Pulse: The Semis Give Tech the Juice on a Lucky Friday the 13th - TheStreet

A surge by semiconductors helped fuel today's much-needed gains in tech stocks and the

Nasdaq

, which finished more than 200 points higher.

The

Comp

called it a day at 3316.77, a gain of 242.09, or 7.9%. It was the second-biggest percentage gain and third-biggest point increase for the crucial index.

Recently,

Intel

(INTC) - Get Report

sent technology stocks tumbling when it

admitted that sales didn't grow in line with expectations due to weak demand in Europe. The chipmaker's value had been sliced almost in half since trading at a high of $75.81 in late August.

But today it retraced almost 9% as investors realized that the slowdown in Europe will not last forever. Many investors were convinced that sales in Europe should rebound next year, and demand for processors that run PCs and networking gear will remain steady, according to a

Bloomberg

article published this morning.

The bullishness in Intel spread like falling dominoes to chip-equipment makers

Altera

(ALTR) - Get Report

and

Applied Materials

(AMAT) - Get Report

, the two major equipment suppliers to Intel. They were up 17% and 11%, respectively.

All but two dots on the DOT were smiling today. In a complete turnaround from yesterday's bleak scenario,

TheStreet.com Internet Sector Index

finished 6% higher, recouping all of yesterday's losses.

DOT component

RealNetworks

(RNWK) - Get Report

did not feel the love, tumbling 10% on concerns that the Internet-media software maker could be hit by a slowdown in online advertising revenue. The company has been trading at lows this week and was further aggravated by

DoubleClick's

(DCLK)

disappointing third quarter and warning of a slowing online ad sales environment. DoubleClick ended the day 31% lower at $12.87.

The

Morgan Stanley High-Tech 35

also ended on a chipper note. It was up 8.6% today and up almost three points from last week's close of 902.44. Despite a scary and disheartening week, big-cap stocks made a come back and even edged a bit higher on the week.

1:57 p.m.: Lucky Day for Tech So Far

It's nice to see green in tech land. The

Nasdaq was floating almost 4% above water, standing on the shoulders of the buoyant semiconductor sector, up 7% by midsession, continuing yesterday's ascent.

TheStreet.com Internet Sector Index

was the jolly green index, rising 2% after yesterday's 6% drop and despite bad news from online ad agency

DoubleClick

(DCLK)

.

DoubleClick was falling 36% to $11.69 after posting wider-than-expected third-quarter losses last night and admitting that sales will slow during the next six months. DoubleClick's third-quarter loss widened to $10.7 million, or 9 cents a share, from $136,000, or break-even from a year-earlier. The best known Internet ad agency sank to a 52-week low of $11 today before recovering slightly, and pulled competitors

24/7 Media

(TFSM)

and

Engage

(ENGA)

down with it. The shares were down 12.5% and 8.8%, respectively.

What saved the DOT from getting crushed under the weight of DoubleClick's fall was that the bad news was largely expected and had mostly been factored into Internet stock prices early this week.

As a result of slowing growth, DoubleClick officials predicted that the Internet advertising industry would consolidate over the next few months. DoubleClick is well positioned in this environment according to analysts.

"We continue to believe that DoubleClick will be one of the long-term survivors, but the next two quarters ware likely to be similarly rought," wrote

Merrill Lynch

analyst

Henry Blodget

in a morning research note. Blodget cut his EPS estimate on the company to between 10 and 20 cents from 37 cents. It's nice to see green in tech land. The

Nasdaq was floating almost 4% above water, standing on the shoulders of the buoyant semiconductor sector, up 7% by midsession, continuing yesterday's ascent.

TheStreet.com Internet Sector Index

was the jolly green index, rising 2% after yesterday's 6% drop and despite bad news from online ad agency

DoubleClick

(DCLK)

.

DoubleClick was falling 36% to $11.69 after posting wider-than-expected third-quarter losses last night and admitting that sales will slow during the next six months. DoubleClick's third-quarter loss widened to $10.7 million, or 9 cents a share, from $136,000, or break-even from a year-earlier. The best known Internet ad agency sank to a 52-week low of $11 today before recovering slightly, and pulled competitors

24/7 Media

(TFSM)

and

Engage

(ENGA)

down with it. The shares were down 12.5% and 8.8%, respectively.

What saved the DOT from getting crushed under the weight of DoubleClick's fall was that the bad news was largely expected and had mostly been factored into Internet stock prices early this week.

As a result of slowing growth, DoubleClick officials predicted that the Internet advertising industry would consolidate over the next few months. DoubleClick is well positioned in this environment according to analysts.

"We continue to believe that DoubleClick will be one of the long-term survivors, but the next two quarters ware likely to be similarly rought," wrote

Merrill Lynch

analyst

Henry Blodget

in a morning research note. Blodget cut his EPS estimate on the company to between 10 and 20 cents from 37 cents.