Low Volume Is the Only Catch to Tech Gains

After a bumpy week, the Internet sector finished nicely.
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SAN FRANCISCO -- A 50.9 point gain in the Nasdaq. A 21 point gain in TheStreet.com Internet Sector index. While today's action was encouraging, it came on relatively light volume ahead of a long weekend. Volume on the Nasdaq was around 674 million. That compares with volume of 834 million on Thursday and 1.1 billion on Wednesday.

But the beaten-up Internet sector showed some signs of life. After bouncing around early today, the market found some encouragement following a decline in the Chicago PMI. Net stocks staged a nice rally and midday gains helped squeeze out some shorts.

TheStreet.com Internet Sector

index ended the day up 20 points, or 3.6%, at 579.3, which was more than 50 points higher than its 522.74 low on Wednesday.

A number of big Internet names led the way higher and that encouraged buying in the rest of the sector.

Yahoo!

(YHOO)

closed up 14 5/8, or 11%, at 148.

eBay

(EBAY) - Get Report

finished up 8 3/16, or 5%, at 177 3/16, while

DoubleClick

(DCLK)

closed up 12 7/16, or 15%, at 97 7/16.

AudioCodes

(AUDC:Nasdaq), an Israeli designer of equipment for telecom packet networks, debuted today, and closed up 3 1/16, or 22%, at 17 1/16. But the star of Internet IPOs this week was

StarMedia Networks

(STRM:Nasdaq), a Latin American portal. It closed up 13 3/8, or 29%, at 58 7/8.

And a number of recent IPOs also closed strong as traders took advantage of recent weakness to get in some of the issues.

Silknet Software

(SILK) - Get Report

closed up 11, or 41.5%, at 37 1/2.

eToys

(ETYS)

closed up 10 7/16, or 21%, at 60 11/16.

Redback Networks

(RBAK)

, a supplier of high-speed Internet access, closed up 29, or 36%, at 109 1/2, while

Copper Mountain Networks

(CMTN)

, which also provides high-speed Internet access, closed up 8 1/2, or 15%, at 64.