Investors Jump Back Into Net Sector After Early Dip

Despite a strong jobs number and last night's Lucent warning, stocks are rebounding.

Author:: David Shabelman
Publish date:: Jan 7, 2000 10:56 AM EST

Despite a strong jobs number and last night's Lucent warning, stocks are rebounding.

A strong payroll figure and Lucent's (LU) earnings warning weren't enough to dissuade investors from getting back into the Internet sector.

TheStreet.com Internet Sector

index was up 38.93, or 3.8%, at 1065.33 in recent trading. The DOT dipped on the opening to 1023.26, but never fell below yesterday's low of 1022.55. Investors may have seen Thursday's sharp drop as a good entry point ahead of what should be a positive earnings season, kicking off Tuesday with

Yahoo!

(YHOO)

. And while the headline payroll number in the employment report was large, other components didn't stir up fears that the

Fed

would need to raise interest rates aggressively. As we

mentioned before, traders may have been waiting for the employment report to get out of the way before putting money back to work.

Many of the sector favorites were rebounding after dropping big over the past few sessions. Yahoo! was up 18 1/16, or 4.9%, at 386.

CMGI

(CMGI)

, which has seen heavy profit-taking lately, was up 16 7/16, or 6.6%, at 266 7/16.

Internet Capital Group

(ICGE)

was up 11 1/4, or 7.5%, at 166 1/4, while

DoubleClick

(DCLK)

was up 17 1/2, or 9%, at 216 1/2. Many stocks in

TheStreet.com New Tech 30 index were also screaming ahead.

Among stocks in the news,

RealNetworks

(RNWK) - Get Report

was up 9 13/16, or 9%, at 123 on news that it had entered into a pact with

Seagram's

(VO) - Get Report

Universal Music Group

The Wall Street Journal

reported. The agreement will allow digital music from Universal's catalog to be sold and played on RealNetworks' RealJukebox software. Universal also will distribute RealJukebox.

Wal-Mart

(WMT) - Get Report

said it was joining with Silicon Valley-based venture capital firm

Accel Partners

to form

Wal-Mart.com

, a Palo Alto, Calif.-based, independent concern that they intend to take public. Wal-Mart was up 1 3/8, or 2%, at 65 1/16.

E-tailer

Amazon.com

(AMZN) - Get Report

was up 4 7/16, or 7%, at 70, recovering from recent weakness after announcing its fourth-quarter sales were strong, though without an improvement in the bottom line.