Word of a whopping $16 billion technology pact between

IBM

(IBM) - Get Report

and

Dell

(DELL) - Get Report

gave technology stocks a shot of adrenalin as the

Nasdaq Composite Index

was leading the market higher, up 2%.

As part of the agreement -- which the companies said they believed was the largest of its kind in the information tech industry -- Dell will purchase storage, microelectronics, networking, and display technology from IBM for integration into Dell computer systems. In the future, the agreement is expected to include IBM's copper, silicon-on-insulator, and other advanced technologies.

IBM has leapt 8 15/16, or 5%, to 175 11/16, while Dell was up 2 5/8 to 83 1/2. Dell was most active on the

Nasdaq Stock Market

on volume of 19 million.

"Techs are up for a change," said Scott Curtis, senior equity trader at

Brown Brothers Harriman

, noting the IBM-Dell news has helped pump up the market.

Curtis, however, cautioned that people are still nervous about tomorrow's

employment report

. Economists expect an increase of 245,000 in nonfarm payrolls, according to a

Reuters

survey.

Lately, evidence of continued robust strength in the economy has sparked fears that the

Federal Reserve

will hike interest rates to cool down the economy, which has battered the bond market. Also, the bond market's weakness and rise in interest rates has particularly exposed the tech stocks, Curtis noted.

The

Nasdaq Composite Index

was up 39 to 2304.

The

Dow Jones Industrial Average

was up 131 to 9407. IBM accounted for roughly 39 points of the Dow's gain.

The

S&P 500

was up 16 to 1244.

The small-cap

Russell 2000

was in its typical position of market laggard, up just 2 to 394.

TheStreet.com Internet Sector

index was up 1 to 522.

TheStreet.com E-Commerce Index

was down fractionally at 96.

The 30-year Treasury bond was down 3/32 to 93 18/32, yielding 5.70%.

On the

New York Stock Exchange

, advancers were beating decliners 1,502 to 978 on 224 million shares. On the Nasdaq, winners were beating losers 1,794 to 1,189 on 274 million shares.

On the NYSE, 37 issues had set new 52-week lows while 17 had touched new highs. On the Nasdaq, 37 issues had set new lows while new highs totaled 20.

On the Big Board,

Compaq

(CPQ)

was most active with 8 million shares changing hands. It was up 1/8 to 34.

10:00 a.m.: IBM-Dell Deal Boosts Tech Sector

News of a $16 billion technology pact between

IBM

(IBM) - Get Report

and

Dell

(DELL) - Get Report

has pumped up the tech sector early on.

As part of the contract, Dell will purchase storage, microelectronics, networking, and display technology from IBM for integration into Dell computer systems. In the future, the agreement is expected to include IBM's copper, silicon-on-insulator, and other advanced technologies.

The pact, which spans seven years, also calls for broad patent cross-licensing between the two tech titans and collaboration on development of product technology.

IBM was up 7 5/8 to 174 3/8, while Dell was up 3 1/4 to 83 1/8.

The tech-heavy

Nasdaq Composite Index

was up 28 to 2294.

Elsewhere, the

Dow Jones Industrial Average

was up 46 to 9322. The

S&P 500

was up 8 to 1236. The

Russell 2000

was up 2 to 393.

TheStreet.com E-Commerce Index

was up 1 to 97.

A quote for

TheStreet.com Internet Sector

index was unavailable.

The 30-year Treasury bond was down 3/32 to 93 18/32, yielding 5.70%.

Most Up at Open -- NYSE

American Express (AXP) - Get Report, up 1 15/16 to 109 3/4

:

Salomon Smith Barney

initiated coverage of American Express with a buy rating.

Most Up at Open -- Nasdaq

RF Micro Devices (RFMD) , up 6 13/16 to 88

: The telecommunications equipment company yesterday announced a 2-for-1 stock split.

Most Down at Open -- NYSE

DaimlerChrysler (DCX) , down 2 3/16 to 85 3/4

.

Most Down at Open -- Nasdaq

CheckFree Holdings (CKFR) , down 2 5/8 to 32 7/8

.