Late Rally Sends Dow, S&P and Nasdaq to Record Closes

The session was marked by choppy trading.
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A late afternoon surge sent the

Dow Jones Industrial Average

to a record close, ending a choppy session well above 9600, while the Internet sector enjoyed sharp gains, but finished well off their session highs.

The Dow rallied 105.82, or 1.1%, to 9643.58, led by

Alcoa

(AA) - Get Report

, which jumped 7 15/16, or 10.3%, to 85 3/16.

TheStreet.com Internet Sector

index rose 24.67, or 5.2%, to 499.77.

The

Nasdaq Composite Index

closed in record territory again. It jumped 18.80, or 0.8%, to 2344.89. The

S&P 500

also closed at a record high. It rose 5.42, or 0.4%, to 1275.15. The small-cap

Russell 2000

advanced 3.36, or 0.8%, to 431.19.

Stocks received good news on the economy today. The

Labor Department

reported

nonfarm payrolls

jumped 378,000 -- much higher than analysts' expectations -- pushing the jobless rate down to 4.3%.

The 30-year Treasury bond, however, was hurt by the strong employment report. It was lately down 15/32 to 99 28/32, yielding 5.26%.

On the

New York Stock Exchange

, decliners beat advancers 1,519 to 1,501 on 939 million shares. On the

Nasdaq Stock Market

winners beat losers 2,361 to 1,811 on 1.3 billion shares.

On the NYSE, 94 issues set new 52-week highs while 16 touched new lows. On the Nasdaq, 185 issues set new highs while new lows totaled 28.

On the Big Board,

AT&T

(T) - Get Report

was most active, with 15.4 million shares changing hands. It was up 2 13/16 to 85 1/16.

On the Nasdaq,

MCI WorldCom

(WCOM)

was most active on volume of 36.1 million. The stock was down 1/16 to 75.

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

.

3:09 p.m.: Stocks Turn Mixed as Jobs Data Rally Fizzles

Internet stocks continued to fly but are off their session highs, as

TheStreet.com Internet Sector

index was lately up 4%.

Index components

CMGI

(CMGI)

was up a whopping 20 1/2, or 12%, to 191,

Yahoo!

(YHOO)

was up 13 1/4, or 4%, to 333 5/8, while

Amazon.com

(AMZN) - Get Report

was up 15 15/16, or 10%, to 175.

Broadcast.com

(BCST)

, which is not an index component, was up a whopping 44 1/2, or 34%, to 175. The

Nasdaq Stock Market

said today it contacted the company and asked that it issue a statement specifying any developments that might explain the unusual trading activity in the company's stock. In response to the request, Broadcast.com said it was company policy not to comment on unusual market activity, Nasdaq said.

The stock has traded in a huge range today, as Internet stocks are wont to do.

Jay Suskind, head of institutional equity trading at

Ryan Beck

, commenting on Broadcast.com's trading range today -- the stock has hit a high of 230 and a low of 147 15/16 -- said: "That's unbelievable."

Suskind said he sees the sector's wild advances building to a crescendo. In the wake of the crescendo, the repercussions could spread elsewhere, cautioned Suskind.

"I'm afraid for the overall market," he said.

As for the rest of the market, the

Dow Jones Industrial Average

was lately up 6 to 9548. The

S&P 500

was down 8 to 1262. The

Nasdaq Composite Index

was down 6 to 2320. The small-cap

Russell 2000

was down fractionally at 427.

On the

New York Stock Exchange

, decliners were beating advancers 1,730 to 1,249 on 747 million shares. On the

Nasdaq Stock Market

winners were beating losers 2,150 to 1,919 on 1.0 billion shares.

On the NYSE, 86 issues had set new 52-week highs while 13 had touched new lows. On the Nasdaq, 170 issues had set new highs while new lows totaled 24.

On the Big Board,

Iomega

(IOM)

was most active, with 14 million shares changing hands. It was down 5/16 to 9 5/16.

On the Nasdaq,

Data Broadcasting

(DBCC)

was most active, with 27 million shares changing hands. The stock was up 5 3/4 to 25 13/16.

1:56: Internet Stocks Continue to Surge

Internet mania struck again today as cyberspace issues took off into a market world of its own, sending

TheStreet.com Internet Sector

index soaring 10%.

CMGI

(CMGI)

was up a whopping 37, or 22%, to 207 3/8,

Yahoo!

(YHOO)

was up 27 15/16, or 9%, to 348 1/8, while

Amazon.com

(AMZN) - Get Report

was up 30 5/16, or 19%, to 189 1/8.

Broadcast.com

(BCST)

, which is not an index component, was lately up a ridiculous 59 5/8, or 47%, to 59 5/8. The

Nasdaq Stock Market

said today it contacted the company and asked that it issue a statement specifying any developments that might explain the unusual trading activity in the company's stock. In response to the request, Broadcast.com said it was company policy not to comment on unusual market activity, Nasdaq said. Trading had been halted in the stock earlier today.

Back on earth, the major market barometers were mostly higher, with the exception of the

S&P 500

, which was down 2 to 1268. The

Dow Jones Industrial Average

, which earlier has climbed above 9600 before easing off, was up 47 to 9585. The

Nasdaq Composite Index

was up 17 to 2343, again in record territory. The small-cap

Russell 2000

was up 3 to 431.

The

Dow Jones Transportation Average

was a big winner today, up 2%.

Meanwhile, the

Philadelphia Stock Exchange Forest and Paper Products Index

was lately up 5%.

On the

New York Stock Exchange

, decliners were beating advancers 1,522 to 1,412 on 621 million shares. On the Nasdaq, winners were beating losers 2,179 to 1,763 on 874 million shares.

On the NYSE, 84 issues had set new 52-week highs while 12 had touched new lows. On the Nasdaq, 159 issues had set new highs while new lows totaled 16.

On the Big Board,

Iomega

(IOM)

was most active, with 13 million shares changing hands. It was down 1/8 to 9 1/2.

On the Nasdaq,

Data Broadcasting

(DBCC)

was most active, with 24 million shares changing hands. The stock was up 6 5/8 to 26 5/8.

Sector Focus: Brokerage Stocks

Brokerage stocks were flying today as they have so far this young new year. The

American Stock Exchange Broker/Dealer Index

was lately up 4%. Already this year -- meaning this week -- the index is up roughly 21%.

Financials in general were bolstered yesterday by

Lehman Brothers

(LEH)

and

Morgan Stanley Dean Witter

(MWD)

, which blew away analysts' estimates for fourth-quarter earnings. Lehman was lately up 2 11/16 to 56 13/16, while Morgan Stanley jumped 3 to 87 3/16. Lehman, however, is still well below its 52-week intraday high of 85. Morgan Stanley's 52-week intraday high is 97 1/2.

Those stocks were among the biggest winners in the brokerage index so far today.

1:13 p.m.: Midday Musings: Market Continues Showing Big-Time Strength

12:07 p.m.: Dow Climbs Back Above 9600

The

Dow Jones Industrial Average

clawed just above 9600 again while all of the market's major gauges were on the plus side and Internet stocks were surging.

The Dow was lately up 72 to 9610.

Dow component

Alcoa

(AA) - Get Report

reported earnings of $1.18 a share, beating the

First Call

15-analyst consensus estimate of $1.06 a share. The company also set a 2-for-1 stock split and a 10-million share repurchase program, pre-split. It was lately up 6 11/16, or 9%, to 83 15/16.

Meanwhile, the

S&P 500

was up 1 to 1271. The

Nasdaq Composite Index

was up 26 to 2353. The

Russell 2000

was up 3 to 431.

The 30-year Treasury bond was lately down 19/32 to 99 25/32, yielding 5.27%.

Strength in the market was attributed to the strong December

employment report

. The

Labor Department

reported

nonfarm payrolls

jumped a much-larger-than-expected 378,000 -- much higher than analysts' expectations -- and pushing the jobless rate down to 4.3%.

Sector-wise, today's winners so far include oil service, brokerages, forest and paper products. The

Philadelphia Stock Exchange Oil Service Index

was up 1%, the

American Stock Exchange Broker/Dealer Index

was up 4% and the

Philadelphia Stock Exchange Forest and Paper Products Index

was up 4%.

On the downside, gold mining stocks and drug stocks were weaker. The

Philadelphia Stock Exchange Gold and Silver Index

and the the

Amex Pharmaceutical Index

were both down 1%.

On the

New York Stock Exchange

, advancers were beating decliners 1,410 to 1,350 on 418 million shares. On the

Nasdaq Stock Market

winners were beating losers 2,002 to 1,556 on 576 million shares.

On the NYSE, 76 issues had set new 52-week highs while 6 had touched new lows. On the Nasdaq, 133 issues had set new highs while new lows totaled 11.

On the Big Board,

Iomega

(IOM)

was most active, with 11 million shares changing hands. It was down 1/16 to 9 9/16.

On the Nasdaq,

Data Broadcasting

(DBCC)

was most active, with 18 million shares changing hands. The stock was up 6 3/4 to 26 3/4.

Tech Focus

Among the major tech-type indices, the

Philadelphia Stock Exchange Computer Box Maker Index

was up 1%, the

Morgan Stanley High-Tech 35

was up 2% and the

Nasdaq 100

was up 1%.

The

Philadelphia Stock Exchange Semiconductor Index

was up 1%.

AT&T

(T) - Get Report

said it expects earnings per share from continuing operations for 1999 to be in the range of $4.20 to $4.30, excluding the impact of its proposed merger with

TCI

(TCOMA)

and the separately announced stock split and share repurchase. Assuming completion of the TCI deal, a takeover valued at about $50 billion, AT&T said total capital spending is expected to range from $11 billion to $12 billion in 1999. AT&T was lately up 13/16 to 82 15/16.

The company said it will also form joint ventures with five of TCI's cable affiliates.

The long-distance titan also announced plans for a $4 billion stock buyback program and a 3-for-2 stock split.

Lucent Technologies

(LU)

announced an accounting change that will result in a one-time after-tax gain of $1.3 billion, or about 97 cents a share, in the quarter ended Dec. 31. The modified accounting method and the adoption of new retirement provisions are expected to result in additional net income of about $170 million in fiscal 1999. The company was up 1 5/16 to 117 13/16.

In the Newsletters

Sun Microsystems

(SUNW) - Get Report

and

Microsoft

(MSFT) - Get Report

have been ordered to immediately schedule a settlement conference to end a dispute regarding their respective native interfaces that specify how computer code interacts with Java, a Dec. 29 ruling from a federal judge said, according to a story on

Computerworld's

Web Site.

10:58 a.m.: Stocks Pare Early Gains

A giddy Internet sector was flying this morning, with cyberspace bellwethers like

Yahoo!

(YHOO)

and

Amazon.com

(AMZN) - Get Report

shooting sharply higher.

Yahoo! swelled 28 1/2 to 348 3/4, while Amazon.com was up 28 3/8 to 187 1/4.

TheStreet.com Internet Sector

index was up 31, or 7%, to 506.

The major stock indices were off their best levels of the day after having surged early on in the wake of an extremely robust December

employment report

. The

Labor Department

reported

nonfarm payrolls

jumped an eye-popping 378,000 -- much higher than analysts' expectations -- pushing the jobless rate down to 4.3%.

The

Dow Jones Industrial Average

was up 18 to 9555. The

S&P 500

was up 1 to 1271. The

Nasdaq Composite Index

was up 16 to 2342. The

Russell 2000

was up 2 to 430.

"It's more of the same," said Ricky Harrington, senior vice president and technical analyst at

Interstate/Johnson Lane

, earlier in the session when all of the major indices were sharply higher. "This is real blow-off action," he said.

"This is a liquidity driven market," he said, adding, "it's simply a function of supply and demand."

Harrington warned the market is close to an exhaustion point right now, noting the market is in the area of a top right now and he sees the market tumbling as much as it has risen. "We're getting very close to the exhaustion point."

"It's an extremely dangerous market," he said. "It's disconnecting from the fundamentals."

In the Treasury market, the 30-year bond tumbled in the wake of the strong jobs data. It was lately down 16/32 to 99 28/32, yielding 5.26%.

Market internals were positive.

On the

New York Stock Exchange

, advancers were beating decliners 1,332 to 1,273 on 267 million shares. On the

Nasdaq Stock Market

winners were beating losers 1,839 to 1,387 on 397 million shares.

On the NYSE, 68 issues had set new 52-week highs while 5 had touched new lows. On the Nasdaq, 115 issues had set new highs while new lows totaled 7.

On the Big Board,

Iomega

(IOM)

was most active, with 9 million shares changing hands. It was down 1/16 to 9 9/16.

On the Nasdaq,

Data Broadcasting

(DBCC)

was most active, with 12 million shares changing hands. The stock was up 4 1/16 to 24 1/16.

10:04 a.m.: Jobs Data Send Stocks Soaring

Stocks rose after the release of a robust December jobs report, with the tech-heavy

Nasdaq Composite Index

leading the way while the

Dow Jones Industrial Average

has risen above 9600.

The

Labor Department

reported

nonfarm payrolls

jumped a whopping 378,000 -- much higher than analysts' expectations -- and pushing the jobless rate down to 4.3%. A

Reuters

poll of economists, on average expected payrolls to show job growth of 212,000.

The Dow rose 65 to 9602. The

S&P 500

was up 8 to 1277. The

Nasdaq Composite Index

was up 40 to 2366. The small-cap

Russell 2000

was up 4 to 432.

TheStreet.com Internet Sector

was up 44 to 520.

The 30-year Treasury bond was lately down 11/32 to 100 1/32, yielding 5.25%.

AT&T

(T) - Get Report

, a Dow component, said it expects earnings per share from continuing operations for 1999 to be in the range of $4.20 to $4.30, excluding the impact of its proposed merger with

TCI

(TCOMA)

and the separately announced stock split and share repurchase. Assuming completion of the TCI deal, AT&T said total capital spending is expected to range from $11 billion to $12 billion in 1999.

AT&T was lately up 1 3/16 to 83 3/8.

Most Up at Open -- NYSE

Cable & Wireless

(CWP)

, up 3 7/8 to 43 7/8: The company is the subject of takeover speculation, with the potential buyer said to be

Deutsche Telekom

(DT) - Get Report

.

Most Up at Open -- Nasdaq

Network Solutions (NSOL) , up 43 1/2 to 260

.

Most Down at Open -- NYSE

Telecom Italia (TI) , down 1 7/8 to 95 9/16

.

Most Down at Open -- Nasdaq

Hibbett Sporting Goods (HIBB) - Get Report, down 7 3/8 to 20 1/8

: The company said fourth-quarter sales would fall short of Wall Street expectations.