Techs Stage Late Recovery

However, market participants are wary the rebound won't last.
Publish date:

SAN FRANCISCO -- Sources said there was no specific trigger for today's late recovery in tech stocks, and one trader told TSC he didn't have much faith in the rebound.

Bellwethers like


(INTC) - Get Report



(MSFT) - Get Report

were able to post gains and helped encourage buying in the rest of the sector. Intel closed up 1 7/16, or 2.5%, at 58 7/16, while Microsoft closed up 3, or 3.5%, at 88 7/8.

David Levy, Internet analyst with

ING Baring Furman Selz

, said that with the run that Net stocks have had of late, "adjustments" like what was seen over the past two days "are natural." He said the recovery today was not related to any specific news, just a desire by investors to get in some stocks at cheaper prices.

"There's nothing we can identify that triggered it," said Levy. "The way we look at it is a pullback like this could present a buying opportunity to investors that missed the run."

One of the biggest turnarounds was seen in



, one of the favorite plays among Net stocks. After trading to a low of 221 13/16 early in the session, the stock was able to climb to a high of 284 before closing up 21 1/8, or 8%, at 276 1/4.

And shares of


(EBAY) - Get Report

closed strong after the company said it was entering into an agreement with

Butterfield and Butterfield

auction house. There was speculation regarding a deal on

Monday. eBay closed up 16, or 10%, at 178 7/8. The gains came on a day when the online auctioneer priced its offering of 6.5 million common shares -- 2.25 million of which are being offered by shareholders -- at 170, putting a $1.1 billion value on the deal.

Weakness in online brokerages was seen throughout the day, though losses were cut late in the day.


(AMTD) - Get Report

, which had stellar earnings on Wednesday, closed down 11 3/8, or 8%, at 136 5/8. But that was far from its 124 13/16 low.

National Discount Brokerage


closed down 9, or 14%, at 55 1/2 after reaching a low of 47. And



closed down 11 7/16, or 10%, at 101 7/16 after reaching a low of 86.