One sign of a bear market, good news gets ignored. A couple of positive items in the Internet sector were having little to no impact as technology stocks continued to get pummeled early today.

TheStreet.com Internet Sector

index was down 34.38, or 3.9%, to 849.18 in early trading. The

Nasdaq

was off 101.24, or 2.9%, to 3437.40.

Among stocks in the news,

Yahoo!

(YHOO)

was down 1 9/16, or 1%, to 130 7/16 after holding its analysts' day yesterday. The press wasn't allowed into the meeting, but that didn't stop our own Valley Boy,

Adam Lashinsky

, from getting the

scoop on what went on.

Morgan Stanley Dean Witter

analyst

Mary Meeker

, a Valley Girl in her own right, wrote glowingly about Yahoo! She believes Yahoo! shares "are underowned, and relative to the company's opportunities, very compelling."

Meeker presented a long list of projected key Internet company success factors like large market opportunities and good technology or services that offer a significant value proposition to customers, and noted that Yahoo! has essentially all of those factors. And she also went back to review her note on Yahoo! from its first analysts' day in March 1999.

"The 1999 meeting was clearly impressive, but what struck us about the meeting this year is: 1) the company has made significant progress vs. its goals; and 2) the story this year impressed us as so powerful and broad that it almost made the impressive 1999 meeting seem quaint."

Sycamore Networks

(SCMR)

had what was by most accounts a blowout quarter, but found itself down 7 1/4, or 8%, to 85. Note that the stock had rallied by more than 50% between May 10 and May 18, so today's losses are likely just profit-taking after the fact of a good report. Sycamore reported earnings of 5 cents a share for its fiscal third quarter, beating expectations by 2 cents.

Our own

James Cramer

took a look at Sycamore in an earlier

piece, while

Lehman Brothers

analyst Steven Levy had some kind words on the company. Lehman has done underwriting for Sycamore.

Levy wrote that any way you looked at the company, Sycamore's results were "incredibly impressive." He increased sales estimates for calendar 2001 by $100 million to $545 million and earnings per share for calendar 2001 by almost 70%, to 27 cents from 16 cents. Levy also took on the stock's valuation.

"Given Sycamore's unique characteristics it seems fitting that investors should apply a unique valuation, and many people would probably say that a stock selling for 78 times this calendar year's revenues and 419 this year's EPS is extremely unique. We would argue, however, that the company's recent financial performance, its outstanding near-term outlook and its incredibly exciting longer-term forecast more than justify the valuation and therefore we remain comfortable with our year-end price target of $200," he wrote.

RealNetworks

(RNWK) - Get Report

was down 1/2, or 1.4%, to 35 7/8.

Credit Suisse First Boston

initiated coverage of the stock with a buy rating and a price target of 57. Analyst Heath Terry wrote that the stock had a "relatively low valuation," and was positioned to be the enabler, host and aggregator of much of the available" streaming media content.

Terry noted that while

Microsoft

(MSFT) - Get Report

"will always be a fierce competitor, we believe the superior client software and widely compatible server platform offered by RealNetworks, as well as the network effect created by its dominant market share of both content and users, makes the company's leading position very defendable." Credit Suisse First Boston has not done underwriting for RealNetworks.