The tech-heavy

Nasdaq Composite Index

managed to regain some of the ground it lost in last week's selloff, while blue chip and small-cap proxies slumped and Internet stocks swooned.

The Nasdaq Comp gained 31.29, or 1.3%, to 2404.91. At its peak, the Nasdaq Comp surged 1.7%.

TheStreet.com Internet Sector

gave up 27.67, or 5.2%, to 504.85.

TheStreet.com E-Commerce Index

, which began trading Friday on the

American Stock Exchange

under the symbol ICX, fell 3.36, or 3.2%, to 101.84.

The

Dow Jones Industrial Average

slipped 13.13, or 0.1%, to 9291.11. The

S&P 500

added 4.37, or 0.4%, to 1243.77. The small-cap

Russell 2000

slumped 1.39, or 0.3%, to 411.33.

The 30-year Treasury bond was down 1/32 to 98 16/32, yielding 5.35%.

On the

New York Stock Exchange

, decliners beat advancers 1,580 to 1,314 on 559 million shares. On the

Nasdaq Stock Market

losers beat winners 2,162 to 1,879 on 880 million shares.

On the NYSE, 74 issues set new 52-week lows while 22 touched new highs. On the Nasdaq, 59 issues set new highs while new lows totaled 52.

On the Big Board,

America Online

(AOL)

was most active, with 11.9 million shares changing hands. It was down 5 to 159.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 29.9 million shares changing hands. It was up 3 5/8 to 104 1/16.

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

.

2:57 p.m.: Stocks Stay Narrowly Mixed

Stocks were mixed this afternoon as the

Nasdaq Composite Index

shrugged off some late morning weakness and have risen solidly in the green, while Internet stocks were enduring a pounding.

The Nasdaq Comp rose 24 to 2398.

TheStreet.com Internet Sector

index was down 23 to 509.

Yahoo!

(YHOO)

was down 15 7/16, or 8.95%, to 156 1/2, the biggest loser in the index, followed by

CMGI

(CMGI)

, which has tumbled 11, or 8.91%, to 113 1/16.

Meanwhile,

TheStreet.com E-Commerce Index

, which began trading Friday on the

American Stock Exchange

under the symbol ICX, was down 3 to 102.

The

Dow Jones Industrial Average

was down 7 to 9297. The

S&P 500

was up 5 to 1245. The small-cap

Russell 2000

was down 1 to 411.

Sector-wise, gold mining stocks were showing some strength as were the utilities.

The

Philadelphia Stock Exchange Gold and Silver Index

was up 1%. The

Dow Jones Utility Average

was up 1%.

The

Dow Jones Transportation Average

was off 1%, led on the downside by

AMR

(AMR)

, which fell 2 13/16 to 57 1/8.

American Airlines

, a unit of AMR, said it planned to cancel 360 flights today. That comes on top of the 240 flights it canceled Sunday because of a pilot crew shortage.

Elsewhere, the

Philadelphia Stock Exchange Semiconductor Index

was up 3%. Bolstering the sector -- which fell precipitously last week -- was in part a move by

Merrill Lynch

which upgraded its short-term ratings on the entire semiconductor equipment sector by a notch.

After surging at the open, stocks came off their highs and eventually all the major market averages fell into negative territory. In part the weakness stemmed from cautionary comments on the market over the near term from Ralph Acampora, chief technical analyst at

Prudential Securities

. Also weighing in on the cautionary side was Richard McCabe, chief market analyst at Merrill Lynch.

The 30-year Treasury bond was up 3/32 to 98 20/32, yielding 5.35%.

On the

New York Stock Exchange

, decliners were beating advancers 1,580 to 1,314 on 559 million shares. On the

Nasdaq Stock Market

losers were beating winners 2,044 to 1,703 on 602 million shares.

On the NYSE, 62 issues had set new 52-week lows while 21 had touched new highs. On the Nasdaq, 45 issues had set new highs while new lows totaled 40.

On the Big Board,

Compaq

(CPQ)

was most active, with 10 million shares changing hands. It was up 1 3/16 to 44 134/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 25 million shares changing hands. It was up 3 3/16 to 103 9/16.

2:01 p.m.: Nasdaq, S&P Recover from Losses

The

Nasdaq Composite Index

and

S&P 500

climbed back into positive territory this afternoon while two key Wall Street strategists weighed in with less-than-sanguine comments on the market. >

The Nasdaq Comp was up 13 to 2387. The

Dow Jones Industrial Average

was down 33 to 9272. The S&P 500 was up 1 to 1240. The

Russell 2000

was down 1 to 411.

TheStreet.com Internet Sector

index was down 23 to 510.

TheStreet.com E-Commerce Index

, which began trading Friday on the

American Stock Exchange

under the symbol ICX, was down 3 to 103.

Turning to Treasuries, the 30-year bond was up 6/32 to 98 23/32, yielding 5.34%, but off its intraday highs.

Bermuda-based insurer

XL Capital

(XL) - Get Report

and

NAC Re

(NCR) - Get Report

confirmed today they are in discussions regarding a possible business combination.

The Wall Street Journal

reported today that XL was in talks to buy NAC Re for $1 billion in stock. XL fell slightly to 62 3/16, while NAC Re rose modestly to 44 1/2.

On the

New York Stock Exchange

, decliners were beating advancers 1,557 to 1,286 on 473 million shares. On the

Nasdaq Stock Market

, losers were beating winners 2,044 to 1,703 on 602 million shares.

On the NYSE, 54 issues had set new 52-week lows while 19 had touched new highs. On the Nasdaq, 45 issues had set new highs while new lows totaled 40.

On the Big Board,

Compaq

(CPQ)

was most active, with 9 million shares changing hands. It was up 1 1/16 to 44 3/4.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 22 million shares changing hands. It was up 1 15/16 to 102 3/8.

Focus: Strategists Help Give Market Pause

Cautionary comments from Ralph Acampora, chief technical analyst at

Prudential Securities

, and Richard McCabe, chief market analyst at

Merrill Lynch

, helped contribute to the market's stumble -- after all the major stock gauges opened on the upside -- although the Nasdaq Comp and the S&P 500 have returned to positive territory.

In a commentary note on Prudential's Web site, Acampora wrote: "Over the past several weeks we highlighted in this section our concerns about some technical near-term problems like: negative breadth, too much bullish sentiment and the very poor price action of the

Dow Utility

average."

Today, he added three more problems in his near-term outlook: volume on the Big Board is running at more than 800 million shares a day "with no appreciable upside increase in price momentum"; the recent abundance of stock splits, which he wrote "is usually a late cycle phenomenon"; and the fact that tech stocks are under pressure and many of the tech issues are "still too spiky and could drop another 10%" or more "from current levels before encountering their respective major uptrends or significant support levels."

He sees a "normal" correction on the horizon, meaning a decline in the range of 5% to 10%. "We don't think that this is unreasonable in the light of the fact that so many huge gains were realized since the market's low registered in October 1998. But this normal correction could turn ugly if interest rates become a problem short term," he wrote.

Meanwhile, McCabe wrote in a note today: "We would continue to anticipate an expansion or acceleration of the recent gradually unfolding corrective trend in the market. Such a decline could bring the averages back to approach or test their fall lows (DJIA risk near 7500-8000)."

McCabe recommended that investors "continue to hold or raise some cash reserves and be very selective with regard to new purchases."

1:03 p.m.: Midday Musings: Techs Stand Tall Against Market's Midday Push and Pull

12:03 p.m.: Nasdaq Slips into Negative Territory

The market's pop higher at the open is long but a memory, as the major market averages have all fallen into negative territory.

Meanwhile, Ralph Acampora, the widely followed chief technical analyst at

Prudential Securities

, said he sees a 5% to 10% correction in the market, news which helped take early enthusiasm out of the market.

The

Nasdaq Composite Index

, which surged 1.7% early on, was down 5 to 2369.

The

Dow Jones Industrial Average

was down 92 to 9212. The

S&P 500

was down 7 to 1232. The

Russell 2000

was down 2 to 410.

TheStreet.com Internet Sector

was down 27 to 506.

TheStreet.com E-Commerce Index

was down 5 to 100.

In the Treasury market, the 30-year bond was up 16/32 to 99 1/32, yielding 5.32%. (For more on the fixed-income market, see today's early

Bond Focus.)

On the NYSE, decliners were beating advancers 1,552 to 1,158 on 307 million shares. On the Nasdaq losers were beating winners 1,943 to 1,508 on 418 million shares.

On the NYSE, 40 issues had set new 52-week lows while 16 had touched new highs. On the Nasdaq, 34 issues had set new highs while new lows totaled 32.

On the Big Board,

Compaq

(CPQ)

was most active, with 7 million shares changing hands. It was up 5/16 to 43 15/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, on volume of 16 million. It was down 3/16 to 100 1/4.

Tech Focus

Analyst action helped lift the semiconductor arena overall today as

Merrill Lynch

upgraded its short-term ratings on the entire semiconductor equipment sector by a notch.

The

Philadelphia Stock Exchange Semiconductor Index

was up 1.

Merrill upgraded to short-term and long-term buy ratings:

Applied Materials

(AMAT) - Get Report

,

Cymer Laser

(CYMI)

,

KLA-Tencor

(KLAC) - Get Report

and

Novellus Systems

(NVLS)

.

Merrill also upgraded several other stocks in the sector.

Merrill, in a note, said: "We think the current recovery in the semiconductor sector will expand. Device manufacturers current focus on 'technology' buys is likely to broaden to 'capacity' buys by the fourth quarter of 1999."

Among some of the other tech indices, the

Philadelphia Stock Exchange Computer Box Maker Index

was down 1%. The

Morgan Stanley High-Tech 35

was down 1%. The

Nasdaq 100

was up fractionally.

In the news, a host of linkups were announced in the tech arena

this morning.

Internet software company

Spyglass

(SPYG) - Get Report

announced that Douglas Colbeth, its president and chief executive officer, will be taking a temporary medical leave -- expected to last about eight weeks -- from his daily responsibilities effective immediately. The company said the medical leave is being provided "to proactively treat a cardiac condition which was recently diagnosed." Spyglass fell 3/4, or 6%, to 11 3/8.

11:00 a.m.: Nasdaq Struggles to Remain in Positive Territory

The

Nasdaq Composite Index

was the only major market average in positive territory in the wake of news that Ralph Acampora, the widely followed chief technical analyst at

Prudential Securities

, sees a 5% to 10% correction in the stock market.

Shares of semiconductor equipment stocks gained handsomely, pushing the

Philadelphia Stock Exchange Semiconductor Index

up 2.5%, helping it recover a little bit of the ground it lost last week.

Merrill Lynch

upgraded its short-term ratings on the entire semiconductor equipment sector by a notch today.

Morgan Stanley Dean Witter

, meanwhile, also upgraded some semiconductor equipment stocks.

The Nasdaq Comp was up 9 to 2382. The Nasdaq Comp peaked at 2414.98 before coming off the top.

The

Dow Jones Industrial Average

was down 51 to 9253. The

S&P 500

was down 2 to 1237. The

Russell 2000

was down 1 to 412.

TheStreet.com Internet Sector

index was down 20 to 513.

TheStreet.com E-Commerce Index

was down 5 to 101.

Louis Todd, head of equities trading at

J.C. Bradford

, said something to keep an eye on is the fact that last week about $3 billion left equity mutual funds, citing

AMG Data Services

, while the new stock offerings calendar is building up, indicating a shift in supply and demand, he said, which could put some pressure on the market.

"There's a pretty big pipeline," he said of new issues.

Meanwhile, market participants have been pretty happy overall with fourth-quarter earnings. Also, the U.S. economy, despite weakness in economies around the globe, continues to steam ahead, a fact that has raised the possibility that the

Federal Reserve

will hike interest rates later this year. That possibility, in part, sent stocks tumbling last week.

Treasuries were firm this morning after falling for five straight sessions. The 30-year bond was up 10/32 to 98 27/32, yielding 5.33%.

On the

New York Stock Exchange

, decliners were beating advancers 1,356 to 1,191 on 202 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,610 to 1,555 on 290 million shares.

On the NYSE, 31 issues had set new 52-week lows while 10 had touched new highs. On the Nasdaq, 32 issues had set new highs while new lows totaled 24.

10:00 a.m.: Nasdaq Leads March Higher

After last week's beating, the tech-heavy

Nasdaq Composite Index

was leading the market higher to kick the week off and was up 1.7%.

The Nasdaq Comp was up 40 to 2414.

The

Dow Jones Industrial Average

was up 25 to 9329. The

S&P 500

was up 7 to 1247. The

Russell 2000

was up 3 to 415.

TheStreet.com Internet Sector

was down 2 to 531. Meanwhile,

TheStreet.com E-Commerce Index

was down fractionally at 105.

The 30-year Treasury bond was up 9/32 to 98 27/32, yielding 5.33%.

Most Up at Open -- NYSE

STMicroelectronics (STM) - Get Report, up 5 7/16 to 95 7/16

:

Merrill Lynch

upgraded STMicroelectronics to near-term accumulate from near-term neutral and upgraded the stock long-term buy from long-term accumulate.

Most Up at Open -- Nasdaq

Novellus Systems (NVLS) , up 4 1/4 to 70 7/8

: Merrill Lynch upgraded Novellus to near-term buy from near-term accumulate.

Most Down at Open -- NYSE

AMR (AMR) , down 1 15/16 to 58

:

American Airlines

, a unit of AMR, canceled about 90 flights on Saturday and upwards of 200 on Sunday, 9% of scheduled connections, as a result of an escalating dispute with its pilots union over the progress of its recent merger with

Reno Air

(RENO)

.

Most Down at Open -- Nasdaq

Siebert Financial (SIEB) - Get Report, down 3 3/4 to 31 3/8

.