Chevron, J.P. Morgan Bolster Dow Into Record Territory

Meanwhile, the Internet and tech sectors are down.
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J.P. Morgan

(JPM) - Get Report

and

Chevron

(CHV)

, the blue-chip

Dow Jones Industrial Average

was in record territory, while technology and Internet stocks tumbled.

J.P. Morgan was up 3 1/16 to 137 1/2, while Chevron was up 3 1/4 to 98 11/16.

The Dow was up 87 to 10,805, above its closing record high of 10,727.18, which it reached Thursday.

The

Nasdaq Composite Index

was down 40 to 2612.

TheStreet.com Internet Sector

index was down 20 to 694

The

S&P 500

was up 1 to 1361. The

Russell 2000

was down fractionally at 435.

The 30-year Treasury bond was up 12/32 to 95 21/32, yielding 5.55%.

On the

New York Stock Exchange

, advancers were beating decliners 1,642 to 1,244 on 598 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,957 to 1,902 on 772 million shares.

On the NYSE, 75 issues had set new 52-week highs while 30 had touched new lows. On the Nasdaq, 60 issues had set new highs while new lows totaled 32.

On the Big Board,

America Online

(AOL)

was most active, with 26 million shares changing hands. It was down 4 1/8 to 157 11/16, ahead of its earnings report to be released after the close today.

On the Nasdaq,

Bid.com International

(BIDS)

was most active, with 26 million shares changing hands. It was up 2 3/4, or 17%, to 19 1/4.

Sector Focus: Banks

After falling significantly for two sessions in a row, bank stocks gained today. The

Philadelphia Stock Exchange/KBW Bank Index

was up 2%.

Among the components,

Chase

(CMB)

was up 2 5/16 to 85 15/16;

Citigroup

(C) - Get Report

was up 1 1/2 to 75 5/16; and

BankAmerica

(BAC) - Get Report

rose 1 7/8 to 73 7/8.

1:09 p.m.: Midday Musings: Cyclicals Head Higher as Profits Are Seized in Tech

12:02 p.m.: Techs Continue to Falter as Blue-Chips Remain Buoyant

As the morning unfolds, it seems a mini-rotation out of tech and back to basic materials is under way on Wall Street. Blue-chip proxies remain solidly higher and in record territory, but tech gauges have faltered from their recently torrid pace.

The

Dow Jones Industrial Average

was up 88 to 10,806 and apparently well on its way eclipsing its previous high of 10727.18.

Inredibly,

IBM

(IBM) - Get Report

was again among the Dow's best performers. Big Blue announced plans to repurchase up to $3.5 billion in stock and raised its quarterly dividend to 24 cents from 22 cents.

Other Dow gainers include

J.P. Morgan

(JPM) - Get Report

, which is leading a rebound in big-cap banking stocks after yesterday's losses. The

Philadelphia Stock Exchange/KBW Bank Index

was up 2%.

Also helping the venerable blue-chip average are cyclical plays such as

Caterpillar

(CAT) - Get Report

,

Chevron

(CHV)

, and

Alcoa

(AA) - Get Report

. The

Morgan Stanley Cyclical Index

was up 1%.

Disney

(DIS) - Get Report

paced Dow laggards, down 6% after posting second-quarter earnings of 13 cents a share, in line with the 19-analyst estimate but below the year-ago 18 cents.

Like the Dow, the

S&P 500

was on track to set a new standard, up 2 to 1362. The

Russell 2000

remains far from its all-time high, but is lately up fractionally at 435.

Tech stocks, meanwhile, are pausing after an incredible five-session run following last Monday's big selloff. The

Nasdaq Composite Index

, which rose as high as 2677.76 in the early going, was lately down 35 to 2617. Similarly,

TheStreet.com Internet Sector

index, which climbed as high as 731.49, was lately down 18 to 697.

Among earnings-driven tech plays,

eBay

(EBAY) - Get Report

was up 4% to 218 after

last night posting first-quarter earnings of a nickel a share, 3 cents ahead of the 10-analyst consensus. However, eBay was down from its morning best of 234.

Morgan Stanley Dean Witter

upped its 1999 earning estimates on the online retailer.

America Online

(AOL)

, meanwhile, was up from its low of 151 but still down 4% at 156 1/16 ahead of its earnings report, due after the close today. The 34-analyst consensus estimate is 9 cents a share vs. 4 cents a year ago. (

TheStreet.com

previewed AOL's earnings in a

story this morning.)

Elswhere,

Doubleclick

(DCLK)

was down 12% after merely matching the seven-analyst expectation. The company reported a first-quarter loss of 13 cents vs. a loss of 21 cents a year ago.

Among traditional tech bellwethers, notable weakness is evident in big names such as

Microsoft

(MSFT) - Get Report

and

Cisco

(CSCO) - Get Report

-- the

Nasdaq 100

was down 2%.

"We have this constant rotation back and forth between cyclicals banks, drugs and tech for last few days," said Jim Volk, codirector of institutional trading at

D.A. Davidson

. "We've got a lot of red on the tech screen today but except pockets of disappointment like

Airborne Freight

(ABF)

, the markets in general are withstanding this rotation very well."

Airborne was down 15% after posting disappointing first-quarter results last night. This morning, Morgan Stanley cut its recommendation to outperform from strong buy.

Volk also observed that recently out-of-favor groups such as grocers are rising today.

Safeway

(SWY)

, for example, was up 3%. The trader said the gain was from a combination of new coverage at

NationsBanc Montgomery Securities

and the fact "people just got tired of selling them."

In

New York Stock Exchange

trading, advancers were leading declining stocks 1,635 to 1,096 on 407 million shares. In

Nasdaq Stock Market

activity, decliners were leading 1,768 to 1,742 on 532 million shares.

The price of the 30-year Treasury bond was lately up 15/32 to 95 23/32, its yield falling to 5.55%.

--

Aaron L. Task

10:59 a.m.: Stocks Fall From Session Highs as Initial Earnings Euphoria Dissipates

Following an earnings-fueled liftoff at the opening bell, stock proxies have since cooled their jets, most notably tech-focused averages. An overall positive tone remains in place, but the explosiveness of the initial move has mellowed noticeably, at least for now.

The

Dow Jones Industrial Average

was up 78 to 10,796, but down from its initial best of 10,820.25. Similarly, the

S&P 500

was higher by 4 to 1364 after rising as high as 1371.67 early on. Both averages are currently on pace to best previous record highs.

But the

Nasdaq Composite Index

, which rose as high as 2677.76 in the early going, was lately down 13 to 2639. Also,

TheStreet.com Internet Sector

index, which climbed as high as 731.49, was lately down 12 to 703.

Much of the impetus for the early morning rise came from better-than-expected earnings posted last night and this morning, plus the anticipation of more to come after the bell today and later in the week.

eBay

(EBAY) - Get Report

generated great excitement

last night when it posted first-quarter earnings of a nickel a share, 3 cents ahead of the 10-analyst consensus. But eBay, which rose as high as 234 this morning after closing at 209 yesterday, was lately up "just" 6% at 221.

America Online

(AOL)

was down 2% ahead of its highly anticipated earnings report, due after the close today. The 34-analyst consensus estimate for AOL is 9 cents a share vs. 4 cents a year ago. (

TheStreet.com

previewed AOL's earnings in a

story this morning.)

Elswhere in the group,

Doubleclick

(DCLK)

was down 10% after committing the unpardonable sin of merely matching the seven-analyst expectation. The company reported a first-quarter loss of 13 cents vs. a loss of 21 cents a year ago.

Traditional tech bellwethers were faring about the same as their Internet counterparts. Stalwarts such as

Microsoft

(MSFT) - Get Report

,

Dell

(DELL) - Get Report

and

Cisco

(CSCO) - Get Report

were weakening this morning; the

Nasdaq 100

was down 1%.

On the blue-chip front,

AT&T

(T) - Get Report

was up just 1% despite posting first-quarter operating earnings of 61 cents a share, including the impact of the March 9

TCI

acquisition. The 18-analyst estimate predicted earnings of 57 cents.

Meanwhile,

Disney

(DIS) - Get Report

was down 4% after posting second-quarter earnings of 13 cents a share, in line with the 19-analyst estimate but down from the year-ago 18 cents.

IBM

(IBM) - Get Report

was again among the Dow's best performers, up 1% after announcing plans to repurchase up to $3.5 billion in stock. Big Blue also raised its dividend by 9%.

Moreover, the Dow was being fueled by cyclical stocks such as

Caterpillar

(CAT) - Get Report

and

Chevron

(CHV)

. The

Morgan Stanley Cyclical Index

was up 1%. If those gains hold (or expand) and tech continues to falter today, look for market pundits to talk about another rotation into basic materials.

Among stocks on the move for non-earnings-related news,

Park Place Entertainment

(PPE)

was up 15% on word it is buying

Caesars World

and other gaming assets from

Starwood Hotels & Resorts Worldwide

(HOT)

for about $3 billion in cash. Starwood was recently down 3%.

The

Russell 2000

was up fractionally at 435 as market internals remain favorable.

In

New York Stock Exchange

trading, advancers were leading declining stocks 1,539 to 1,014 on 264 million shares. In

Nasdaq Stock Market

activity, gainers were leading 1,647 to 1,554 on 361 million shares.

The price of the 30-year Treasury bond was lately up 9 to 95 18/32, its yield falling to 5.56%.

--

Aaron L. Task

10:04 a.m.: AT&T, eBay Earnings Jumpstart Stocks

Better-than-expected earnings from

eBay

(EBAY) - Get Report

and

AT&T

(T) - Get Report

helped in part lift major market averages early on.

AT&T, a Dow component, was up 1 7/16 to 54 3/8.

The

Dow Jones Industrial Average

was up 79 to 10,798.

The

S&P 500

was up 9 to 1369. The

Nasdaq Composite Index

was up 20 to 2672. The

Russell 2000

was up 2 to 437.

TheStreet.com Internet Sector

index was up 8 to 722.

The 30-year Treasury bond was up 4/32 to 95 12/32, yielding 5.57%.

Most Up at Open -- NYSE

Vodafone (VOD) - Get Report, up 3 3/16 to 187 13/16

.

Most Up at Open -- Nasdaq

eBay (EBAY) - Get Report, up 24 7/8 to 233 7/8

: After the close, the company posted first-quarter earnings of 5 cents a share, 3 cents ahead of the 10-analyst

First Call

forecast and above the year-ago penny.

Most Down at Open -- NYSE

Campbell Soup (CPB) - Get Report, down 1 7/16 to 41 1/2

:

Donaldson Lufkin & Jenrette

downgraded Campbell Soup to market perform from buy.

Most Down at Open -- Nasdaq

DoubleClick (DCLK) , down 22 5/8 to 149

: The company reported an operating loss of 13 cents a share, in line with the First Call 10-analyst estimate but narrower than the year-ago loss of 21 cents.

--

Brian Louis