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Updated from 8:42 a.m. EDT

Investors' enthusiasm for the stock market in the first part of the year drove revenue gains for both traditional and online brokerage firms.

PaineWebber

( PWJ) reported a 22% gain in quarterly revenue as profits increased by 10%. And

DLJdirect

( DIR), the online arm of New York-based financial services firm

Donaldson, Lufkin & Jenrette

, said revenues gained 142% while earnings jumped 90%.

Still, last week's volatility and plunge in equity markets seemed to leave investors wary of financial services firms. Despite surpassing analysts expectations, the two companies' stock received only mild boosts from investors Tuesday morning. PaineWebber shares gained 1 1/4, or 3.2%, to 40 1/16, while DLJdirect shares gained 3/8, or 3.9%, to 9 15/16. (PaineWebber finished up 2 11/16, or 6.9%, at 41 1/2; DLJdirect closed up 1, or 10.5%, at 10 9/16.)

For the first quarter ended March 31, PaineWebber, the New York-based investment services firm, reported net income of $176.3 million, or $1.16 a diluted share, compared to net income of $160.6 million, or $1.01 a diluted share, in last year's first quarter.

Analysts polled by

First Call/Thomson Financial

had expected $1.09 a diluted share for PaineWebber.

Revenue for the quarter was $1.59 billion, compared to the $1.31 billion reported in last year's first quarter.

The growth was driven by ravenous investing that marked record volumes at the nation's exchanges. Investors, especially the affluent type to whom PaineWebber caters, expanded the market for brokerage services and money management during the quarter. Both full-service firms like

Merrill Lynch

( MER) and the newer online brokers have been reporting so-called record earnings (which do not account for inflation) for the quarter.

Meanwhile, DLJdirect reported percentage gains that seem possible only in the still-nascent and growing online services sector. The quarter's revenues of $114.17 million, compare to $47.4 million in the year-ago quarter and $76.7 million last quarter.

Net income was $13.6 million, or 13 cents a diluted share, compared to $7.2 million, or 7 cents a diluted share, in the comparable quarter last year.

Analysts polled by First Call/Thomson Financial had predicted 4 cents a share.

The company's underwriting business fell from $3.5 million in the prior quarter to $3 million. The bulk of quarter-to-quarter gains were concentrated in commissions, which jumped to $74 million from $44 million in the prior quarter. The company said it executed 2.8 million trades in the quarter.