hardware & Consumer Electronics PHW D ETF -2.90% iShares S&P North Amer Tech-Multimedia Networking Index Fund IGN C- ETF -1.65% Broadband HOLDRs Trust BDH D+ ETF -1.38% Fidelity Advisor Communications Equipment Fund FDMAX E Open-End -1.30% Source: Bloomberg & TheStreet.com Ratings

Even if U.S. online retail sales growth, as estimated by Forrester Research, does slow to 11% in 2009 from 13% in 2008, that is still $156 billion in sales and an expectation of double-digit growth while the overall economy contracts.

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