Net Sector Rebounds as DOT Flirts with All-Time Closing High

The traditional Net stocks bounced back in a big way.
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We hate to rain on anyone's parade, but there is an employment report coming out tomorrow. Perhaps it doesn't matter and money will continue to flow into technology stocks even if the jobs report increases fears of a Federal Reserve tightening.

Net stocks and the rest of the technology sector took off today after an overbought condition was somewhat alleviated over the past few sessions.

TheStreet.com Internet Sector

index closed up 51.91, or 5.6%, at 977.20, near its all-time high closing price of 985.61 from Nov. 26.

Gains were widespread.

Yahoo!

(YHOO)

was up for the second straight day since

Standard & Poor's

said the Web portal would be added to the S&P 500. It finished up 16 15/16, or 7.4%, at 245 13/16, topping its previous all-time high of 244 hit April 6. Yahoo! jumped on heavy volume around 2:45 EST, suggesting buying from funds that are benchmarking to the S&P.

America Online

(AOL)

bounced back from a couple of down days to close up 3 7/8, or 5.1%, at 80. AOL announced separate deals with

Net2Phone

(NTOP)

and

Monster.com

, a unit of

TMP Worldwide

(TMPW)

. Net2Phone closed up 9/16, or 1%, at 56, though it traded as high as 59 3/8. TMP Worldwide closed up 32 1/16, or 34%, at 127 1/16.

Other traditional Net stocks also shone.

Lycos

(LCOS)

closed up 6 1/8, or 10.5%, at 64 1/4 on news that it would provide Web content to wireless products from

Ericsson

(ERICY)

.

priceline.com

(PCLN)

closed up 4 7/16, or 7.3%, at 65 1/16 after

Prudential Securities

initiated coverage of the stock with a strong buy rating.

And

Amazon.com

(AMZN) - Get Report

finished up 4 1/16, or 4.8%, at 89 1/16. A judge granted Amazon a preliminary injunction against

barnesandnoble.com

(BNBN)

prohibiting it from using a version of Amazon's 1-click technology. 1-click allows online shoppers to purchase items just by clicking a button so shoppers do not have to fill out shipping and purchasing data. barnesandnoble.com ended down 3/8, or 1.9%, at 19.

And the

Red Hots? En fuego.

Juniper Networks

(JNPR) - Get Report

closed up 27 5/8, or 10.1%, at 300. The company is expected to make a new-product announcement and announce a new customer on Dec. 7.

Ask Jeeves

(ASKJ)

, which has all the characteristics of a Red Hot, closed up 17 1/8, or 14.7%, at 133 1/2 on no apparent news.

It also was a perfect day for an Internet stock to go public.

McAfee.com

(MCAF:Nasdaq), which provides antivirus, Y2K compliance and security services for computers, ended up 32, or 267%, at 44.

The Knot

(KNOT:Nasdaq), a Web site that helps with wedding preparations, closed up 5, or 50%, at 15 after trading as high as 21. And

Metalink

(MTLK:Nasdaq), an Israeli company that makes digital subscriber line chip sets, closed up 11 13/16, or 98.4%, at 23 13/16.