The Night Watch: After-Hours Investors Focus on Internet Stocks - TheStreet

(Updated from 7:20 p.m. EST)

Internet stocks -- which captured investors' attention during the day -- drew market players back into the game tonight.

The daytime session saw mixed activity on the major averages: The

Nasdaq Composite Index, bolstered by strength in Internet and software stocks, gained 45.4 points to 2441.3, while the

Dow Jones Industrial Average lost 48.8 points to 10,572.55.

TheStreet.com Internet Sector

advanced 24.4 points to 309.54.

In postclose action,

priceline.com

(PCLN)

jumped to the top of the most-actives list on electronic trading platform

Island

ECN, on news that a lawsuit brought by the Internet retailer against

Microsoft

(MSFT) - Get Report

and its majority-owned travel Web site,

Expedia

(EXPE) - Get Report

, has been settled.

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Under the terms of the arrangement, Expedia will pay a royalty fee to priceline for its price matching service. Other details of the agreement are confidential, the companies said. As a result of the settlement, shares of priceline spiked 12.1% to $2.03 on Island.

Elsewhere in the Net corner,

Webvan

(WBVN)

, which warned today that fourth-quarter revenues will fall short of expectation, gained 0.3% to 47 cents on Island. And Internet incubator

CMGI

(CMGI)

lost 0.75% to $4.13 on Island.

Ahead of its earnings release tomorrow, Internet bellwether

Yahoo!

(YHOO)

trimmed its daytime gains on the night watch. Shares of Yahoo!, which advanced 10.8% in the regular session, lowered 2.3% to $29.44 on Island. And

At Home

(ATHM) - Get Report

gave back some its 21.1% daytime profit, falling 1.9% to $6.50 on Island.

In other postclose news, Web conferencing company

Evoke Communications

(SYMBOL)

announced that it expects fourth-quarter revenue to exceed analysts' expectations but plans to take cost-cutting measures that include eliminating about 112 of 320 jobs. Evoke said its restructuring plan will eliminate its back-end service engines to "significantly" reduce operational expenses. Its stock bounced on the news, gaining 32% to $2.31 on Island.

A big volume mover tonight,

Cisco Systems

(CSCO) - Get Report

shed 1.2% to $36.67 on Island and slid 1.5% to $36.56 on Instinet. The networking giant, which has moved off its 52-week low of $31.94 in recent days, ended the day up 1.6%.

Other large-cap technology stocks saw small price movements in extended action.

Intel

(INTC) - Get Report

fell 0.2% to $32.19 on Instinet,

Oracle

(ORCL) - Get Report

decreased 1.2% to $31.13 on Instinet and Island, and

Microsoft

(MSFT) - Get Report

declined 0.1% to $51.75 on Instinet.

As for NYSE-listed stocks, shares of

Xerox

(XRX) - Get Report

staggered 5.4% to $5.50. Earlier this evening, the beleaguered copier company asserted that it "has no plans to file for bankruptcy." The company did say, however, that it has hired

Blackstone Group

to help it with liquidity and cash flow management.

Wondering how the market will open tomorrow? At last look, the

S&P 500 futures on

Globex

were up 2.4 to 1311.9, about one point above

fair value and indicating a flat open on Wednesday. The

Nasdaq 100 Securities

were ahead 4.5 to 2330.5, about 5 points below fair value and suggesting a bit of weakness for the Nasdaq at tomorrow's open.

Attention "Night Watch" readers:

TheStreet.com

is looking for your best after-hours trading stories, from the pitfalls to the windfalls. So please email them to me at diane.hess@thestreet.com.

This information is provided by Instinet, a wholly owned subsidiary of Reuters (RTRSY) . For further information, please contact Instinet at www.instinet.com.

Island ECN, owned by Datek Online, offers trading, mainly in Nasdaq-listed stocks, from 7 a.m. to 8 p.m. EST.

Confused?

TheStreet.com

explains how the rules change when the sun goes down in Investing Basics: Night Owl, a section devoted to after-hours trading.