The

Dow Jones Industrial Average

closed at a record high but didn't have enough juice to get to 10,000, while select sectors of the market posted sharp gains.

The Dow closed up 82.14, or 0.8%, to 9958.77, breaking the old record of 9897.44. The Dow reached its intraday high around 3:40 p.m. EST when it surged 93.80 to 9970.15.

The

S&P 500

also closed at a record high, up 12.58, or 1%, to 1307.18, breaking the old closing record of 1297.68.

The

Nasdaq Composite Index

added 49.92, or 2.1%, to 2431.45. The

Russell 2000

rose 2.46, or 0.6%, to 400.84.

TheStreet.com Internet Sector

rallied 36.83, or 6.5%, to 604.83, a record closing high.

TheStreet.com E-Commerce Index

surged 4.72, or 4.5%, to 110.19.

Gains in stocks were bolstered in part on news of several large mergers. The biggest was announced yesterday, when

Fleet

(FLT) - Get Report

said it would buy

BankBoston

(BKB)

for $16 billion in stock.

The 30-year Treasury bond was up 13/32 to 96 9/32, yielding 5.505%.

Transportation stocks soared. The

Dow Jones Transportation Average

rallied 4.2%, powered by

UAL

(UAL) - Get Report

, which was up 6 7/16, or 9.6%, to 73 1/2. UAL, parent of

United Airlines

, said this morning it expects first-quarter earnings and full-year earnings to surpass Wall Street estimates. Airlines in general gained on news of fare hikes.

Meanwhile, the

American Stock Exchange Broker/Dealer Index

jumped 3.1%, while the

Philadelphia Stock Exchange Forest & Paper Products Index

leapt 2.6%.

Oil service stocks gave up some of their recent sharp gains. The

Philadelphia Stock Exchange Oil Service Index

fell 1.7%.

On the

New York Stock Exchange

advancers beat decliners 1,524 to 1,441 on 730 million shares. On the Nasdaq, losers beat winners 2,066 to 1,858 on 848 million shares.

On the NYSE, 69 issues set new 52-week lows while 58 touched new highs. On the Nasdaq, 85 issues set new lows while new highs totaled 80.

On the Big Board,

Rite Aid

(RAD) - Get Report

was most active, with 20.5 million shares changing hands. It was up 2 1/8, or 9.4%, to 24 11/16, after getting pummeled on Friday.

On the Nasdaq,

Oracle

(ORCL) - Get Report

was most active, with 29.7 million shares changing hands. It was up 1 3/8 to 30, recovering some of the ground it gave up Friday.

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

2:54 p.m.: Technology Sector Continues to Surge

The

Dow Jones Industrial Average

was solidly in record territory but still a little way away from the 10,000 mark, as the technology sector recovered the ground it surrendered Friday and then some.

The Dow was up 72 to 9948. Its all-time closing high is 9897.44.

The

Nasdaq Composite Index

was up 36 to 2418, at its session highs. It fell 1.3% Friday in the wake of

Oracle's

(ORCL) - Get Report

earnings report -- announced after the close Thursday -- which contained disappointing revenue numbers.

Today, Oracle was up 1 5/16 to 29 15/16 and was most active on the

Nasdaq Stock Market

with 26 million shares changing hands.

After the Oracle scare on Friday, investors have concluded it's somewhat safe to come back in to the water, said Peter Coolidge, managing director of trading at

Brean Murray Foster Securities

.

He also said the mergers announced yesterday and today probably helped the market.

Topping those deals, yesterday

Fleet

(FLT) - Get Report

agreed to buy

BankBoston

(BKB)

for $16 billion in stock.

Meanwhile, the

S&P 500

was up 10 to 1305. The small-cap

Russell 2000

was up 1 to 400.

Internet stocks were sharply higher.

TheStreet.com Internet Sector

index was up 31 to 599.

TheStreet.com E-Commerce Index

was up 5 to 110.

The 30-year bond was up 12/32 to 96 8/32, yielding 5.51%.

Among the sectors posting sharp gains today: brokerage issues and forest and paper product stocks. The

American Stock Exchange Broker/Dealer Index

has surged 3%, while the

Philadelphia Stock Exchange Forest & Paper Products Index

was also up 3%.

On the

New York Stock Exchange

, decliners were beating advancers 1,454 to 1,451 on 556 million shares. On the Nasdaq, losers were beating winners 2,011 to 1,777 on 645 million shares.

On the NYSE, 63 issues had set new 52-week lows while 54 had touched new highs. On the Nasdaq, 69 stocks had set new highs while 72 had set new lows.

On the Big Board,

Rite Aid

(RAD) - Get Report

was most active, with 18 million shares changing hands. It was up 2 7/17 to 25.

1:55 p.m.: Nasdaq Leads Major Indices Higher

The tech-laden

Nasdaq Composite Index

was leading the market's major indices on the upside while the

Dow Jones Industrial Average

was within about 65 points of the 10,000 level.

The Nasdaq Comp was up 34 to 2416, while the Dow was up 59 to 9935.

The

S&P 500

was up 8 to 1303. The

Russell 2000

was up 1 to 400.

TheStreet.com Internet Sector

was up 28 to 596.

TheStreet.com E-Commerce Index

was up 4 to 109.

Transportation stocks were flying. The

Dow Jones Transportation Average

was up 2%, powered by

UAL

(UAL) - Get Report

, which was up 5 3/16, or 8%, to 72 1/4.

UAL, parent of

United Airlines

, said this morning it expects first-quarter earnings and full-year earnings to surpass Wall Street estimates.

UAL expects first-quarter earnings to be about $1.35 a share, far above the

First Call

10-analyst estimate of $1.12. For the full year of 1999, UAL expects to earn between $10 to $12 a share, well above the current 11-analyst consensus of $9.12 a share.

The 30-year Treasury bond was up 1/32 to 95 29/32, yielding 5.53%.

On the

New York Stock Exchange

, decliners were beating advancers 1,428 to 1,414 on 464 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,917 to 1,754 on 552 million shares.

On the NYSE, 55 issues had set new 52-week lows while 51 had touched new highs. On the Nasdaq, 68 issues had set new highs while new lows totaled 63.

On the Big Board,

Rite Aid

(RAD) - Get Report

was most active, with 16 million shares changing hands. It was up 1 13/16 to 24 3/8.

On the Nasdaq,

Oracle

(ORCL) - Get Report

was most active with 24 million shares changing hands. It was up 1 7/16 to 30 1/16.

Focus: A Message From Omaha

In 1998, superinvestor Warren E. Buffett's

Berkshire Hathaway

(BRKA)

"slightly increased" its holdings in

American Express

(AXP) - Get Report

. Meanwhile, it left its positions in

Coca-Cola

(KO) - Get Report

and

Gillette

(G) - Get Report

unchanged.

The trio of stocks aren't making any dramatic moves today. American Express was up 1 7/16 to 127 11/16, hitting a 52-week intraday high when it peaked at 128 3/8; Coca-Cola was down 1/2 to 68 15/16; and Gillette was down 1 1/4 to 60 3/4.

In his yearly letter to Berkshire Hathaway shareholders, Buffett wrote: "Here, I need to make a confession (ugh): The portfolio actions I took in 1998 actually

decreased

our gain for the year. In particular, my decision to sell

McDonald's

(MCD) - Get Report

was a very big mistake. Overall, you would have been better off last year if I had regularly snuck off to the movies during market hours."

1:10 p.m.: Midday Musings: Dow 10,000 or Not, Market Trades Firmly Higher

12:01 p.m.: Dow Continues March Toward 10,000

After starting the session out mostly unchanged, the

Dow Jones Industrial Average

popped modestly, while technology issues surged, led by Internet stocks.

The Dow was up 79 to 9955, inching ever closer to the 10,000 mark.

The

Nasdaq Composite Index

surged 34 to 2415.

TheStreet.com Internet Sector

index was up 24 to 592.

TheStreet.com E-Commerce Index

was up 4 to 109.

Elsewhere, the

S&P 500

was up 10 to 1305. The small-cap

Russell 2000

was up 2 to 401.

The 30-year Treasury bond was up 2/32 to 95 30/32, yielding 5.53%. (For more, please see the Bond Focus report from late

this morning).

Brokerage stocks gained strongly. The

American Stock Exchange Broker/Dealer Index

was up 3%.

Donaldson Lufkin & Jenrette

(DLJ)

, a component of the index, was up 3 3/16, or 5%, to 67 3/16, after its

DLJ Direct

online brokerage unit was rated the No. 1 online broker in

Barron's

.

E*Trade

(EGRP)

, also a component, was up 3 1/4, or 6%, to 54. It came in No. 6 in the survey.

On the

New York Stock Exchange

, advancers were beating decliners 1,443 to 1,243 on 310 million shares. On the

Nasdaq Stock Market

, winners were beating losers 1,752 to 1,644 on 379 million shares.

On the NYSE, 41 issues had set new 52-week lows while 43 had touched new highs. On the Nasdaq, 54 issues had set new highs while new lows totaled 43.

On the Big Board,

Rite Aid

(RAD) - Get Report

was most active, with 12 million shares changing hands. It was up 1 9/16 to 24 1/8.

On the Nasdaq,

Oracle

(ORCL) - Get Report

was most active with 19 million shares changing hands. It was up 1 3/8 to 30.

Tech Focus

The major tech gauges were higher. The

Nasdaq 100

was up 2%, while the

Morgan Stanley High-Tech 35

was also up 2%. The

Philadelphia Stock Exchange Computer Box Maker Index

was up 2%. The

Philadelphia Stock Exchange Semiconductor Index

was up fractionally.

In remarks following a presentation at

PaineWebber's

(PWJ)

Internet conference in New York,

CMGI

(CMGI)

Managing Director Peter Mills said third parties have expressed interest in

Lycos

(LCOS)

,

Reuters

reported. CMGI is Lycos' largest shareholder.

Lycos was up 5 9/16, or 6%, to 104 5/8, while CMGI was up 18 1/8, or 11%, to 182 1/16.

In other news,

Ciena

(CIEN) - Get Report

is buying closely held

Lightera Networks

and

Omnia Communications

in separate transactions for a total of $980 million. Ciena was down 1 5/8, or 6%, to 25 1/8.

Dragon Systems

today said

Dell

(DELL) - Get Report

will offer its

Dragon NaturallySpeaking Preferred

speech recognition software through several Dell business units and Dell's new online superstore. Dell was up 1 9/16 to 43 3/4.

11:05 a.m.: Stocks Climb Into Positive Territory

Stocks were slightly higher overall, while the

Dow Jones Transportation Average

was soaring, led by

UAL

(UAL) - Get Report

.

UAL, parent of

United Airlines

, said this morning it expects first-quarter earnings and full-year earnings to surpass Wall Street estimates. The news sent its stock soaring, up 4 9/16, or 7%, to 71 5/8.

UAL expects first-quarter earnings to come in around $1.35 a share, far above the

First Call

10-analyst estimate of $1.12. For the full year of 1999, UAL expects to earn between $10 to $12 a share, well above the current 11-analyst consensus of $9.12 a share.

The Dow transportation average was up 2%.

Elsewhere, the

Dow Jones Industrial Average

was up 35 to 9912. The

S&P 500

up 7 to 1302. The

Nasdaq Composite Index

was up 30 to 2412. The small-cap

Russell 2000

up 2 to 400.

TheStreet.com Internet Sector

index was up 23 to 591.

TheStreet.com E-Commerce Index

was up 3 to 109.

John Roque, senior analyst at

Arnhold & S. Bleichroeder

, said that over the short term he expects the market to consolidate here, adding that the 9700 level on the Dow is the lower level of consolidation.

In a note this morning, Roque pointed out that several floors of support for the market indicate downside is limited. Among some of the floors that are being created: continued improvement in Japan, the extremely positive response in German equities on the news of the resignation of

Oskar Lafontaine

, the German finance minister, and better action in T-bonds and in the

Philadelphia Stock Exchange Utility Average

.

Roque said the best areas in the market here are drug stocks, gaming, and the food retailers.

Meanwhile, Roque is shunning technology right now. Roque wrote: "It's much too soon to talk about the group being at a bottom given the way

Oracle

(ORCL) - Get Report

responded to the bad news. When the sector starts absorbing bad news then we can talk about the group being at a bottom."

Oracle tumbled sharply in trading on Friday on disappointment with revenue growth.

The 30-year Treasury bond was down 1/32 to 95 29/32, yielding 5.54%.

On the

New York Stock Exchange

, advancers were beating decliners 1,342 to 1,169 on 211 million shares. On the

Nasdaq Stock Market

, winners were beating losers 1,625 to 1,513 on 262 million shares.

On the NYSE, 36 issues had set new 52-week highs while 35 had touched new lows. On the Nasdaq, 47 issues had set new highs while new lows totaled 39.

On the Big Board,

Rite Aid

(RAD) - Get Report

was most active, with 9 million shares changing hands. It was up 1 13/16 to 24 3/8.

On the Nasdaq, Oracle was most active with 14 million shares changing hands. It was up 1 5/16 to 29 15/16.

9:55 a.m.: Stocks Open Little Changed Amid Merger News

Stocks opened little changed amid merger news, including a $16 billion banking deal.

The

Dow Jones Industrial Average

was down 4 to 9872. The

S&P 500

was down 1 to 1294.

The

Nasdaq Composite Index

was up 4 to 2386. The

Russell 2000

was up 1 to 399.

TheStreet.com Internet Sector

was up 8 to 576.

TheStreet.com E-Commerce Index

was up 1 to 106.

The 30-year Treasury bond was up 2/32 to 95 31/32, yielding 5.53x%.

On the merger-and-acquisition front,

Fleet

(FLT) - Get Report

agreed to buy

BankBoston

(BKB)

for $16 billion in stock.

Meanwhile,

DuPont

(DD) - Get Report

, which owns 20% of

Pioneer Hi-Bred

(PHB) - Get Report

, is buying the rest of the company for $40 a share in cash and stock. Pioneer closed Friday at 34 5/16. The deal is valued at $7.7 billion.

Most Up at Open -- NYSE

EMC (EMC) , up 2 1/2 to 114 3/4

.

Most Up at Open -- Nasdaq

CMGI (CMGI) , up 13 to 177

: CMGI will become a component of the

Nasdaq 100

effective at the close of trading Wednesday. CMGI will replace

Netscape Communications

(NSCP)

, which is being acquired by

America Online

(AOL)

.

Most Down at Open -- NYSE

Limited (LTD) , down 1 5/16 to 36 1/4

.

Most Down at Open -- Nasdaq

Chancellor Media (AMFM) , down 2 3/8 to 42

: The company said it was scuttling its proposed acquisition of

LIN Television

and announced big management changes and announced plans for a new Internet division.