Yahoo! News Spurs Sector Momentum

The DOT closes 2% higher, raising speculation of a coming rise in the rest of the market. Also, the Calico Commerce IPO finishes up 300%, and portal news from CMGI raises its shares 7.5%.
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Yahoo! (YHOO) Yahoo! Yahoo! Yahoo! There, we got that out of our system.

Another outstanding earnings

report from Yahoo! provided cheer throughout the Internet sector.

TheStreet.com Internet Sector

index closed up 14.48, or 2.0%, at 723.22. Yahoo! was a major part of the picture, closing up 14 1/2, or 8%, at 190 1/4. Only weakness in the broader market and some trepidation ahead of Friday's employment report held back the sector.

Joe Barthel, chief investment strategist with

Fahnestock & Company

, said despite the sharp gains over the past few sessions, most Net stocks were not overbought. And if Net stocks do continue to do well, it could provide a "psychological underpinning" to the rest of the market, though the sector in and of itself could not carry the rest of the market. Barthel also said one caveat is that the market could come under pressure from mutual funds that may need to sell stocks that are carrying losses to offset capital gains. Those sales must take place this month, he said.

It also was another solid day for a couple of IPOs.

Calico Commerce

(CLIC)

, which sells software to facilitate sales on the Internet, closed up 42, or a cool 300%, at 56. And

PlanetRx.com

(PLRX)

, an online drugstore, ended up 10, or 63%, at 26.

Also,

CMGI

(CMGI)

closed up 7 15/16, or 7.5%, at 113 5/8. The company told

CBS Marketwatch

that its

MyWay.com

Internet portal would debut next week. In addition, CMGI's

AltaVista

portal said it had registered 550,000 users for its free dial-up Internet service in seven weeks.