Net Stocks Gain, but Still Lag Tech Sector

Author:
Publish date:

While the technology sector has been unable to build on its early gains, the sector remained in positive territory around midsession.

The

Nasdaq

was up 73.88, or 2.3%, at 3344.49 in recent trading after reaching a high of 3365.84. It stopped ahead of the 3390 level, which was roughly the high from both Monday and Tuesday and the close last Friday. Sellers could emerge if that level is not taken out. Internet stocks were lagging the rest of tech.

TheStreet.com Internet Sector

index was up 16.84, or 2.2%, at 788.09.

Alan Loewenstein, co-portfolio manager with the $2.3 billion

John Hancock

(NTTFX)

Technology Fund, said that his fund was continuing to add to positions in stocks that reached levels that the fund likes. Though he would not name the stocks the fund was buying, some of its top holdings include

Micron Technology

(MU) - Get Report

,

Cisco

(CSCO) - Get Report

,

EMC

(EMC)

and

Cienna

(CIEN) - Get Report

.

Loewenstein said that technology fundamentals were healthy based on strong first-quarter numbers and the outlook for the rest of the year. He hopes the

Fed

will stop raising rates soon and he expects a rally in the second half of the year, which was typical for an election year. He said this week's drop below April lows was negative, and he was unsure whether aggressive selling would emerge should the Nasdaq climb to 3600.

Among the sector's best performers,

Exodus Communications

(EXDS)

was up 6 1/2, or 11.2%, at 64 1/2 after dropping around 7% yesterday.

WebMethods

(WEBM)

, which has been pummeled since announcing it was buying

Active Software

(ASWX)

Monday, was up 7 23/32, or 12.6%, at 69.

Net2Phone

(NTOP)

was up 3 11/16, or 15%, at 28 3/16. Net2Phone is one of the participants in

priceline.com's

(PCLN)

new long-distance service. priceline was up 2 1/8, or 5.8%, at 38 5/8.