Major Indices Close Higher After Dramatic Rebound From Big Losses

However, market internals were dismal.
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TheStreet.com Internet Sector

index, after falling as much as 7.6% intraday, made a stunning recovery and closed up a beefy 4.8%.

Meanwhile, looming on the horizon is the much-anticipated release tomorrow of the July

employment report

. The

July jobs data is slated for release at 8:30 a.m. EDT. The

Reuters

consensus estimate calls for the household unemployment rate to remain steady at 4.3%, and for average hourly earnings to rise by 0.3%.

Major market averages -- after being down sharply in the morning -- recovered and ended higher, led by the

Dow Jones Industrial Average

. However market internals were nasty. Volume was robust for the most part.

On the

New York Stock Exchange

, decliners beat advancers 1,818 to 1,192 on 858.6 million shares. On the

Nasdaq Stock Market

, losers beat winners 2,299 to 1,668 on 1.16 billion shares.

On the NYSE, 196 issues set new 52-week lows while 39 touched new highs. On the Nasdaq, 199 issues set new 52-week lows while new highs totaled 35.

Intraday, the

Dow Jones Industrial Average

had traded as low as 10,566.18; the

S&P 500

traded as low as 1287.30; while the

Nasdaq Composite Index

traded as low as 2474.41. Some market participants called the snapback a technical rally because of the market's oversold condition. The Treasury market rallied on flight-to-safety buying.

On the Big Board,

America Online

(AOL)

was most active, with 57 million shares changing hands. It was down 3 15/16 to 83 1/2. AOL has been pressured in part by an article in

The Wall Street Journal

that said

Microsoft

(MSFT) - Get Report

is laying plans for low-priced, or perhaps even free, Net access in a challenge to AOL's dial-up Net-access business.

On the Nasdaq, Microsoft was most active, with 38.2 million shares changing hands. It was up 13/16 to 85 3/4.

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

Earlier...

2:56 p.m.: Rebound From Lows Continues as Internals Stay Ugly

For a while this morning it seemed like the selling was never going to stop. That stocks would tumble indefinitely and that the major market averages were going back to flat year-to-date.

But after swooning to their session lows late this morning, the

Dow Jones Industrial Average

, the

S&P 500

and the

Nasdaq Composite Index

staged an impressive rally, eventually climbing back into the green.

1:54 p.m.: Major Indices Slightly Higher but Market Internals Are Horrible

Before getting too excited by the fact that the market's major gauges have rallied off their sharp session lows (the

Dow Jones Industrial Average

, the

S&P 500

, the

Nasdaq Composite Index

and even

TheStreet.com Internet Sector

index have even managed to climb into positive territory), consider market internals.

1:14 p.m.: Midday Musings: Bounce From Lows Brings Cheer, Along With Skepticism

11:59 a.m.: Internet Sector Erases Big Losses

TheStreet.com Internet Sector

index, after falling dramatically earlier, has now managed to climb into the green.

10:58 a.m.: Internet Sector Leads Broad Tumble

Internet stocks were leading the way into the abyss this morning as stocks were getting sliced up as a major bout of selling strangled the market.

9:57 a.m.: Stocks Add to Recent Losses

Internet stocks were getting pounded again early today, piling on to the chunky losses they've endured lately.