Nasdaq Closes Up While Dow, S&P 500 Post Losses

The Internet sector also managed to close higher after a volatile session.
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Dropping 100 points in 30 minutes will not help a rally. After jumping into the green during the late afternoon, the

Dow Jones Industrial Average

free-fell into the close. Somehow, the

Nasdaq Composite

and

TheStreet.com Internet Sector

index knocked out gains.

So which sectors did well? The

Philadelphia Stock Exchange Computer Box Maker Index

,

Philadelphia Stock Exchange Oil Service Index

,

TheStreet.com E-Finance Index

and the

Philadelphia Stock Exchange Gold and Silver Index

, that's who! Box makers built up 9.65 to 315.23. Oil servicers gushed up 3.28 to 85.15. E-Financiers rang up 1 7/32 to 60 31/32. Gold and silver were just precious, up 2.09 to 67.34.

On the flip side, the

Philadelphia Stock Exchange Forest & Paper Products Index

,

Philadelphia Stock Exchange Phone Index

and the

S&P Retail Index

were not doing anything well. Forest and papers were pulped and dropped 12.99 to 333.58. The phones fell off the hook and made that horrible bleating noise, down 11.42 to 448.80. Retailers were sold all day, down 20.30 to 817.30.

"Brains! Brains!" No, not the zombies from

Night of the Living Dead

, but

Cisco

(CSCO) - Get Report

, which announced a $2 billion strategic alliance with

IBM Global Services

. As part of the deal, Cisco will purchase portions of

IBM's

(IBM) - Get Report

networking intellectual property. IBM shook off the shotgun blasts, up 1 7/16 to 124 5/8. Cisco clawed through the front door, up 1 to 67 13/16.

"Everybody's laughing, sunshine day! Everybody's laughing, sunshine day!"

Sun Microsystems

(SUNW) - Get Report

sang along with those perky

Bradys

as it announced the purchase of

Star Division

, a privately held developer of office software.

Merrill Lynch

joined in on the fun and added Sun to its Focus One list, raising its price target to 95 from 90. Sun warbled its way to 79 1/2, up 3 7/8, or 5%.

Web telephony

Net2Phone

(NTOP)

should rename itself "Money2Bank" after rising 12 1/2, or 17%, to 85. The rise stemmed from news that

AT&T

(T) - Get Report

signed a five-year deal expanding the company's network to 17 countries with an option for 12 more. AT&T was just "BA&D," falling 1, or 2%, to 45.

Employee office supply graft must be off this month, because two leading retailers took hits from analysts today. Big Board volume leader

Office Depot

(ODP) - Get Report

got clipped by a quartet of analysts:

PaineWebber

,

Deutsche Bank Alex. Brown

,

ABN Amro

,

Morgan Stanley

and

Brown Brothers Harriman and Co.

In heavy trading,

Staples

(SPLS)

was cut by PaineWebber and nearly bled to death, down 1/4, or 1%, to 21 3/4. Office Depot found the Band-Aids in time, up 1/8 to 10 5/8.

Johnson and Johnson

(JNJ) - Get Report

was down 1/8 to 102 1/4.

On the

New York Stock Exchange

, decliners were beating advancers 1,662 to 1,304 on 843 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,967 to 1,861 on 964 million shares.

On the NYSE, 100 issues had set new 52-week lows while 20 had touched new highs. On the Nasdaq, 82 issues had set new 52-week lows while new highs totaled 61.

Earlier...

3:02 p.m.: Stocks Mostly Lower as Internet Sector Recovers

"Don't call it a comeback?"

LL Cool J

was last seen walking on Wall Street looking for someone his mama said to knock out. The

Dow Jones Industrial Average

and the

Nasdaq Composite

rocked

Kangols

and looked for

Kool Moe Dee

.

TheStreet.com Internet Sector

index was walking with a panther, up 4 to 555.

1:59 p.m.: Stocks Lower Amid Tumble in Internet Sector

If you wear

Journey

t-shirts, live at home and hang out at high schools to pick up "chicks," then you're a loser. You're also a loser if you're the

Dow Jones Industrial Average

, the

Nasdaq Composite

, or

TheStreet.com Internet Sector

index.

1:11 p.m.: Midday Musings: Inflation Fears Slap Stocks, Bonds Lower

12:14 p.m.: Stocks Lower in Volatile Trading

For the most part they're gone. With the loss of enthusiasm for Treasuries, so did, in part, vivacity for stocks, in what has been a choppy session so far. Major market averages were all lower heading into the lunch hour on Wall Street.