A late-session selloff sent the

Dow Jones Industrial Average

into the red with roughly 15 minutes left in the trading day. However, the blue-chip average managed to claw into positive territory and closed at another record high.

The Dow rose 13.74, or 0.1%, to 10,845.45, but a far cry from its session highs. The Dow, as late as 3:15 p.m. EDT, was trading in the neighborhood of its best levels of the day, but a wave of selling broadsided the blue-chip gauge and sent it briefly into negative territory before it recovered. The Dow's intraday high was 10,935.37.

Alcoa

(AA) - Get Report

was the biggest boost to the Dow. It was up 6 5/8, or 12%, to 62. Cyclicals were the biggest boosts to the Dow and were the shining stars in the market overall.

Declines notably in

IBM

(IBM) - Get Report

and

American Express

(AXP) - Get Report

handcuffed the Dow. The decline in IBM and American Express mirrored an overall decline in technology and financials. Also significant on the downside were the Internet stocks.

The

Nasdaq Composite Index

tumbled 52.15, or 2%, to 2550.26.

TheStreet.com Internet Sector

surrendered 39.07, or 5.6%, to 657.90.

The

S&P 500

fell 11.89, or 0.9%, to 1350.91. The

Russell 2000

slipped 1.63, or 0.4%, to 433.53.

The 30-year Treasury bond was down 22/32 to 95 4/32, yielding 5.587%.

The

Morgan Stanley Commodity Related Equity Index

surged 4.1%. The

Morgan Stanley Cyclical Index

gained 2.7%.

The

Chicago Board Options Exchange Oil Index

added 3.6%, while the

Philadelphia Stock Exchange Oil Service Index

leapt 7.5%.

On the

New York Stock Exchange

, advancers beat decliners 1,730 to 1,279 on 948 million shares. On the

Nasdaq Stock Market

, losers beat winners 2,143 to 1,938 on 1 billion shares.

On the NYSE, 78 issues set new 52-week highs while 26 touched new lows. On the Nasdaq, 79 issues set new highs while new lows totaled 50.

On the Big Board,

McKesson HBOC

(MCK) - Get Report

was most active, with 41.5 million shares changing hands. McKesson was down 31 1/8, or 47.3%, to 34 5/8, in the wake of the company's restatement of results for the fourth quarter and full year.

On the Nasdaq,

Microsoft

(MSFT) - Get Report

was most active, with 27.8 million shares changing hands. It was down 1 15/16 at 82 1/8.

Market data above are preliminary. Updated numbers and analysis will follow in the Market Roundup

3:07 p.m.: Dow, Climbing Further, Heads Toward Another Record Close

The

Dow Jones Industrial Average

was trading above 10,900 and near its session peak, with

Alcoa

(AA) - Get Report

leading the way.

The Dow was up 87 to 10,919. The Dow has surged as high as 10,933.08.

Chevron

(CHV)

,

DuPont

(DD) - Get Report

,

3M

(MMM) - Get Report

and

Exxon

(XON) - Get Report

were notable drivers of the Dow.

The

S&P 500

was down 1 to 1362. The

Russell 2000

was up 1 to 436.

While basic materials and energy stocks overall rallied, technology and Internet issues slumped. Also notable on the downside were drug stocks and financials.

The

Nasdaq Composite Index

was down 20 to 2583.

TheStreet.com Internet Sector

index was down 24 to 673.

With the market's leadership changing from day to day, "it's getting on everyone's nerves," said Frank Gretz, market analyst at

Shields

.

First, tech stocks suffered a significant decline, while cyclicals rallied and took over leadership. Then cyclicals took a breather while the tech sector rallied. Now over the last couple of days, tech stocks have stumbled and cyclicals have advanced sharply. All of this has happened in the period of a little over two weeks.

Over the next few weeks, both technology and cyclical stocks could see some backing and filling because both of those sectors are still settling in, said Gretz.

The 30-year Treasury bond was down 19/32 to 95 8/32, yielding 5.58%.

On the

New York Stock Exchange

, advancers were beating decliners 1,768 to 1,161 on 738 million shares. On the

Nasdaq Composite Index

, losers were beating winners 2,016 to 1,916 on 776 million shares.

On the NYSE, 73 issues had set new highs 52-week while 22 had touched new lows. On the Nasdaq, 76 stocks had set new highs while 45 touched new lows.

On the Big Board,

McKesson HBOC

(MCK) - Get Report

was most active, with 35 million shares changing hands. McKesson was down 31 1/2, or 48%, to 34 1/4, in the wake of news the company restated results for the fourth quarter and year to reverse more than $40 million in improperly recorded software sales because they were subject to contingencies. The company also revised its full-year earnings goal for fiscal year 2000 to $2.50, down from its previous goal of $3.

On the Nasdaq,

Microsoft

(MSFT) - Get Report

was most active, with 20 million shares changing hands. It was down 1 1/6 at 83.

2:01 p.m.: Cyclicals, Oil Stocks Buoy Dow

Driven by cyclicals and oil stocks, the

Dow Jones Industrial Average

was in record territory this afternoon, while Internet and technology stocks stumbled.

The Dow was up 38 to 10,869.

Chevron

(CHV)

was the biggest boost to the average, trailed closely behind by

Alcoa

(AA) - Get Report

. Chevron was up 4 3/8 to 103 5/16, while Alcoa was up 4 1/8 to 59 1/2.

The

Nasdaq Composite Index

was down 21 to 2581.

TheStreet.com Internet Sector

index was down 25 to 672.

The

S&P 500

was down 3 to 1360. The

Russell 2000

was down fractionally at 435.

The 30-year Treasury bond was down 26/32 to 95 1/32, yielding 5.60%.

On the

New York Stock Exchange

, advancers were beating decliners 1,696 to 1,184 on 601 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,979 to 1,835 on 645 million shares.

On the NYSE, 61 issues had set new 52-week highs while 21 had touched new lows. On the Nasdaq, 70 issues had set new highs while new lows totaled 42.

McKesson HBOC

(MCK) - Get Report

was getting crushed after the company restated results for the fourth quarter and year to reverse more than $40 million in improperly recorded software sales because they were subject to contingencies. McKesson was down 32 1/8, or 49%, to 33 5/8 and was most active on the

New York Stock Exchange

with 30 million shares changing hands. The company also revised its full-year earnings goal for fiscal year 2000 to $2.50, down from its previous goal of $3.

On the Nasdaq,

Microsoft

(MSFT) - Get Report

was most active, with 17 million shares changing hands. It was down 7/8 at 83 1/8.

Sector Focus: Pharmaceuticals

Growth stock darlings the drug stocks, have fallen on hard times lately and today has been no different. This afternoon, the

American Stock Exchange Pharmaceutical Index

was down 2%.

The index peaked on April 12 when it closed at about 425, before falling down to a close of about 364 on April 19, a drop of about 14%. Today it was at 384, a drop of roughly 10%.

Drug titans

Merck

(MRK) - Get Report

,

Pfizer

(PFE) - Get Report

and

Bristol-Myers Squibb

(BMY) - Get Report

were all lower. Merck was down 2 5/16 to 71 1/4; Pfizer was off 2 1/2 to 118 5/8; and Bristol-Myers was down 1 5/8 to 67 9/16.

1:15 p.m.: Midday Musings: Dow 11,000 Gets Closer as Rotation Spins On

12:04 p.m.: Dow Buoyed by Cyclicals

Energy and cyclical stocks rallied, while technology and financials were slightly softer, as the lunch hour beckoned on Wall Street.

June crude oil futures rose 2.8% to $18.30 a barrel, helping boost oil and oil service stocks. The

Philadelphia Stock Exchange Oil Service Index

was up 5%. The

Chicago Board Options Exchange Oil Index

was up 2%.

Cyclicals were juicing the

Dow Jones Industrial Average

higher. The Dow was up 33 to 10,865. The biggest boosts to the average were

Alcoa

(AA) - Get Report

and

Chevron

(CHV)

. Alcoa was up 3 3/8 to 58 3/4, while Chevron was up 3 to 101 15/16.

The

S&P 500

was down 2 to 1361. The

Nasdaq Composite Index

was down 19 to 2583. The

Russell 2000

was down 1 to 434.

TheStreet.com Internet Sector

index was down 22 to 675.

The 30-year Treasury bond was down 19/32 to 95 7/32, yielding 5.58%.

On the economic front, the March

durable goods orders

report contained positive news for the manufacturing sector. The

Commerce Department

reported that durable goods orders in March rose 2%.

McKesson HBOC

(MCK) - Get Report

was getting crushed after the company restated results for the fourth quarter and year to reverse more than $40 million in improperly recorded software sales because they were subject to contingencies.

McKesson was down 31 3/48, or 48%, to 34 and was most active on the

New York Stock Exchange

with 20 million shares changing hands. The company also revised its full-year earnings goal for fiscal year 2000 to $2.50, down from its previous goal of $3.

Several brokerages downgraded the stock today, including

Merrill Lynch

and

Morgan Stanley Dean Witter

.

On the NYSE, advancers were beating decliners 1,545 to 1,196 on 417 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,917 to 1,631 on 443 million shares.

On the NYSE, 47 issues had set new 52-week highs while 14 had touched new lows. On the Nasdaq, 52 issues had set new highs while new lows totaled 31.

Tech Focus

Tech sector barometers were weaker. The

Nasdaq 100

was down 1%, while the

Morgan Stanley High-Tech 35

was down 2%. The

Philadelphia Stock Exchange Semiconductor Index

was down 1%. The

Philadelphia Stock Exchange Computer Box Maker Index

was down 1%.

On the Nasdaq,

Microsoft

(MSFT) - Get Report

was most active, with 11 million shares changing hands. It was unchanged at 84 1/16.

Computer networking giant

Cisco

(CSCO) - Get Report

, agreed to buy privately held

Amteva Technologies

for $170 million. In connection with the buyout, Cisco expects to take a one-time charge against after-tax earnings of between 2 and 7 cents a share for purchased in-process research and development expenses in the fourth quarter. Cisco was down 1 15/16 to 113 1/8.

In other news,

Credit Suisse First Boston

upped its price target on

Nortel Networks

(NT)

to $82 from $75 and increased its earnings estimate for 1999 to $2.25 from $2.20. Nortel was down 2 7/16 to 69 13/16.

Meanwhile,

@Home

(ATHM) - Get Report

and

Excite

(XCIT)

today said the two companies received antitrust clearance for their proposed merger from the

Department of Justice

and the

Federal Trade Commission

.

@Home was down 4 11/16 to 150, while Excite has slumped 5 5/8 to 151 1/2.

11:02 a.m.: Cyclicals Boost Dow Into Record Territory

Cyclical stocks

Alcoa

(AA) - Get Report

and

DuPont

(DD) - Get Report

powered the

Dow Jones Industrial Average

into record territory this morning, while Internet stocks slumped.

The Dow was up 31 to 10,863. Alcoa was up 3 9/16 to 58 15/16. DuPont was up 2 5/8 to 71 3/4.

DuPont, like other cyclicals, has soared lately as investors have bet that earnings will improve as economic conditions around the globe brighten, notably in Asia.

Mike Holland, chairman of

Holland & Co.

, speaking before the open, pointed to DuPont's earnings report yesterday as a sign that the Asian economic problems may have peaked. DuPont's sales to Asia in the first quarter were up 6%, he said. Holland owns DuPont stock.

Today, DuPont's board approved a split-off plan to establish

Conoco

(COC)

as a fully independent company.

The

S&P 500

was up 1 to 1363. The basic materials and energy industry groups were leading the big-cap gauge higher.

The

Nasdaq Composite Index

was up fractionally at 2603. The

Russell 2000

was down fractionally at 435.

TheStreet.com Internet Sector

index was down 12 to 685.

Meanwhile, the 30-year Treasury bond was down 20/32 to 95 7/32, yielding 5.58%.

On the

New York Stock Exchange

, advancers were beating decliners 1,439 to 1,134 on 286 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,693 to 1,579 on 305 million shares.

On the NYSE, 43 issues had set new 52-week highs while 11 had touched new lows. On the Nasdaq, 42 issues had set new highs while new lows totaled 15.

On the Big Board,

America Online

(AOL)

was most active, with 15 million shares changing hands. It was down 1/2 to 152 1/2. AOL posted better-than-expected earnings last night.

The second-most active stock on the Big Board was

McKesson HBOC

(MCK) - Get Report

, which was down 30 5/8, or 46%, to 35 1/8, on volume of 14 million shares. This morning the company restated results for the fourth quarter and year to reverse more than $40 million in improperly recorded software sales because they were subject to contingencies. The company also revised its full-year earnings goal for fiscal year 2000 to $2.50, down from its previous goal of $3.

Meanwhile on the Nasdaq,

Microsoft

(MSFT) - Get Report

was most active, with 8 million shares changing hands. It was up 1/2 to 84 9/16.

10:03 a.m.: Stocks Open Mixed as Internet Sector Takes a Tumble

The major market barometers were mixed early on, while Internet stocks were getting hammered.

The

Dow Jones Industrial Average

was up 28 to 10,860. The

S&P 500

was up 2 to 1364. The

Nasdaq Composite Index

was down 7 to 2595. The

Russell 2000

was down 1 to 434.

TheStreet.com Internet Sector

index was down 14 to 683.

Trading in

McKesson HBOC's

(MCK) - Get Report

stock has been delayed because of an imbalance and will be dramatically lower once it opens for trading after the company restated results for the fourth quarter and year to reverse more than $40 million in improperly recorded software sales because they were subject to contingencies. The company also revised its full-year earnings goal for fiscal year 2000 to $2.50, down from its previous goal of $3.

The 30-year Treasury bond was down 22/32 to 94 5/32, yielding 5.59%.

Most Up at Open -- NYSE

Mead (MEA) , up 1 15/16 to 40 1/2

.

Most Up at Open -- Nasdaq

Walbro (WALB) , up 7 1/16 to 19 3/8

:

TI Group

, a UK-based global automotive supplier and engineering company, announced a tender offer for Walbro, an Auburn Hills, Mich., manufacturer of vehicle fuel storage and delivery systems.

Most Down at Open -- NYSE

IBM (IBM) - Get Report, down 2 1/4 to 209 1/4

.

Most Down at Open -- Nasdaq

MindSpring (MSPG) , down 6 3/16 to 109 1/2

: The Internet services provider yesterday posted first-quarter earnings of 16 cents a share, beating the First Call eight-analyst estimate and up from the year-ago 8 cents.