Tech stocks closed off highs but ended a highly successful week on a positive note, despite traders' urge to take profits into the long weekend.

The

Nasdaq

closed up 27.92, ,or 0.66%, at 4234.27, though it had traded as high as 4259.87 on

economic data that suggested the

Federal Reserve

could be out of the markets' face for some time. Internet stocks were mixed.

TheStreet.com Internet Sector

index closed up 6.31, or 0.75%, at 846.77. Traders were encouraged to take profits as the Nasdaq neared key resistance at the July 17 high of 4289, but others were quick to buy on the dip, sensing good things to come when traders come back from the holiday.

Worst performers in the Internet sector were e-consulting companies. They were pummeled by an earnings

warning from

Viant

(VIAN)

. Viant closed down $5.69, or 41%, to $8.19, and dragged down a number of others as well.

Scient

(SCNT)

closed down $5.06, to 18.7%, to $22. Kudos to

First Union Securities

, which downgraded Scient

yesterday. Also taking a hit was

Proxicom

(PXCM)

, which closed down $4.06, or 16.8%, to $20.13;

Rare Medium Group

(RRRR)

, down 25 cents, or 2.5%, to $9.75; and

Modem Media

(MMPT)

, down 63 cents, or 5.9%, to $9.94.

Yahoo!

(YHOO)

continued to be the whipping boy for the Internet sector, closing down $7.56, or 6.2%, to $113.94. This time

The Wall Street Journal

ganged up on the super portal, regurgitating concerns that it will suffer from a slowdown in online advertising.

On the upside,

BroadVision

(BVSN) - Get Report

added $4.56, or 13.2%, to $39.06. The company put out a press release saying it will hold a conference call Tuesday to discuss details of a new wireless venture that it believes "will have a far-reaching, global impact."

Also among the better performers were

Lycos

(LCOS)

and

Terra Networks

(TRRA)

on optimism that their merger will go through. Lycos finished up $3.63, or 5%, to $74.63, while Terra added $2.88, or 7.2%, to $43.

3:41 p.m.: Tech Stocks Continue to Slip, but Traders Buy on Dip

Who could blame investors for taking some profits ahead of the long weekend? And while technology stocks have come off their highs, traders were quick to buy on the dip, a more telling sign that things are still positive in the sector.

In recent trading, the

Nasdaq

was up 21.4, or 0.5%, to 4227.7 though it had traded as high as 4259.87 following some friendly economic data this morning. But with the market rallying much of the week, traders decided to take some money off the table. Blankets of weakness among Internet stocks left

TheStreet.com Internet Sector

index had hopped 2.2, or 0.3%, to 842.6.

The Nasdaq was within spitting distance of a key level that technicians have been targeting. It reached a high of 4289 on July 17 and on its first return trip to that area, it is only natural for traders to want to take some profits due to the significance of that level. A clear break and close above the 4289 level would likely encourage additional technical-related buying.

One stock that appeared to be seeing some technical-related selling was

VeriSign

(VRSN) - Get Report

. Note that the stock traded as high as $200.50 on June 8, which was its highest level since March 27. Today, it reached a high of $199.88, climbing nearly straight up after trading as low as 137.75 on Aug 11. It was down $12.13, or 6.1%, to 186.69 in recent trading.

But while VeriSign was mostly likely seeing some good old fashioned profit-taking, there were some more serious problems among the Internet consulting companies after

Viant's

(VIAN)

earnings announcement Thursday. Viant was down $5.75, or 41.44%, to $8.13 in recent trading and was dragging other e-consulting companies down with it.

Scient

(SCNT)

was down $4.88, or 18%, to $22.18;

Proxicom

(PXCM)

was off $3.44, or 14.21%, to $20.75;

Rare Medium Group

(RRRR)

was down a quarter, or 2.5%, to $9.75; and

Modem Media

(MMPT)

was down 56 cents, or 5.3%, to $10.

And

Yahoo!

TST Recommends

(YHOO)

continued to feel the one-two punch thrown at it from both a research house earlier in the

week and

The Wall Street Journal

today. It was down $8.50, or 7%, to $113 on concerns about a slowdown in online advertising.

Finally,

Netopia

(NTPA)

was down $10.06, or 27.5%, to $26.50 after being downgraded by

Kaufman Brothers

to buy from strong buy.

11:08 a.m.: Nasdaq Struggles to Gain Despite Jobs Report; Consultants Plunge

Investors initially cheered an

employment report

that showed the economy continues to slow and could keep the

Federal Reserve sidelined for the foreseeable future, seemingly ignoring that it may also be suggesting that businesses could be suffering if the economy is in the midst of a slowdown.

Well, maybe that clammy underbelly of the economic news got into a few heads as the morning wore on. The

Nasdaq lately was up 6, or 0.2%, to 4213, having traded as high as 4259.87. It had dipped into negative territory but then bounced again.

TheStreet.com Internet Sector

index, the

DOT, was off 8, or 1%, to 832.

A number of traditional Internet stocks were in the news.

America Online

(AOL)

was down 2.5%. The Internet service provider said it was buying

Quack.com

, a privately held company with a telephone service that enables people to get stock quotes, sports news and other information via automatically recognized voice commands.

As our own George Mannes pointed out in a

story last night, the deal translates into a windfall of AOL stock for auction site

Bid.com International

, which holds a minority position in Quack.com. Bid.com was up 33.3%.

A pat on the back to

Robinson Humphrey

analyst Russ Miles. Miles put out a note post-haste in a response to a story in this morning's

The Wall Street Journal

regarding

Yahoo!

(YHOO)

and the negative implications from a slowdown in online advertising. The Robinson Humphrey analyst contends that the story "unfairly" groups Yahoo! with

Amazon.com

(AMZN) - Get Report

, though this might be stretching things a bit. The article does mention Amazon as a company that fallen from grace as having failed to live up to the Web-retailing promise, but says Yahoo!'s concerns speak to the failed promise of Web-based advertising.

The analyst claims that Yahoo!'s story has not changed and it has "a very strong model that will only get stronger when broadband enables rich-media advertising."

"Yahoo! is a real business, with strong profits and a solid balance sheet," he writes. "Unfortunately, it is being punished for the many dot-coms that are not strong businesses. Yahoo! should aggressively consolidate the industry and emerge even stronger once this B2C dot-com shake-out is complete."

He concludes that long-term investors should buy Yahoo! on "media-related" weakness, indicating that investors had bought the stock in July, when similar concerns arose, they would have reaped a 19% gain.

"Investing in Internet companies is not easy at this point in time. There are too many faulty models that still need to be weeded out. However, buying the best companies in industries that will grow dramatically over the coming years is not that difficult. The Internet will continue to flourish, especially when broadband helps to eliminate some of the near-term concerns analysts have. Yahoo! will be a major force in the Internet's development and we believe it serves investors well to use opportune moments like this to buy this industry leader."

Internet consulting company

Viant

(VIAN)

was trading lower in an up market after it

warned that it expects to report a loss for the third quarter of 2000. The company said it expects revenue for the third quarter to fall about 12% to 15% below the $38.5 million revenue figure reported for the second quarter.

Viant President and CEO Bob Gett attributed the revenue shortfall to the perception that "many Global 2000 companies have slowed down their e-business initiatives and have taken the opportunity to step back and revisit their strategies."

Also feeling the impact of the warning were other e-consulting companies.

Scient

(SCNT)

was down 16.4%;

Proxicom

(PXCM)

was off 17.3%;

Rare Medium

(RRRR)

was down 2.5%; and

Modem Media

(MMPT)

was down 5.3%;

Finally, principals in the

Lycos

(LCOS)

-

Terra Networks

(TRRA)

merger were up strongly on talk that the deal was close to completion. Lycos was up 4.9%, while Terra was up 6.4% and Terra parent

Telefonica

(TEF) - Get Report

was up 8.4%.