Dow, S&P 500, Nasdaq Leap to Records

The move came on middling advance/decline numbers, but all of the major measures turned in gains.
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The

Nasdaq Composite Index

, the

S&P 500

and the blue-chip

Dow Jones Industrial Average

closed at record highs in a technology-stock-fueled rally.

The Nasdaq Comp surged 66.73, or 2.7%, to 2560.10, blowing past the old record close of 2510.09.

Meanwhile, the Dow jumped 174.82, or 1.8%, to 10,007.33, edging past its record of 10,006.78. The

S&P 500

added 27.40, or 2.1%, to 1321.12, to break its old record of 1316.55.

The

Russell 2000

, however, lagged behind the rest of the market's major gauges. It gained 3.55, or 0.9%, to 402.29.

TheStreet.com Internet Sector

index rose 25.74, or 3.9%, to a record 683.17.

TheStreet.com E-Commerce Index

flew 7.12, or 6.1%, to a record 123.24.

Meanwhile, the 30-year bond rose 1/32 to 95 1/32, yielding 5.59%.

Stocks rallied in their first day of trading since the release of the March

employment report

on Friday, when the Labor Department reported nonfarm payrolls rose 46,000 in March, a signal the economy is cooling, which soothed inflation jitters. The news sent the bond market soaring

Friday and stocks rose today in part thanks to the report.

On the

New York Stock Exchange

advancers beat decliners 1,689 to 1,302 on 699.7 million shares. On the

Nasdaq Stock Market

, losers beat winners 2,163 to 1,910 on 977.8 million shares.

On the NYSE, 81 issues set new 52-week lows while 66 touched new highs. On the Nasdaq, 178 issues set new lows while new highs totaled 123.

On the Big Board,

America Online

(AOL)

was most active, with 26.7 million shares changing hands. It was up 16 1/4, or 10.8%, to 166 1/4. Chatter of an AOL linkup with

CBS

(CBS) - Get Report

helped in part juice up AOL's stock. The

San Jose Mercury News

, citing a source familiar with the talks, reported that the two companies have been holding talks over the past year. The source said CBS Chief Executive Mel Karmazin would probably not accept a buyout of his company with AOL stock and that a deal between the two companies would more likely "end up as a press-release partnership than an outright purchase."

Meanwhile, AOL said it bought

When Inc.

, known as

When.com

, a provider of free Internet calendaring and event services, for an undisclosed amount of AOL stock.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 32.3 million shares changing hands. It was up 2 13/16, or 6.8%, to 44 1/16.

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

.

2:59 p.m.: Dow Flirting With 10,000 as Final Hour Begins

A technology- and Internet-stock-led rally has aided in pushing the major market gauges higher, as the

Nasdaq Composite Index

is poised to close at a record high heading into the final hour of trading.

Meanwhile, the

Dow Jones Industrial Average

has traded above 10,000 at various times this afternoon.

The Nasdaq Comp was up 56 to 2549. Its old record close is 2510.09.

The Dow was up 164 to 9997. The

S&P 500

was up 23 to 1317. The

Russell 2000

was up 2 to 401.

TheStreet.com Internet Sector

index was up 22 to 679.

Yahoo!

(YHOO)

was flying, up 29 1/4, or 16.3%, to 209.

TheStreet.com E-Commerce Index

was up 6 to 122.

Market breadth, however, is less than stellar.

On the

New York Stock Exchange

, advancers were beating decliners 1,578 to 1,349 on 546 million shares. On the

Nasdaq Stock Market

, losers were beating winners 2,131 to 1,851 on 759 million shares.

"I'd hardly call that a convincing broad-based rally," said Jay Suskind, head of institutional equity trading at

Ryan Beck

, pointing to the number of advancers over decliners on the Big Board.

Big-cap growth stocks continue to lead the market higher, while small-caps and midcaps continue to languish.

"I think it's going to be more of the same," Suskind said of the big-cap stocks. He said he expects the few stocks that have led the market higher are going to continue leading the market, but "how much higher can they go?" he asked.

Meanwhile in the Treasury market, the 30-year bond was down 1/32 to 94 30/32, yielding 5.60%.

Stocks rallied in their first day of trading since the release of the March

employment report

. On Friday, the

Labor Department

reported nonfarm payrolls rose 46,000 in March, a sign the economy is slowing, which assuaged inflation fears. The news sent the bond market soaring

Friday and stocks are playing some catch-up today.

On the NYSE, 70 issues had set new 52-week lows while 58 had touched new highs. On the Nasdaq, 153 stocks had set new lows while 116 touched new highs.

On the Big Board,

America Online

(AOL)

was most active, with 21.1 million shares changing hands. It was up 10 1/16, or 6.7%, to 160 1/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 27.3 million shares changing hands. It was up 2 1/2, or 6.1%, to 43 3/4.

1:54 p.m.: Techs Rally and Dow Climbs Back Into Five-Digit Territory

A tech sector led rally boosted the

Nasdaq Composite Index

into record territory, as the blue-chip

Dow Jones Industrial Average

was recently trading above 10,000.

The Nasdaq Comp is on pace to beat its old record close of 2510.09. The index was up 54 to 2547.

The Dow was up 170 to 10,002. The

S&P 500

was up 23 to 1316. The

Russell 2000

was up 3 to 401.

TheStreet.com Internet Sector

index was up 21 to 678.

TheStreet.com E-Commerce Index

was up 5 to 122.

The 30-year Treasury bond was down 6/32 to 94 25/32, yielding 5.61%.

Bonds rallied on

Friday after the release of the March

employment report

. Today stocks rallied on the heels of the bond market's handsome advance Friday.

On the

New York Stock Exchange

, advancers were beating decliners 1,606 to 1,265 on 440 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,968 to 1,882 on 615 million shares.

On the NYSE, 57 issues had set new 52-week lows while 51 had touched new highs. On the Nasdaq, 130 issues had set new lows while new highs totaled 105.

On the Big Board,

America Online

(AOL)

was most active, with 16.6 million shares changing hands. It was up 10, or 6.7%, to 160.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 22.1 million shares changing hands. It was up 2 3/4, or 6.7%, to 43 15/16.

Sector Focus: Online Brokers

A bullish report on online brokerage usage has helped lift online brokerage stocks.

Credit Suisse First Boston

analyst Bill Burnham today issued a report stating first-quarter trading volumes surged and online trading firms are poised for strong quarterly results.

According to the firm's proprietary analysis of market volumes, he estimates online trading grew by 30% to 35% in terms of trades per day during the first quarter. He expects the entire industry to post higher-than-expected "top- and bottom-line results."

Ameritrade

(AMTD) - Get Report

was up 14 7/16, or 23%, to 77 3/8, while

E*Trade

(EGRP)

was up 7 5/16, or 12%, to 68 1/4. Burnham has a buy rating on both stocks.

Charles Schwab

(SCH)

, meanwhile, was up 5 9/16, or 5.9%, to 99 13/16.

12:51 p.m.: Midday Musings: Market Basks in Friday's Glow and Shines on the Upside

12:10 p.m.: Paced by Nasdaq, Major Indices Climb Swiftly

Stocks were sharply higher late this morning as the tech-heavy

Nasdaq Composite Index

paced the market, jumping 1.7%.

Most of the major market averages were up more than 1%. The 30-year Treasury bond was down 4/32 to 94 27/32, yielding 5.61%. The long bond rallied on Friday in the wake of the March

employment report

. Nonfarm payrolls grew only 46,000, lower than expected. The unemployment rate dropped to 4.2%. The modest expansion of payrolls gave a sign the economy is cooling off.

The Nasdaq Comp was up 42 to 2536.

Dow Jones Industrial Average

was up 127 to 9960. The

S&P 500

was up 17 to 1311. The

Russell 2000

was up 2 to 401.

TheStreet.com Internet Sector

index was up 10 to 667.

TheStreet.com E-Commerce Index

was up 4 to 120.

On the

New York Stock Exchange

, advancers were beating decliners 1,555 to 1,134 on 280 million shares. On the

Nasdaq Stock Market

, winners were beating losers 1,853 to 1,654 on 410.6 million shares.

On the NYSE, 41 issues had set new 52-week highs while 40 had touched new lows. On the Nasdaq, 97 issues had set new highs while new lows totaled 93.

On the Big Board,

America Online

(AOL)

was most active, with 9.9 million shares changing hands. It was up 4 to 154.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 16.1 million shares changing hands. It was up 2 1/4, or 5.5%, to 43 7/16.

Tech Focus

The

Nasdaq 100

was up 2.1%, while the

Morgan Stanley High-Tech 35

was up 2.7%. The

Philadelphia Stock Exchange Semiconductor Index

was up 2%.

In the news, AOL said it bought

When Inc.

, known as

When.com

, a provider of free Internet calendar and event-planning services, for an undisclosed amount of AOL stock.

The tech sector, meanwhile, also saw some earnings warnings today.

Aspen Technologies

(AZPN) - Get Report

, a supplier of software and services for the design and automation of manufacturing plants, expects to post a "significant" operating loss in the third quarter. The current

First Call

five-analyst estimate has earnings coming in at 18 cents a share in the quarter. It was down 2 3/4, or 21%, to 10 3/8.

Axent Technologies

(AXNT)

, an information security company, expects to post a loss for the first quarter of between 5 cents to 10 cents a share before nonrecurring charges associated with the acquisitions of

Internet Tools

and

PassGo

, compared to income from continuing operations of 12 cents a share before items in the year-ago period. The First Call 14-analyst consensus estimate currently calls for earnings of 18 cents. Axent tumbled 11 1/4, or 56.4%, to 8 11/16.

10:52 a.m.: Stocks Continue to Rally at Midmorning

The major market averages continued higher at midmorning as the market got its chance to respond to Friday's

employment report

after the long holiday weekend.

Bonds surged

Friday thanks to news that

nonfarm payrolls

grew only 46,000 in March, much lower than expected, soothing fears the economy may be overheating. The unemployment rate dropped to 4.2%.

The 30-year Treasury bond rose again today. It was up 2/32 to 95 1/32, yielding 5.60%.

The

Dow Jones Industrial Average

was up 79 to 9912. The

S&P 500

was down 11 to 1304. The

Nasdaq Composite Index

was up 29 to 2523. The Nasdaq Comp has risen as high as 2529.82 today and remains on pace for a new all-time closing high. The small-cap

Russell 2000

up 2 to 401.

TheStreet.com Internet Sector

index was up 8 to 665.

TheStreet.com E-Commerce Index

was down 3 to 120.

Stephen Shobin, chief technical analyst at

Lehman Brothers

, has been and continues to be cautious on the market.

He sees the market trading in a range for many months going forward. For the S&P 500, the top end of the trading range he sees is 1300 to 1320, with the bottom end of the range at 1135 to 1150.

Shobin cited several factors that would make him more constructive on the market. First, he said he'd need to see consecutive days of "really dynamic momentum," where advancers beat decliners by a 2-to-1 margin and up volume beats down volume by a 4-to-1 ratio. The second factor he cited was a sharp rally in the bond market, and third, having a convergence of the major indexes with their 200-day moving average lines.

He said two or three of those factors occurring would make him more constructive.

On the

New York Stock Exchange

, advancers were beating decliners 1,518 to 1,035 on 174 million shares. On the Nasdaq, winners were leading losers 1,755 to 1,463 on 272 million shares.

On the NYSE, 34 issues had set new 52-week highs while 26 had touched new lows. On the Nasdaq, 86 issues had set new highs while new lows totaled 64.

On the Big Board,

America Online

(AOL)

was most active, with 7.3 million shares changing hands. It was up 3 15/16 to 153 15/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 11.2 million shares changing hands. It was up 1 13/16 to 43.

9:51 a.m.: Stocks Hop at the Open

Stocks were higher in the early going in the wake of Friday's

employment report

as the 30-year Treasury bond rallied.

The

Labor Department

said nonfarm payrolls grew only 46,000 in March, much lower than economists predicted, while the unemployment rate dropped to 4.2% from 4.4% in February.

The 30-year bond was up 7/32 to 95 6/32, yielding 5.58%. The long bond also rallied in

Friday's abbreviated session. The stock market was closed Friday.

Leading the way on the upside was the

Nasdaq Composite Index

, which was up 31 to 2524. The

Dow Jones Industrial Average

was up 70 to 9903. The

S&P 500

was up 11 to 1305. The

Russell 2000

was up 3 to 402.

TheStreet.com Internet Sector

index was up 9 to 666.

TheStreet.com E-Commerce Index

was up 3 to 119.

Most Up at Open -- NYSE

Charles Schwab (SCH) , up 2 3/4 to 97

.

Most Up at Open -- Nasdaq

DoubleClick (DCLK) , up 11 7/16 to 101

.

Most Down at Open -- NYSE

Sony (SNE) - Get Report, down 1 7/8 to 94

.

Most Down at Open -- Nasdaq

Aspect Development (ASDV) , down 13 1/32 to 8 7/8

: The company issued an earnings warning.