SAN FRANCISCO -- You can't stop rock 'n' roll, but apparently you can stop the stock market (or, at least, slow it down). With the bond market again looking like

Dee Snider

, a robust rally melted in the (reportedly) stifling heat on Wall Street.

Weak throughout the session, as fixed-income traders focused on an expected heavy supply of corporate issuance, the price of the 30-year Treasury bond fell 19/32 to 89 5/32, its yield rising to 6.04%. Equities ignored the bond market's ugliness for most of the session, suggesting the late-day downturn in equities was more a function of profit-taking after last week's record-setting gains.

The

Dow Jones Industrial Average

rose as high as 11,236.76 before closing off 4.12, or 0.04%, to 11,135.12. Similarly, the

S&P 500

slid 3.10, or 0.2%, to 1388.12 after trading as high as 1405.32 while the

Nasdaq Composite Index

, once as high as 2787.17, closed down 4.24, or 0.2%, to 2736.78.

While the aforementioned each failed to extend the recent string of records, the less-than-major

American Stock Exchange Composite Index

rose 2.47, or 0.3%, to an all-time best of 804.89.

But the better-known averages closed way off session highs owing to a late-day reversal in techs as well as daylong weakness in transports, drug makers and select cyclicals and a rout in precious-metals stocks.

The Dow got a big lift from

General Motors

(GM) - Get Report

, which rose 4.5% after a favorable article in

Barron's

and subsequent upgrade by

Warburg Dillon Read

.

Chevron

(CHV)

and

J.P. Morgan

(JPM) - Get Report

also aided the average as energy and financial stocks were among the best-performing sectors. The

American Stock Exchange Oil & Gas Index

rose 2.1% while the

Philadelphia Stock Exchange/KBW Bank Index

gained 0.2% while the

American Stock Exchange Broker/Dealer Index

gained 1.1%.

Caterpillar

(CAT) - Get Report

was the biggest drag on the blue-chip index as cyclical stocks in general (save energy) stumbled; the

Morgan Stanley Cyclical Index

slid 0.7%.

Among tech bellwethers, weakness in

Microsoft

(MSFT) - Get Report

,

MCI WorldCom

(MSFT) - Get Report

and

Sun Microsystems

(SUNW) - Get Report

most heavily restrained the Comp. The

Nasdaq 100

slid 0.7%.

Meanwhile,

Intel

(INTC) - Get Report

rose as high as 65 3/4 before closing up 0.6% to 63 7/8 as upgrades from

Merrill Lynch

and

Prudential Securities

overshadowed negative comments from

BancBoston Robertson Stephens

. The

Philadelphia Stock Exchange Semiconductor Index

, which also got a big lift from

Micron Technology

(MU) - Get Report

, rose 0.6%.

Meanwhile,

TheStreet.com Internet Sector

index gained 0.96, or 0.1%, to 665.28 after trading as high as 689.16.

America Online

(AOL)

was the standout among Net bellwethers, resisting the late-session downturn. AOL gained 4.9% after

The New York Times

waxed effusive about the company in an article on Sunday.

Separately,

drkoop.com

(KOOP)

soared 56.1% after announcing a four-year distribution deal with AOL.

Despite the DOT's struggles, market participants sought select Net names as they resumed the hunt for growth, or prospects thereof (be it real or imagined).

Books-A-Million

(BAMM)

rose 18.7% on rumors of a buyout by

Borders

(BGP)

and

Ameritrade

(AMTD) - Get Report

gained 13.8% after a 3-for-1 stock split took effect.

Among other online notables,

Edgar Online

(EDGR)

jumped 94.3%,

GoTo.com

(GOTO)

rose 19% and newly public Internet access provider

High Speed Access

(HSAC) - Get Report

jumped 11.3%; each enjoyed higher-than-expected volume.

In New York Stock Exchange trading, 723 million shares traded while declining stocks led advancers 1,588 to 1,439. In Nasdaq Stock Market activity, 1.14 billion shares were exchanged while gainers led 2,082 to 1,952. Net 52-week highs led news lows 152 to 36 in NYSE trading and by 244 to 24 in over-the-counter action.

Remain Calm, All Is Well

After the market's recent gains, today's action left market players a bit wary, but generally nonplussed.

"I hope today was not what we call a sucker's rally -- where you're up all day and the smart guys are selling into it," said Doug Myers, vice president of equity trading at

Wachovia Securities

in Atlanta. "Toward the end of the day everyone was pinching themselves, wondering if it would hold. Then we saw bids slip a little -- someone was yelling 'Fire!' in a crowded theater, I don't know who, and everyone pushed for the exits."

Myers said there was "nothing specific" he could identify to cause the reversal, noting institutional investors "didn't feel any sense of urgency to be fully invested. They're not necessarily chasing things." That stood in stark contrast to last week, when "guys had to be invested. They couldn't miss this last run," the trader said.

But Myers isn't overly concerned, noting commodities and gold stocks remain weak, suggesting inflation is not resurfacing. Gold stocks got shellacked today as the

Bank of England

began the first of a series of auctions of its gold reserves; the

Philadelphia Gold & Silver Index

tumbled 6.1% as BOE sold 25 tonnes of the metal at $261.20 the ounce, a discount to spot market levels. In New York, gold futures fell 2.6% to $257.80, the lowest level since May 1979.

For other reasons, Gary Kaltbaum, chief technical analyst at

J.W. Genesis Securities

in Boca Raton, Fla., was equally sanguine.

"Short-term

the market is overbought, but it's going higher," Kaltbaum said. "Too many stocks are acting well and doing it in the face of higher rates. One day higher rates will hurt, but it hasn't happened yet. New highs have expanded, new lows contracted. I don't think much damage can happen unless the bond market crashes."

The technician noted volume last Wednesday was "extremely heavy" after the

Fed

meeting adjourned. Such a session "usually sets the stage for a move higher," he said. "We're on another leg higher."

Among other U.S. indices, the

Russell 2000

added 0.04 to 456.55; the

Dow Jones Transportation Average

shed 38.04, or 1.1%, to 3477.95; and the

Dow Jones Utility Average

rose 1.05, or 0.3%, to 321.33.

Elsewhere in North American equities, the

Toronto Stock Exchange 300

slipped 19.41 to 7235.04 and the

Mexican Stock Exchange IPC Index

fell 36.81, or 0.6%, to 5918.72.

Tuesday's Company Report

By Heather Moore
Staff Reporter

(

Earnings estimates from First Call; new highs and lows on a closing basis unless otherwise specified. Earnings reported on a diluted basis unless otherwise specified.

)

Elf Aquitaine

(ELF) - Get Report

stormed up 15 11/16, or 21.1%, to an all-time high of 90 following

yesterday's news that Franco-Belgian oil giant

TotalFina

(TOT) - Get Report

made a $43 billion unsolicited bid for its smaller rival. TotalFina picked up 1 3/4 to 67 1/2.

Mergers, acquisitions and joint ventures

America Online grew 5 11/16 to 120 15/16 after agreeing to a four-year, $89 million alliance with drkoop.com, the Internet health-care network led by the former surgeon general. drkoop.com rocketed 13 1/4, or 56.1%, to an all-time high of 36 7/8 after

Wit Capital

and

Bear Stearns

started coverage with buys. Also, as mentioned above,

The New York Times'

Sunday Money & Business section reported AOL is aiming to double its current subscriber base of 17 million over the next five years or so, and to more than triple average daily usage to three hours a day.

Books-A-Million surged 2 3/16, or 18.7%, to 14 on market chatter Borders might make a $21-a-share offer for the company. Last week, Books-A-Million formed a strategic alliance with

Wal-Mart

(WMT) - Get Report

.

Britain's

Cable & Wireless

(CWP)

flourished 2 15/16, or 7.8%, to 40 11/16 following a

Sunday Times

of London story saying that

Deutsche Telekom

(DT) - Get Report

,

France Telecom

(FTE)

,

Bell Atlantic

(BEL)

and

SBC Communications

(SBC)

"are all believed to have made informal approaches in recent months to sound out C&W about a deal."

Cinergy

(CIN)

tacked on 1/16 to 32 9/16 after saying it's selling its 50% interest in

Midlands Electricity

, a U.K. utility, to

GPU

(GPU)

for $700 million in cash. GPU added 1/4 to 42 1/4.

Columbia Energy

(CG) - Get Report

lowered 5/16 to 63 7/8 after rejecting

NiSource's

(NI) - Get Report

$68-a-share takeover offer. NiSource slipped 5/16 to 26 1/4.

EFTC

(EFTC)

dropped 1 1/16, or 23.6%, to 3 15/32 after

Jabil Circuit

(JBL) - Get Report

agreed to buy the company's service and repair unit for $30 million. Separately, EFTC said it expects to lose 15 cents to 20 cents a share in its second quarter, primarily due to softness in its services business and revenue shortfalls in its manufacturing business. Jabil tacked on 15/16 to 47.

General Nutrition

(GNCI)

expanded 1 11/16, or 7.4%, to 24 9/16 after receiving a $1.8 billion cash bid from Dutch foods group

Numico

.

Earnings/revenue reports and previews

Alcoa

(AA) - Get Report

rose 1 to 63 3/4, following an earlier high of 65 15/16, ahead of its scheduled second-quarter earnings report tomorrow. The 16-analyst forecast calls for earnings of 63 cents a share vs. the year-ago 62 cents.

Yahoo!

(YHOO)

, expected by 21 analysts to post second-quarter earnings of 8 cents a share after tomorrow's closing bell, lowered 3 to 175 1/8 after an earlier high of 189 1/4. The company earned a penny in the year-ago quarter.

Biomet

(BMET)

sliced off 1 13/16 to 39 5/8 even after posting fourth-quarter earnings of 37 cents a share, beating the 22-analyst estimate by 2 cents and moving up from the year-ago 30 cents.

Dset

(DSET)

tumbled 3 3/16, or 23.3%, to 10 1/2 after saying it sees second-quarter earnings of 4 cents to 6 cents a share, which would fall below the four-analyst forecast for 11 cents and the year-ago 9 cents. The company cited its failure to close key orders for electronic-bonding gateways with potential competitive local exchange carriers.

Hillenbrand

(HB)

gave up 5/16 to 42 1/2 after recording second-quarter earnings of 61 cents a share, beating the five-analyst view by 2 cents but falling below the year-ago 66 cents.

International Speedway

(ISCA) - Get Report

picked up 3/8 to 49 1/8 after reporting second-quarter earnings of 16 cents a share, 2 cents higher than the nine-analyst view and a repeat of the year-earlier figure.

King Pharmaceuticals

(KING)

swelled 3 11/16, or 15%, to 28 3/8 after saying it expects second-quarter earnings to come in above the four-analyst prediction of 25 cents a share thanks to strong sales. The company made 23 cents in the year-ago quarter.

Analyst actions

Azurix

(AZX)

advanced 3/4 to an all-time high of 21 1/4 after

Donaldson Lufkin & Jenrette

started coverage with a buy. Merrill Lynch and

Deutsche Banc Alex. Brown

also started coverage with buys.

Enron

(ENE)

, which owns 35% of Azurix, surged 2 5/8 to an all-time high of 83 7/8.

Electric Lightwave

(ELIX)

sloughed off 1 7/8, or 13.5%, to 12 after

PaineWebber

downgraded it to neutral from buy.

Fatbrain.com

(FATB)

flew 2 11/16, or 17.6%, to 18 1/16 after BancBoston Robertson Stephens initiated coverage with a buy.

General Motors revved up 3 1/16 to 71 11/16 after Warburg Dillon Read raised the stock to strong buy with a price target of 91. The firm, saying it expects U.S. auto sales to remain strong in the coming months, also lifted its 2000 earnings estimate to $8.76 from $8.67 a share. Separately,

Lockheed Martin

(LMT) - Get Report

lowered 1/16 to 37 15/16 after receiving three contracts from GM to provide management information services.

Intel gained 3/8 to 63 7/8, following an earlier high of 65 3/4, after Merrill Lynch upgraded the stock to near-term buy from accumulate and Prudential Securities upped it to strong buy from accumulate. BancBoston Robertson Stephens, meanwhile, lowered its second-quarter, 1999 and 2000 earnings estimates for the chipmaker, citing less-than-expected unit volume.

TSC

columnist

James J. Cramer

this morning

explored the implications of the moves.

Mobius Management

(MOBI)

tanked 1 3/4, or 20.6%, to 6 3/4 after

Goldman Sachs

slashed the stock to market perform from outperform.

Noble Affiliates

(NBL) - Get Report

hopped up 1 1/4 to 28 11/16 after

Credit Suisse First Boston

lifted it to strong buy from buy.

Phone.com

(PHCM)

climbed 4 3/4, or 7%, to an all-time high of 72 1/2 after Credit Suisse First Boston initiated coverage with a strong buy.

Brazil's

Telemig Celular

(TMB)

swelled 2 3/8, or 9.5%, to 27 3/8 after Donaldson Lufkin & Jenrette raised the stock to top pick from buy.

Miscellany

Circuit City

(CC) - Get Report

excelled 4 1/4 to an all-time high of 103 1/4 following last week's announcement that it will give customers $400 rebates on new PCs if they sign up for three years of

CompuServe

Internet service. Within the sector,

Best Buy

(BBY) - Get Report

popped 4 1/4, or 5.8%, to an all-time high of 77 1/4 and

Prodigy Communications

(PRGY)

popped 2 3/16, or 9%, to 26 5/8 on excitement over similar rebate programs.