Net Sector Ends on a High Note After a Manic Session

The DOT index ended in the black after bonds bounced back from an NAPM-inspired dip, ending just slightly lower. Plus, Fatbrain.com posted some very fat gains.
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Faster than a high-speed access line, the Net sector turned around today after getting over the shock of the early release of some economic data.

TheStreet.com Internet Sector

index closed up 14.02, or 2.5%, at 565.82. It was a sharp turnaround from the session low of 539.93 made following the inadvertent release of the

National Association of Purchasing Managers'

report. The combination of an early release and strong numbers put pressure on

Treasuries, but once bonds stabilized and began to bounce back, the Net sector rebounded as well, and momentum trading took things higher in a hurry.

"I think it was bargain hunting more than anything," said Barry Hyman, senior market analyst with

Ehrenkratz King Nussbaum

. Hyman said there may also have been some end-of-the-month squaring and program trading that benefited

Nasdaq

stocks over

Dow

stocks as the two indices broke ways late in the day.

The move may have been technically related as well. The DOT traded below the 543 level, which was roughly a 38% correction from the 150-point move from the August lows to the August highs. Program traders may have been looking for that correction before stepping in to buy.

The turnaround was strong in the bellwethers and typified movement elsewhere in the sector.

Amazon.com

(AMZN) - Get Report

found support near its 40-day moving average when it traded as low as 112 3/16 mid-session, closing up 5 1/8, or 4%, at 124 3/8.

Yahoo!

(YHOO)

bounced back from a low of 139 1/4 to end up 3 11/16, or 3%, at 147 1/2.

America Online

(AOL)

underperformed, closing down 1 7/8, or 2%, at 91 3/8.

Also among stocks of note,

eBay

(EBAY) - Get Report

benefited from news of an alliance with AOL, closing up 6 1/8, or 5%, at 125 9/16. The companies launched a co-branded site today on AOL designed to provide AOL members access to eBay's site.

Other big winners included

Internet Capital Group

(ICGE)

, a holding company with ownership positions in 36 business-to-business e-commerce firms. It closed up 16 1/8, or 27%, at 75.

BancBoston Robertson Stephens

initiated coverage of the stock with a buy rating, while

Banc of America

began coverage with a market perform rating. Both did underwriting for ICG. According to

Yahoo! Finance

, ICG has a market cap of $9.24 billion, which would put it above the $8.0 billion for Net venture capitalist

CMGI

(CMGI)

.