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Nasdaq Builds on Last Week's Big Gains

However, the Dow closed in the red.

While the blue-chip

Dow Jones Industrial Average

slipped, the

Nasdaq Composite Index

leapt, adding another hefty gain on top of last week's 4.7% advance.

Internet stocks soared. Providing the biggest boost to

TheStreet.com Internet Sector

index was

Yahoo!

(YHOO)

, which was up 14 9/16, or 10.1%, to 158 7/8.

Brokerage stocks rallied in part on optimism ahead of some key earnings reports slated to be released this week. The

American Stock Exchange Broker/Dealer Index

was up 5%.

As for the Dow,

Alcoa

(AA) - Get Alcoa Corp. Report

was the biggest drag on the average. It fell 4 3/16, or 6.2%, to 63 3/8.

On the

New York Stock Exchange

, advancers beat decliners 1,585 to 1,398 on 680.1 million shares. On the

Nasdaq Stock Market

, winners beat losers 2,168 to 1,752 on 895 million shares.

On the NYSE, 110 issues set new 52-week highs while 63 touched new lows. On the Nasdaq, 124 issues set new highs while new lows totaled 40.

On the NYSE,

America Online

(AOL)

was most active with 19.7 million shares changing hands. It was up 3 3/8 to 115 3/8.

On the Nasdaq,

Microsoft

(MSFT) - Get Microsoft Corporation (MSFT) Report

was most active, with 27.9 million shares changing hands. It was up 3 15/16 to 88 15/16.

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

3:02 p.m.: Stocks Remain Mixed as Treasury Market Climbs From Its Session Lows

Technology, brokerage, and Internet stocks continued to thrive, while the blue-chip

Dow Jones Industrial Average

remained in the red, as the 30-year Treasury bond has managed to lift itself off its worst levels of the session.

The

Nasdaq 100

was up 2%, while the

Philadelphia Stock Exchange Semiconductor Index

was up 4%. Among the components of the semiconductor index,

Texas Instruments

(TXN) - Get Texas Instruments Incorporated Report

was up 4 7/8 to 137 5/8. It hit a 52-week intraday high earlier when it peaked at 137 3/4.

Intel

(INTC) - Get Intel Corporation (INTC) Report

, which has taken a beating lately, was bouncing back today and was up 2 to 56 7/8.

Motorola

(MOT)

was up 2 11/16 to 95 13/16. It too hit a 52-week intraday high when it peaked at the 95 5/8 level.

Micron Technology

(MU) - Get Micron Technology, Inc. (MU) Report

was up 2 1/4 to 47 1/4. The company is slated to report earnings Wednesday.

The

American Stock Exchange Broker/Dealer Index

was up 4%, in part on optimism ahead of some key earnings reports.

Lehman Brothers

(LEH)

,

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. (GS) Report

, and

Morgan Stanley Dean Witter

(MWD)

, which are all index components, are slated to report earnings this week.

In the Internet sector, powering

TheStreet.com Internet Sector

index were

Yahoo!

(YHOO)

,

Lycos

(LCOS)

and

Amazon.com

(AMZN) - Get Amazon.com, Inc. Report

.

Weighing the most on the

Dow Jones Industrial Average

was

Alcoa

(AA) - Get Alcoa Corp. Report

, which was off 4 3/16, or 6%, to 63 3/8.

Chevron

(CHV)

,

General Electric

(GE) - Get General Electric Company (GE) Report

and

Exxon

(XON) - Get Intrexon Corporation Report

were also notable drags on the Dow.

Meanwhile, in the Treasury market, the long bond had been down about a full point earlier in the session. The benchmark Treasury has been pressured by a big corporate new issue calendar and on a rally in overseas stock markets.

In a research note this morning ahead of the open, John Roque, senior analyst at

Arnhold & S. Bleichroeder

, wrote he doesn't think the 30-year Treasury bond has bottomed and he sees the yield on the long bond rising to 6.5%. He sees resistance for the September futures contract at 116, 116 8/32, and 116 20/32. Support for the contract is at 114 17/32, 114 2/32 and 113 25/32, according to Roque. He wrote that a close above 116 20/32 would be a good sign for bonds and imply a run up to 118. However, a close under 113 25/32 -- the June 11 low -- "will be another bearish breakdown and we'll be staring at 6.5% in a N.Y. minute," he wrote. The September contract was down 26/32 to 114 30/32.

As for stocks: "Upside and downside seem limited for the S&P 500 which means the market is in a trading range. But it looks to us like the next move is up as the DJIA and

S&P 500

test their May highs of 11,130.67 and 1375.98. Perhaps it may sound like we are equivocating but we don't think so and here's why -- we think upside is limited because the 30-year bond is bearish and we also think downside is limited because institutional investors are cautious."

On the

New York Stock Exchange

, decliners were beating advancers 1,476 to 1,410 on 512 million shares. On the

Nasdaq Stock Market

, winners were beating losers 2,000 to 1,824 on 686 million shares.

On the NYSE, 97 issues had set new 52-week highs while 58 had touched new lows. On the Nasdaq, 108 issues had set new highs while new lows totaled 37.

On the NYSE,

America Online

(AOL)

was most active with 16 million shares changing hands. It was up 3 3/16 to 115 3/16.

On the Nasdaq,

Dell

(DELL) - Get Dell Technologies Inc Class C Report

was most active, with 22 million shares changing hands. It was up 2 1/16 to 38 13/16.

1:56 p.m.: Stocks Remain Mixed as Treasury Market Gets Slammed

Major market averages were mixed this afternoon while the 30-year Treasury bond continued to get hammered.

A heavy new issue calendar in the corporate market and a surge in overseas equity markets have contributed to the Treasury market's woes as the yield on the long bond was firmly above the 6% level.

Stocks in the technology sector, renowned for their high valuations, which make them sensitive to movements in the bond market, have been able to ignore the poor action in Treasuries and advance solidly.

The

Nasdaq 100

was up 1%, while the

Philadelphia Stock Exchange Semiconductor Index

was up 3%.

A slump in oil prices was in part weighing on oil and oil service stocks. The

Chicago Board Options Exchange Oil Index

was down 3%, while the

Philadelphia Stock Exchange Oil Service Index

was down 5%.

Oil stocks were a notable drag on the

Dow Jones Industrial Average

.

Chevron

(CHV)

was off 2 9/16 to 90 5/8, while

Exxon

(XON) - Get Intrexon Corporation Report

was down 2 5/8 to 77 3/4. The July crude oil futures contract was down 1.8% to $17.66 a barrel.

On the

New York Stock Exchange

, decliners were beating advancers 1,545 to 1,308 on 428 million shares. On the

Nasdaq Stock Market

, winners were beating losers 1,908 to 1,756 on 564 million shares.

On the NYSE, 91 issues had set new 52-week highs while 53 had touched new lows. On the Nasdaq, 104 issues had set new highs while new lows totaled 27.

On the NYSE,

America Online

(AOL)

was most active with 14 million shares changing hands. It was up 2 9/16 to 114 9/16.

On the Nasdaq,

Dell

(DELL) - Get Dell Technologies Inc Class C Report

was most active, with 18 million shares changing hands. It was up 1 5/8 to 38 5/16.

Company Focus: barnesandnoble.com

Underwriters on

barnesandnoble.com's

(BNBN)

IPO initiated coverage of the stock today, helping give the stock a bit of a boost.

Goldman Sachs

initiated coverage with a market outperform rating;

Merrill Lynch

with a near-term accumulate, long-term buy rating; and

Salomon Smith Barney

and

Wit Capital

initiated coverage with a buy rating.

TheStreet Recommends

barnesandnoble.com was up 7/8 to 18 13/16.

In May, its 25 million-share IPO was priced at $18 a share.

Since shares of barnesandnoble.com began trading, on an intraday basis, the stock has traded as low as 14 1/4 and traded as high as 26 5/8.

Goldman and Merrill were lead underwriters on the IPO, while Salomon Smith Barney and Wit Capital were co-managers.

12:52 p.m.: Midday Musings: Techs Bound Higher as Cyclicals Drag Dow Down

12:01 p.m.: Nasdaq Hovers Near Session Highs Amid Strength in Internet, Tech Sectors

The 30-year Treasury bond was getting pummeled as the

Dow Jones Industrial Average

and

S&P 500

were underwater, while the

Nasdaq Composite Index

has resisted the downward trend and was strong going into the lunch hour.

Treasuries were taking a shellacking in part due to the strength in overseas stock markets and under the weight of upcoming corporate supply.

Technology and Internet stocks, issues of the growth variety, whose valuations (high) make them sensitive to bonds' movements, are managing to ignore the sharp drop in the Treasury market. The Nasdaq Comp was slightly off its session highs.

America Online

(AOL)

and

Hughes Electronics

(GMH)

set an alliance to develop and market integrated digital entertainment and Internet services nationwide. AOL was up 2 3/4 to 114 3/4, while Hughes was up 2 to 55 7/16. AOL was most active on the

New York Stock Exchange

, with 10 million shares changing hands.

About.com

(BOUT) - Get Innovator IBD Breakout Opportunities ETF Report

was up 4 5/8, or 12%, to 44 1/8. Shares in the Internet media concern began rising around 11 a.m. EDT and hasn't faded yet. Volume totaled 78,300 shares.

On the NYSE, decliners were beating advancers 1,407 to 1,291 on 288 million shares. On the

Nasdaq Stock Market

, winners were beating losers 1,836 to 1,551 on 384 million shares.

On the NYSE, 81 issues had set new 52-week highs while 37 had touched new lows. On the Nasdaq, 87 issues had set new highs while new lows totaled 17.

Dell

(DELL) - Get Dell Technologies Inc Class C Report

was most active on the Nasdaq, with 13 million shares changing hands. It was up 1 1/4 to 37 15/16.

Tech Focus

On the tech M&A front,

ADC Telecommunications

(ADCT) - Get ADC Therapeutics SA Report

, a global supplier of voice, video and data systems and software for communications networks, is buying

Saville Systems

(SAVLY)

, an Irish software company, for roughly $700 million in stock. ADC was off 3 5/16, or 7%, to 46 13/16, while Saville was down 3/16 to 15 7/16.

Phoenix Technologies

(PTEC)

, a system software developer, was flooding the news in the tech sector this morning, announcing several pacts, sending its stock sharply higher. Phoenix was up 3 15/16, or 34%, to 15 9/16.

The company said it has formed

ebetween

, a new subsidiary in which

Softbank

has signed a letter of intent to acquire a 20% stake. (Softbank is a minority investor in

TheStreet.com Inc.

(TSCM)

, publisher of this Web site.)

The company also named Albert E. Sisto president and CEO, effective immediately. Sisto succeeds Jack Kay, who will continue to consult with the company and remain on its board.

The

Philadelphia Stock Exchange Computer Box Maker Index

was up 2%. The

Nasdaq 100

was up 1%. The

Morgan Stanley High-Tech 35

was also up 1%.

10:57 a.m.: Strength in Internet, Tech Sectors Continues to Boost Nasdaq

The

Nasdaq Composite Index

was extending its recent steamy advance, as the technology and Internet sectors were shining early on.

The

Philadelphia Stock Exchange Computer Box Maker Index

and the

Nasdaq 100

were up 1%. The

Philadelphia Stock Exchange Semiconductor Index

was up 2%.

Speaking of chip stocks,

Intel

(INTC) - Get Intel Corporation (INTC) Report

, which was beaten up late last week, was regaining some ground this morning and was up 1 5/8 to 56 1/2.

Leading

TheStreet.com Internet Sector

were

Yahoo!

(YHOO)

and

Lycos

(LCOS)

.

As for Yahoo!,

The Sunday Times

of London reported yesterday that

Reuters Group

(RTRSY)

is in talks with Yahoo! about a link-up that will give retail investors access to Instinet, a unit of Reuters. Yahoo! was up 8 3/4 to 153 1/4.

Among the host of tech sector alliances and partnerships announced today, Lycos and

Lotus Development

, a unit of

IBM

(IBM) - Get International Business Machines (IBM) Report

, announced an agreement that will include Lycos in the new version of

Lotus Notes

. Lycos was up 6 3/4 to 94 5/8. IBM was the biggest boost to the

Dow Jones Industrial Average

. Big Blue was up 2 1/2 to 123 1/4.

Brokerage stocks were higher. Tomorrow

Lehman Brothers

(LEH)

is slated to report earnings, while later this week,

Morgan Stanley Dean Witter

(MWD)

is slated to report earnings. Lehman was up 2 7/16 to 58 1/2, while Morgan Stanley was up 2 7/8 to 98 5/8.

Peter Coolidge, managing director of trading at

Brean Murray Foster Securities

, said everything in the market is somewhat on hold ahead of next week's

Federal Open Market Committee

meeting.

Most market participants are expecting the Fed to raise short-term interest rates by 25 basis points. Fears of a series of rate hikes have subsided, however, after last week's market-friendly

Consumer Price Index

report and

Federal Reserve

Chairman

Alan Greenspan's

testimony.

In the news,

Phillips Petroleum

(P)

said Wayne Allen, chairman and CEO, is retiring and will be succeeded by current president and chief operating officer James Mulva. Phillips was down 1 7/8 to 49 15/16.

Market internals were positive.

On the

New York Stock Exchange

, advancers were beating decliners 1,286 to 1,216 on 192 million shares. On the

Nasdaq Stock Market

, winners were beating losers 1,754 to 1,314 on 262 million shares.

On the NYSE, 76 issues had set new 52-week highs while 26 had touched new lows. On the Nasdaq, 77 issues had set new highs while new lows totaled 13.

On the NYSE,

America Online

(AOL)

was most active, with 8 million shares changing hands. It was up 1 13/16 to 113 13/16.

On the Nasdaq,

Dell

(DELL) - Get Dell Technologies Inc Class C Report

was most active, with 9 million shares changing hands. It was up 1 1/4 to 37 15/16.

9;53 a.m.: Stocks Open Mostly Higher as Internet, Tech Sectors Jump

Stocks were mostly higher early on in the wake of last week's rally, as technology and Internet stocks were helping lead the market on the upside.

As one would expect on a Monday, mergers and acquisitions were prominent items in the news this morning.

Weyerhaeuser

(WY) - Get Weyerhaeuser Company Report

is acquiring

MacMillan Bloedel

of Canada in a stock deal valued at about $2.45 billion based on Friday's closing prices of both stocks.

Meanwhile, the dollar got a boost after the

Bank of Japan

entered the currency markets and sold yen.

Most Up at Open -- NYSE

Sony (SNE) - Get SONY GROUP CORPORATION SPONSORED ADR Report, up 2 3/16 to 105 5/8

.

Most Up at Open -- Nasdaq

eBay (EBAY) - Get eBay Inc. Report, up 5 9/16 to 151 3/4

.

Most Down at Open -- NYSE

Texas Instruments (TXN) - Get Texas Instruments Incorporated Report, down 2 to 130 3/4

: Texas Instruments plans to buy Israel's

Libit Signal Processing

for $365 million.

Most Down at Open -- Nasdaq

ADC Telecommunications (ADCT) - Get ADC Therapeutics SA Report, down 2 11/16 to 47 7/16

: ADC, a global supplier of voice, video and data systems and software for communications networks, is buying

Saville Systems

(SAVLY)

, an Irish software company, for roughly $700 million in stock.