Maybe investors showed their overwhelming support for

Dick Cheney

being added to the Republican presidential ticket, sending tech shares rocketing higher on the day

George W. Bush

announced his running mate.

Maybe not. Cheney probably had very little to do with today's rebound in the

Nasdaq

, but the important point is that tech shares did show some signs of life after a couple of down days.

The

Nasdaq

finished up 48 points, or 1.2%, at 4029.57.

TheStreet.com Internet Sector

index finished up 15.54, or 2%, at 799.23. There were a couple of notable movers.

Amazon.com

(AMZN) - Get Report

was able to survive a prominent defection, closing down 1 1/8, or 2.9%, at 37 5/8 after trading as low as 33 1/4.

Losses came on rumors that company president Joseph Galli was leaving the company. Those rumors proved true, as Galli is leaving Amazon to become chief executive officer at business-to-business company

VerticalNet

(VERT)

. Investors apparently figured that Galli was leaving for money reasons rather than because of any problems at Amazon.

TSC

was on the story as it

broke.

Akamai

(AKAM) - Get Report

closed down 22 7/8, or 21%, at 85 a day after reporting earnings. But losses did not appear to be related to the quarterly report, which generally exceeded expectations.

Akamai posted a loss of 50 cents a share for its second quarter vs. the 57-cent loss estimate, while revenue of $18.1 million was more than double the $7.2 million in the first quarter.

But message boards were abuzz about the company's lockup period, and the prospect that the stock could sell off when the lockups expire. Why investors chose to focus on this today is anyone's guess. On Aug. 1, 2.8 million shares held by insiders will be available for lockup release, while more than 58 million will be available for release on Sept. 13.

Today's rebound may have come on technical factors. Elaine Yager, senior technical analyst and vice president with

Herzog Heine Geduld

, said that the market was seeing some bargain hunting and a recovery from oversold conditions. But Yager said that after the Nasdaq violated support at the 4000 level yesterday, it suggests lower prices and nixes the second leg of the summer rally.

Yager sees the Nasdaq heading for a sideways trading pattern that "could drive everyone crazy." She said shorts could attempt to close a gap between 3583 and 3729 that was established June 1-2, though that was not a given. Gaps are seen as important areas by technicians, and the market will often go back and fill in those gaps. The upside could be limited by the July 17 high of 4289, she said, and would need to trade above that with breadth and volume to restore any sense of the upside.

Yager said the market did not get the support from earnings that it needed to get to continue higher, and traders sold the fact of good earnings after buying the rumor.

2:17 P.M.: Akamai Gets Pummeled; VerticalNet Gets New CEO

Tech shares were making small progress early this afternoon after

Federal Reserve Chairman

Alan Greenspan did not threaten the markets during his appearance this morning on Capitol Hill. There was still some hesitation, though, due to weakness in the sector over the past two sessions.

The

Nasdaq was up 20, or 0.50%, to 4001.5 in recent trading. It had traded in a range between 4035 and 3960. Stocks were able to push higher when Greenspan did not make any comments to upset the market.

TheStreet.com Internet Sector

index was up 3.35, or 0.43%, to 787,04. In a recent

piece, our own Gary B. Smith talks about investors staying the course during these tumultuous times.

There were isolated disasters in the Internet space, though the problems had not spread throughout the sector.

Amazon.com

(AMZN) - Get Report

was down 4.7% on news that company President Joseph Galli was leaving to become CEO at business-to-business company

VerticalNet

(VERT)

. And Amazon's loss (both figuratively and literally), has turned out to be VerticalNet's gain. It was up 2.5% in recent trading. The company reports earnings tomorrow.

"That cushions the blow," said Dan Ries, e-commerce analyst at

C.E. Unterberg Towbin

, of Galli's move to VerticalNet. It suggests that Galli had an economic incentive for leaving. It's far worse when an executive leaves for "personal reasons" -- which the Street has come to recognize as code for when a troubled company gives someone the boot. "We suspect that Galli, knowing that he would make a move, didn't want to be on the conference call tomorrow. His absence would have been notable."

Ries has a buy rating on Amazon. C.E. Unterberg Towbin has not done underwriting for Amazon.

Akamai Technologies

(AKAM) - Get Report

was getting pummeled, down 17.9% despite besting quarterly estimates. Akamai, which helps speed the delivery of Web pages, audio and video, posted a loss of 50 cents a share for its second quarter versus the 57-cent loss estimate. Akamai appears to be falling prey to post-earningsitis, an affliction that hits companies after they post what are seen as positive numbers. Many high-tech companies have selling off after reporting good earnings. Often the selling is profit taking. Akamai didn't have a huge run-up into its report.

Inktomi

(INKT)

, which makes Internet search technology, was down 4.2% in sympathy with Akamai.

Shares of

InterNAP Network Services

(INAP) - Get Report

were down 8.6%.

Merrill Lynch

initiated coverage of the Internet connectivity provider with a near-term accumulate/long-term buy rating.

One bright spot in the sector was the infrastructure area.

Redback Networks

(RBAK)

was up 5.75%;

Juniper Networks

(JNPR) - Get Report

climbed 5.14%. There was no news about the companies, but infrastructure firms have been among the best performing of late.

10:57 a.m.: Tech Tries for Rebound, but Amazon.com's Woes Temper Gains

Technology stocks were looking to snap out of their two-day funk, but an early rally proved fleeting.

The

Nasdaq was up just 14 to 3995 in recent trading after moving as high as 4034.80 early on.

TheStreet.com Internet Sector

index was up 2 to 786. The market was focused on another scintillating appearance from

Federal Reserve Chairman

Alan Greenspan before a Congressional panel.

Some fireworks in the Internet sector early on.

Amazon.com

(AMZN) - Get Report

was down 7.9% amid rumors that a high-level executive would resign from the online retailer.

RealMoney.com's

Herb Greenberg stresses that the talk is just a rumor, though a couple of names are being bandied about, including COO Joe Galli and CFO Warren Jenson. The rumors come a day ahead of Amazon's earnings report and Greenberg stresses could just be pre-earnings chatter. Amazon, which is based in Seattle, said it doesn't comment on market rumors.

So, there!

Among business-to-business stocks, this morning's focus was on

FreeMarkets

(FMKT)

after the company reported earnings last night. FreeMarkets was up 11.2% after reporting strong quarterly results. Our own Joe "B2B" Bousquin took a closer look at the results in a

story that ran after their release. Its 34-cent loss for the quarter blew away estimates of a 41-cent loss.

Merrill Lynch

upgraded FreeMarkets to intermediate-term buy from accumulate. Analyst Henry Blodget writes that at 13 times his 2001 revenue estimate, FreeMarkets "isn't inexpensive," but also notes that "considering the strength and likely upside of the forecast relative to other transaction-based B2B companies, many of which exceed this valuation, it is a stock we believe has long-term upside potential."

Also,

WebMethods

(WEBM)

, which fell around 12% yesterday, was up 0.7% today. It reports earnings tomorrow.

VerticalNet

(VERT)

, which also reports on Wednesday, was down 0.4%.

E.piphany

(EPNY)

, which dropped 9% yesterday, was up 5.5% today.

Finally,

Qualcomm

(QCOM) - Get Report

was up 4.9% on news that the company plans to spin off its semiconductor and systems software business.