Sure, the hoax on

Emulex

(EMLX)

was attracting the most

attention today, but it wasn't the only thing that held down the

Nasdaq, which ended the day off 10.60 to 4042.68.

The Comp, which had cleared 4000 for the first time since July, got beat up a bit from profit-taking in tech heavyweights

Microsoft

(MSFT) - Get Report

,

Intel

(INTC) - Get Report

,

Cisco

(CSCO) - Get Report

and

Dell

(DELL) - Get Report

.

The Street.com Internet Sector

index, or DOT, rose 1.40, or 0.17%, to 803.61. The DOT was lifted by

Egghead.com

(EGGS)

,

Lycos

(LCOS)

and

Networks Associates

(NETA)

.

TheStreet.com E-Commerce Index

was up 0.36, or 0.88%, to 41.36, while

TheStreet.com E-Finance Index

also was in positive territory. It was up 1/4, or 0.55%, to 45 15/16.

If you watch

CNBC

, you've probably had your fill of Emulex. It looked like most investors did because it wasn't even in the top 10 most-active stocks on the Nasdaq at the closing bell. The stock was able to recover most of its losses, but still managed to lose 7 5/16, or 6.5%, to 105 3/4.

QLogic

(QLGC)

, which spun off from Emulex in 1992, also was affected by the hoax and ended the day down 5 13/16, or 5.3%, to 103 7/8.

So on a Friday afternoon, most people don't want to talk about urine tests, but if you were watching

Calypte Biomedical

(CALY)

today you would. The company announced that China approved its urine test for the HIV-1 strain of the virus that causes AIDS. The stock rocketed up 192%, which sounds insanely unlikely until you realize the numbers we're talking about. Translation: The stock was up 2 7/8 to 4 3/8.

Also,

Razorfish

(RAZF)

slid 7/8, or 6%, to 13 11/16 on the announcement that its president was leaving the company. The ever-volatile

Rambus

(RMBS) - Get Report

fell 4 1/16 to 86 1/8.

Stocks that weren't victimized by a hoax or by profit-takers were

Apple

(AAPL) - Get Report

,

Amazon.com

(AMZN) - Get Report

and

DoubleClick

(DCLK)

.

1:39 p.m.: Nasdaq's Battle for Gains Continues

Light profit-taking and a hoax involving

Emulex

(EMLX)

were the main features on an otherwise calm summertime Friday.

The

Nasdaq was just about unchanged at 4054 in recent trading, having hit a high of 4083.12.

TheStreet.com Internet Sector

index was up 3, or 0.4%, to 805.

Emulex dropped 57% on what the data network company

confirms was a phony press release. The release, which appeared on the Internet around the time of the opening bell, claimed Emulex would restate fourth-quarter earnings to a loss from a profit, and that regulators were probing accounting irregularities. The release also claimed Emulex executives were stepping down. The company said the release was "totally bogus."

Emulex reopened recently and recovered most of its misbegotten losses. The stock lately was down 4 11/16, or 4%, to 108 1/2 in furious trading.

That was the biggest excitement of the session. Other than that, there was some light profit-taking, as traders booked some profits from this week's rally.

Among stocks on the upside, shares of

E.piphany

(EPNY)

were up 5.2%.

Credit Suisse First Boston

put out a note saying that the company's third quarter was "tracking strong." Analyst Brent Thill said he expected some new deals to be announced after the third quarter.

PurchasePro

(PPRO)

was up 14.2%.

Prudential Securities

analyst Tim Getz put out a note saying the company was undervalued. Getz indicated that PurchasePro trades at 9.2 times its estimated 2001 gross profits, compared to 25.5 times for B2B companies on average. Prudential has done underwriting for PurchasePro.

Elaine Yager, senior technical analyst and vice president with

Herzog Heine Geduld

, said although rallies have been on light volume, the ability of the semiconductor index to turn up so abruptly in August after being beaten down in July has set the tone on the upside.

"It's summertime, it's vacation time and cash on the sidelines could be a feature on the upside over the next two weeks," she said. Investors know well that the September/October period can be "brutal" for stocks, according to Yager. So she expects selectivity and knowing one's company will be of the utmost importance.

Yager also said that a downturn of any significance, in terms of price, could be "short and sweet" relative to time due to the "January effect" coming earlier and earlier. (The January effect refers to the buying of stocks that have been downtrodden in the past year and have suffered most from tax-loss selling.) Many mutual funds close their books in October. At this time, Yager sees the immediate target for Nasdaq being the buy-stops at the 4289 reaction peak set July 17. She said the market would need a whole new rash of buyers to sustain upside action above there.

11:09 a.m.: Nasdaq Struggling in Early Action

The

Nasdaq may struggle to hold above the 4000 level. Positive sentiment has had traders sponsoring dips, but the tech heavy index was lately trading lower.

The Nasdaq was off 16.7, or 0.41%, to 4036.7.

TheStreet.com Internet Sector

index was off 3.72, or 0.46%, to 798.49.

There were a number of stocks that were on the move. Shares of Internet consulting firm

Razorfish

(RAZF)

were down 12.2% after the resignation of President Michael Pehl. There were mixed notes on the resignation from research houses. While noting that they have a "high degree of confidence" in Chief Operating Officer J.P. Maheu,

Deutsche Banc Alex. Brown

downgraded the stock to buy from strong buy.

Deutsche Banc analyst Mark Annolfo wrote that the announcement "was abrupt and leaves some management gap." He indicated that the resignation could also stimulate turnover among former I-Cube personnel over the next few quarters, though he also notes that voluntary turnover at Razorfish over the last four quarters has been at or below 12%, a rate he said is impressive. Razorfish bought I-Cube last year.

But others suggested any weakness in the stock as a result of the resignation could be a buying opportunity.

Credit Suisse First Boston

said the impact of the resignation was to "perception" not fundamentals. Analyst Mark Wolfenberger said the announcement could weigh on the stock because the company recently denied speculation of Pehl's departure. He reiterated a strong buy rating on the stock. Credit Suisse First Boston has done underwriting for Razorfish.

Sycamore Networks

(SCMR)

was down 4.9% despite beating earnings estimates. The fiber optics network equipment company

reported earnings of 8 cents a share, beating the 6-cent profit estimate.

Analysts at

Lehman Brothers

said the company had a "breakthrough quarter" and reiterated their $200 year-end price target on the stock. Analyst Steven Levy wrote that while Sycamore continues to trade at "lofty valuations, even on a price to revenues multiple analysis," he felt that the valuation could be justified "due to the continued significant outperformance of the financial results, strong product offering, and extremely open-ended nature of the intelligent optical access, switching, and core transport markets. Lehman has done underwriting for Sycamore.

Finally,

DoubleClick

(DCLK)

was up 8%, continuing its impressive run this week. Analysts at Credit Suisse First Boston put out a somewhat cautious note on the stock, questioning whether the stock was "back from the dead" or it was seeing a "dead cat bounce." While noting that the stock has had some near-term catalysts that drove it 26% higher in the past two sessions and that he has been positive on the stock for the long-term, analyst Rich Petersen suggests that the online advertising agency is not out of the woods, yet.While noting that the sector was heading toward a seasonally strong quarter for advertising, "the outcome for the pivotal month of September is still fuzzy." He concludes by writing that "we are not sure this is quite the point to back the truck up, but things certainly are looking up for the advertising sector as a whole and DoubleClick in particular." He reiterated a strong buy rating and $75 price target. Credit Suisse First Boston has not done underwriting for DoubleClick.