The Queen of the Internet hath spoken. Shortly before the market's close,

Morgan Stanley's

influential analyst, Mary Meeker, declared that the worst is over for select Internet stocks. Among the companies Meeker likes are





(EBAY) - Get Report


Cisco Systems

(CSCO) - Get Report


Sun Microsystems

(SUNW) - Get Report

, and

Lucent Technologies



Shares of Yahoo! jumped 14 7/16, or 12%, to 134 1/2; eBay closed up 9 13/16, or 14.6%, to 77 3/16; Cisco finished 3 7/16 higher, or 5.6%, to 64 3/8; Sun Microsystems ended the day up 5 5/16, or 6.4%, to 88; Lucent ended ahead 3, or 5%, to 63.

Overall, the


finished the day ahead 230.8, or 6.44%, to 3813.3. The gain was its third-largest point gain and fifth-largest percentage rise ever. Internet Sector

index ended up 95.5, or 11.24%, to 945.42, getting an extra bounce after Meeker made her remarks.

The impetus for the daylong rally in the technology sector was this morning's

employment report. The

Labor Department reported that

nonfarm payrolls

grew by 231,000, compared to the 386,000 forecast by economists polled by




unemployment rate

was 4.1%, vs. the 3.9% prediction, while

average hourly earnings

were up 0.1%, in contrast to the 0.4% percent rise expected. Wall Street analysts envisioned that soft data would boost the market. Reports pointing to a slowing in the economy have fueled speculation that the

Fed may be less tempted to continue raising interest rates.

In individual stock news, the chief of Internet search engine



, Robert Davis, announced that he expects the combined revenue of


and its merger partner, Spain's

Terra Networks


, to exceed the revenue of Web giant Yahoo! by late 2001 or early 2002.

Additionally, Davis told the

Silicon Alley Reporter International Network 2000 Conference

in New York that he expects the combined company will use the ample cash it expects to have on hand to go after acquisitions to help fuel growth. Shares of Lycos popped 6 15/16, or 10.8%, to 71 3/16, while Terra Networks fired up 5 5/8, or 12.78%, to 49 5/8.

Web music retailer



more than doubled today, after the troubled company said that it expects to announce a deal involving a merger partner or investor this month. CDNow pumped up 2 9/16, or 110.8%, to 4 7/8. In March, CDNow stated that it was seeking a merger partner or investor. Worries about the company's future have battered the stock in recent months.

Merrill Lynch

today initiated coverage of



as an intermediate-term accumulate. "In our opinion," Merrill's research note begins, "chinadotcom is more than a Chinese-language portal, as it is often considered to be, but rather a pan-Asian Internet firm that is building a network of several Internet companies." chinadotcom finished the trading session up 4 1/16, or 17.06%, to 27 7/8.