Internet Sector Warms Up, Led by Red Hots

Money is flowing back into technology and Internet issues after a recent string of profit-taking.
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Three consecutive down days were apparently enough for Internet investors. Money was flowing back into technology stocks and Internet issues after traders booked some profits over the past few days.

TheStreet.com Internet Sector

index was recently up 38.30, or 4.1%, at 963.59. Gains have come after the DOT held support by closing above the Nov. 23 low of 924.88 yesterday. While the DOT has been firm all session, it was not building on gains as investors showed some restraint ahead of Friday's employment report.

James Padinha

looked ahead to the payroll report in a

column yesterday.

Investors were throwing money into the sector, and nothing shows it better than price action in the

Red Hots. Among the big movers was

Juniper Networks

(JNPR) - Get Report

, up 30, or 11%, at 302 3/8. The rise could stem from publicity that the company will make a new product announcement as well as announce a new customer on Dec. 7.

Also,

Ariba

(ARBA)

was up 9, or 4.8%, at 197. Ariba and

USinternetworking

(USIX)

announced a strategic partnership to provide end-to-end business-to-business e-commerce application services. Under the agreement, USinternetworking will provide Ariba with solutions for midsize and large companies through the applications service provider model. USinterworking was up 12 5/16, or 21%, at 72.

While not a Red Hot,

Ask Jeeves

(ASKJ)

is certainly a red-hot stock. It was up 14 5/8, or 12.6%, at 131. The Jeeves man is a favorite of

TSC's

James Cramer

, who has been

focusing on the business-to-business side of the game with his rotisserie league contest.

In that piece, Cramer also explains recent weakness in

America Online

(AOL)

, which has been under pressure over the past few days due to its sale of $1.25 billion in 20-year zero coupon subordinated notes. It was up 2 11/16, or 3.5%, at 78 13/16 in recent trading.

Here's what Cramer said if you're too lazy to click over: "What happens here with a convertible is that institutions take down the paper and then short common against it to lock in a return. That is why there was so much pressure on the stock. Once that arbitrage is fully completed, the pressure comes off and the stock lifts."

Among other stocks in the news,

Ticketmaster Online-CitySearch

(TMCS)

was up 4 1/8, or 14%, at 33 7/8.

USA Networks

(USAI) - Get Report

, which already has a stake in Ticketmaster Online-CitySearch, has invested another $40 million in the company.

Bear Stearns

, which has done underwriting for Ticketmaster Online-CitySearch, reiterated that the stock was its top pick in the small- to mid-cap sector.