It was about what you would expect from a Monday in the middle of earnings season. There were few earnings reports to key on during the session, but investors were looking ahead and buying companies that will be reporting earnings this week.

The

Nasdaq

ended the day up 28.49, or 0.7%, at 4274.67, trading in a relatively tight range between 4215.86 and 4289.06.

TheStreet.com Internet Sector

index closed up 33.93, or 3.9%, at 896.40, as Internet stocks continued to recover. There was some hesitation ahead of tomorrow's

Consumer Price Index

report.

Traditional Internet stocks and content providers were among the best performers.

Yahoo!

(YHOO)

, which got the ball rolling last week with a stellar earnings report, closed up 3 5/8, or 2.8%, at 131 5/8.

CNet

(CNET) - Get Report

, which is scheduled to report earnings after the close today, closed up 2, or 6.4%, at 33 5/16.

Also among the day's big winners were

Terra Networks

(TRRA)

and

Lycos

(LCOS)

, which is being bought by Terra. Terra ended the day up 7 35/64, or 20%, at 45 7/16, while Lycos added 8 3/16, or 16.7%, at 57 3/8. There was no news behind the gains.

A couple of other stocks also rose ahead of what investors hope will be strong earnings reports.

Copper Mountain Networks

(CMTN)

, which was scheduled to report after the close, finished up 8 7/16, or 7%, at 123 11/16. Also,

Sycamore Networks

(SCMR)

, which reports Friday, closed up 11 7/8, or 8.6%, at 150 1/16. And

Check Point Software

(CHKP) - Get Report

, which is scheduled to report earnings on Wednesday, closed up 26 9/16, or 11%, at 260 13/16.

2:11 P.M.: Tech Bouncing Modestly as Earnings Hope Springs Eternal

Technology stocks were modestly higher around midsession. The market was waiting to see if this week's earnings would pack as much power as the ones that led to last week's rally.

The

Nasdaq

was up 37 to 4284 in recent trading.

TheStreet.com Internet Sector

index was up 29 to 891. Technical analysts remained mostly positive on the outlook for the sector.

Dick Dickson, technical analyst with

Scott & Stringfellow

, was right on the money back on

July 11 when he told us that it may be time to gamble on the upside. At that time, the Nasdaq was trading around 4027. Today, Dickson said he sees a supply/demand imbalance in favor of supply in the tech sector so he doubted the sector was off for another run similar to last year's.

However, he notes that the Nasdaq "does appear to have further to run," and expects the Comp to hit 4500. He indicates that the only negative reading he was getting came from sentiment surveys showing a large bullish sentiment, though he was not especially worried about the sentiment as there is usually a substantial lag time between extreme sentiment readings like the current one and market tops.

Robert Dickey, director of technical research with

Dain Rauscher Wessels

, sees the Nasdaq reaching resistance in the 4500 to 4600 area over the next few weeks. He believes that there is a good deal of resistance from 4500 to 5000 that will slow the trend, though higher volume and slightly better advance/decline figures could continue to improve and move the market higher, which he notes, "is the key to the longevity of the uptrend."

But, Dickey does note that the market has a tendency to peak in the months of July and August, and "is shaping up for a similar run and bump this year as well." While he still sees the Nasdaq gaining another 5% from current levels, he points out that the move has been relatively narrow, with a select number of stocks leading that way. He recommends that investors stay with those issues that have positive momentum, "because the laggards are most likely to continue to stay that way."

And we tapped in to the columnist conversation over at our

RealMoney.com

Web site to steal this little ditty from Gary B. Smith, technical analyst extraordinaire.

"I think we're in a situation where if the Nasdaq rested a day, that would be just fine," he wrote. "Just something like a little sideways movement. An 'inside day.' Really anything where we build a stair-step pattern, instead of vertical runup! Because very often when you run straight up without a pause, you run straight DOWN without a pause."

Gary B. takes a look at the charts of

Agilent Technologies

(A) - Get Report

,

Foundry Networks

(FDRY)

and

Broadvision

(BVSN) - Get Report

in his daily piece.

A couple of other movers include some of the out-of-favor Internet stocks.

drkoop.com

(KOOP)

was down 19.6% after the company pre-announced quarterly results. The online healthcare company said in a filing with the

Securities and Exchange Commission

that it will have a loss of between $1.15 and $1.18 in its current quarter. That far exceeds the 30-cent loss estimate from

First Call/Thomson Financial

. In addition, the company announced the resignations of its COO, Dennis Upah, and CFO, Susan Georgen-Saad.

Hiring of a CEO was helping shares of

theglobe.com

(TGLO)

. The company said that Charles Peck would be its new CEO effective Aug. 1. Peck comes to theglobe.com from the

American Institute of Certified Public Accountants

, where he has served as senior vice president of Marketing, Product and Organizational Development.

10:24 a.m. EDT: Tech Measures Downshift as Big Earnings Week Begins

After last week's run-up in technology shares, investors began the week wondering whether the rally would see follow-through this week or take a breather.

In early trading, the

Nasdaq was down 29, or 0.7%, to 4217.

TheStreet.com Internet Sector

index, the

DOT, was down 3, or 0.3%, to 860.

Earnings will obviously be the driving force in the market this week, and among the technology sector, traders will be keying on

Microsoft's

(MSFT) - Get Report

report tomorrow, while

America Online

(AOL)

is set to report Thursday. (The full week's

S&P 500 earnings calendar is published separately.) Both companies were in the news today.

According to

The Wall Street Journal

, Microsoft was claiming that its Internet service had 201 million worldwide users in June, besting both AOL and

Yahoo!

(YHOO)

as the most popular network destination. The numbers were based on Microsoft records, not an independent researcher. Microsoft was down 1.1% early on.

Also, AOL said it has agreed to offer some of its services through

AT&T Wireless Services

(AWE)

. AT&T Wireless' Digital PocketNet wireless users will have access to AOL's email, news, weather and stock quote services, while AOL MovieFone's local movie listings would be free through AT&T Wireless' Internet-ready phones as part of the AT&T Digital PocketNet basic service plan. AOL was off 0.3%.

Among other stocks in the news,

Liberate Technologies

(LBRT) - Get Report

was up 6.6%. The company said

Cisco

(CSCO) - Get Report

would invest $100 million in the interactive television software maker. Cisco will get a 3.9% stake in Liberate from the investment. Cisco was up 0.7%.

VerticalNet

(VERT)

was up 13.3%.

Goldman Sachs

upped its rating on the stock to its recommended list from market outperformer with a price target of 75.

Goldman analyst Jamie Friedman wrote that over the last six months, VerticalNet had entered into a new line of business, electronic component trading, but the Street has not recognized the asset. In addition, he wrote that VerticalNet's core business "is ramping faster than expected."

On the downside, shares of

Exodus Communications

(EXDS)

were off 7.9%. The losses come on news that

Global Crossing

(GBLX)

had

rejected an offer from Exodus for its competing Web-hosting business. Exodus rallied

last week on reports that a deal was in the works. Global Crossing was down 6.4%.