Nasdaq, Dow make huge gains for second straight day

But analysts say the shakeout is far from over

US technology stocks made enormous gains again Tuesday as investors continued to dive in after last week's brutal sell-off. The Nasdaq composite stormed up 254 points, or 7 percent, to 3,793.50 while the Dow rose 190 points to end at 10,773.00.

"I'm pretty impressed and pretty amazed at how strong the rebound is today following yesterday," said James Oberweis, president and portfolio manager of Oberweis Asset Management. "But my instincts tell me that it's not going to be easy, that we're going to need more time for backing and filling."

Internet stocks were especially strong Tuesday as leaders such as Yahoo! and America Online added to Monday's gains.

Yahoo! closed up 12 5/16 to 126 15/16. AOL gained 1 3/4 to 60 1/2 and closed up 7 15/16 to 55. eBay shot up 19 11/16 to 162 15/16 and Lycos closed up 13/16 to 38 5/8.

B2B stocks caught fire as well as PurchasePro rose 3 5/16 to 36 5/16 while VerticalNet and Commerce One closed up 9 3/8 and 12 a share, respectively.

Tellabs moved up 6 to 49 5/16 after its first-quarter profit hit lowered estimates. The company warned earlier this month its earnings would be hurt by lower gross profit margins.

Cisco Systems closed up 2 3/4 to 69 1/4. Lucent Technologies picked up 5 to 59 1/8 and 3Com finished up 7/16 to 39 1/2.

Microsoft charged up 4 11/16 to 80 9/16 ahead of its earnings report. Sun Microsystems closed up 7 3/16 to 92 1/16 and Oracle gained 4 1/8 to 78 15/16.

EMC beat Wall Street estimates with first quarter earnings of $332m, or 30 cents a share, on sales of $1.82bn (about £1.12bn). Its shares closed up 5 3/8 to 129 7/8.

Cypress Semiconductor shares closed up 3 7/8 to 52 7/8 after it topped First Call estimates by a penny Tuesday with a first quarter operating profit of 41 cents per share. Vitesse Semiconductor lopped off 10 1/2 to 62 9/16 while Advanced Micro Devices (AMD) and Intel shot up 6 3/8 and 6 a share, respectively.

Among widely held PC stocks, Dell Computer rose 1 13/16 to 50 9/16; Compaq Computer tacked on 1 1/16 to 27 5/8; Apple Computer raced up 3 to 126 7/8 and Gateway closed up 2 9/16 to 55 1/16.

For full coverage of the markets' recent slide, see the Market Mayhem news roundup.

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