Nasdaq, S&P Break Records as January Cruises to a Close

All of the major indices ended on the positive side, with big-cap tech stocks leading the charge.
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The major market indices surged, with both the

S&P 500

and

Nasdaq Composite Index

closing at record highs as the Comp cracked the 2500 barrier.

The S&P 500 jumped 14.27, or 1.1%, to 1279.64, just beating the old record close of 1275.09. The Nasdaq Comp advanced 28.53, or 1.1%, to 2505.87, beating yesterday's record close of 2477.34.

The

Dow Jones Industrial Average

gained 77.50, or 0.8%, to 9358.83. The

Russell 2000

advanced 3.24, or 0.8%, to 427.21.

TheStreet.com Internet Sector

index added 5.12, or 0.9%, to 557.52.

Stocks were heartened in part by news the economy expanded at a robust clip in the fourth quarter. The

Commerce Department

said

gross domestic product

in the fourth quarter surged 5.6%, sharply higher than the 4.4% growth rate economists had expected.

The 30-year Treasury bond was up 4/32 to 102 10/32, yielding 5.09%.

On the

New York Stock Exchange

, advancers beat decliners 1,681 to 1,331 on 911.7 million shares. On the

Nasdaq Stock Market

winners edged losers 2,378 to 1,843 on 1.048 billion shares.

On the NYSE, 95 issues set new 52-week highs while 81 touched new lows. On the Nasdaq, 124 issues set new highs while new lows totaled 41.

On the Big Board,

Service

(SRV) - Get Report

was most active, with 17.2 million shares changing hands. It was down 2 1/8, or 11.8%, to 15 7/8.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 34.7 million shares changing hands. It was up 5 13/16, or 6.2%, to 100.

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

.

2:58 p.m.: Stocks Stay Solid as Week's Home Stretch Begins

Stocks were near their session highs, shaking off a morning selloff after rising at the open on good news about the health of the U.S. economy.

The

Dow Jones Industrial Average

was up 83 to 9364.

IBM

(IBM) - Get Report

, up 3 5/8 to 182 5/16, was powering the blue-chip measure.

The

S&P 500

was up 12 to 1277. The

Russell 2000

was up 2 to 426. The

Nasdaq Composite Index

was up 22 to 2499.

TheStreet.com Internet Sector

index was up 4 to 556.

The

Commerce Department

said fourth-quarter

gross domestic product

jumped 5.6%, much more the 4.4% that economists had expected.

John Roque, senior analyst at

Arnhold & S. Bleichroeder

, said the market is OK, however, that doesn't mean he doesn't have some concerns.

One positive factor is the fact that the Latin American markets have been rallying recently despite all the negative news out of Brazil.

Today the

Bovespa

was up 2.3%.

On the flip side, one of the negatives in the market he mentioned was the fact that the

Nasdaq 100

"has gotten to levels that are pretty scary."

In a note to clients earlier this week, he likened the Nasdaq 100 to the Greek tale of Icarus, writing, that "while we consider ourselves momentum investors first and foremost, we can think of no better metaphor to describe the incredible and unsustainably strong momentum" of the Nasdaq 100.

The 30-year Treasury bond was down 3/32 to 102 3/32, yielding 5.11%.

On the

New York Stock Exchange

, advancers were beating decliners 1,512 to 1,405 on 712 million shares. On the

Nasdaq Stock Market

winners were edging losers 2,004 to 1,926 on 829 million shares.

On the NYSE, 80 issues had set new 52-week highs while 72 had touched new highs. On the Nasdaq, 113 issues had set new highs while new lows totaled 37.

On the Big Board,

Service

(SRV) - Get Report

was most active, with 15.2 million shares changing hands. It was down 2, or 11.1%, to 16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 29.1 million shares changing hands. It was up 5 5/16, or 5.6%, to 99 1/2.

1:49 p.m.: PC Warming Trend Keeps Stocks on the Upswing

Stocks were modestly higher this afternoon thanks in part to news of the U.S. economy's stellar fourth-quarter growth.

The

Dow Jones Industrial Average

was up 63 to 9344. The

S&P 500

was up 9 to 1274. The

Nasdaq Composite Index

was up 14 to 2491.

The

Russell 2000

was up 1 to 425.

TheStreet.com Internet Sector

index was up 2 to 554.

On the economic front, the

Commerce Department

said fourth-quarter

gross domestic product

jumped 5.6%, well above the 4.4% gain that economists expected.

The 30-year Treasury bond was off 4/32 at 102 2/32, yielding 5.12%.

On the

New York Stock Exchange

, decliners were beating advancers 1,416 to 1,412 on 570 million shares. On the

Nasdaq Stock Market

winners and losers were even at 1883 on 676 million shares.

On the NYSE, 71 issues had set new 52-week highs while 66 had touched new lows. On the Nasdaq, 102 issues had set new highs while new lows totaled 28.

Hardware stocks surged thanks in part to good news on PC shipments. Worldwide PC shipments jumped 15% in the fourth quarter to 27.3 million units, while total volume in 1998 fell just short of 90 million units, 12% ahead of 1997 levels, according to preliminary estimates from

International Data

of Farmingham, Mass.

Strength in the U.S. and Western Europe was partly offset by the impact on PC market growth because of economic slumps in Japan, the Asia-Pacific region and Eastern Europe.

Dell

(DELL) - Get Report

was up 5 1/8 to 99 1/4. It was most active on the Nasdaq, with 12.8 million shares changing hands.

The

Philadelphia Stock Exchange Computer Box Maker Index

was up 2.5%.

On the Big Board,

Service Corp.

(SRV) - Get Report

was most active with 13.1 million shares changing hands. It was down 2 1/8, or 11.8%, to 15 7/8.

12:48 p.m.: Midday Musings: Market's Gains Hold and Build at Midsession

11:58 a.m.: Reversing Their Reversal, Stocks Head Higher

Stocks were moving higher again, with certain segments of the technology sector turning in a particularly shining performance.

Among the major market gauges -- which have traded in a relatively narrow range -- the

Dow Jones Industrial Average

was up 58 to 9339. The

S&P 500

was up 6 to 1272. The

Nasdaq Composite Index

was up 18 to 2496. The

Russell 2000

was up 1 to 425.

TheStreet.com Internet Sector

index was up 9 to 561. Net portal

Yahoo!

(YHOO)

was a significant loser in the index. It was down 10 1/4 to 357 1/2.

Brokerage stocks were strong. The

American Stock Exchange Broker/Dealer Index

was up 2.9%. Also sporting solid gains were transportation stocks. The

Dow Jones Transportation Average

was up 3.4%.

The 30-year Treasury bond was down 4/32 to 102 2/32, yielding 5.12%.

On the economic front, the

Commerce Department

said fourth-quarter

gross domestic product

jumped 5.6%, well above the 4.4% that economists had expected.

Although stocks were higher, market breadth was still negative by a thin margin.

On the

New York Stock Exchange

, decliners were beating advancers 1,366 to 1,332 on 408 million shares. On the

Nasdaq Stock Market

losers were beating winners 1,761 to 1,697 on 482 million shares.

On the NYSE, 57 issues had set new 52-week lows while 53 had touched new highs. On the Nasdaq, 92 issues had set new highs while new lows totaled 22. On the Big Board, newcomer

Entercom Communications

(ETM) - Get Report

, a radio broadcaster, was most active, with 9.9 million shares changing hands. Its 13.6 million-share IPO was priced last night at $22.50 by

Credit Suisse First Boston

. It was up 9 1/16, or 40.3%, to 31 9/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 18.1 million shares changing hands. It was up 5 1/8, or 5.4%, to 99 5/16.

Tech Focus

Among the tech indices, the

Philadelphia Stock Exchange Computer Box Maker Index

was up 2.4%. The

Morgan Stanley High-Tech 35

was up 0.5%. The

Nasdaq 100

was up 0.5%. The

Philadelphia Stock Exchange Semiconductor Index

was up 2.6%.

A couple of stocks in the semiconductor index were upgraded today.

Credit Suisse First Boston

upgraded

LSI Logic

(LSI) - Get Report

to buy from hold. It was up 2 1/16, or 8.3%, to 25 13/16.

Meanwhile,

BancBoston Robertson Stephens

upgraded

Applied Materials

(AMAT) - Get Report

to strong buy from buy. The stock, which is also a semiconductor index component, was up 4 3/8, or 7.4%, to 63 3/8.

In the PC-maker world,

Goldman Sachs

upgraded

Hewlett-Packard

(HWP)

to market outperformer from market performer. It was up 2 7/8 to 76 3/4.

Compaq

(CPQ)

announced the formation of the

Compaq.com Business Division

which will be responsible for selling Compaq products and services to customers over the Web. Compaq was up 9/16 to 47 3/4.

In the Newsletters

Microsoft

(MSFT) - Get Report

has decided to stop delivering to German retail stores its personal finance software,

Money99

, until clears up problems that the German version is having with euro conversions, according to a report on

Computerworld's

Web site.

For those who have already bought the Money99 program, Microsoft GmbH will distribute free CD-ROMs when the revised version is available in April, the article said.

10:51 a.m.: About Face! Backward, March! Stocks Turn Tail and Retreat

News of steamy economic growth wasn't enough to keep the stock market's early upside momentum going as the major stock indices after rising early on slumped and are now all in the red.

The

Commerce Department

said fourth-quarter

gross domestic product

soared 5.6%, well above the 4.4% that economists had expected.

The

Dow Jones Industrial Average

was down 25 to 9256. The

S&P 500

was down 6 to 1259. The

Nasdaq Composite Index

was down 8 to 2469. The small-cap

Russell 2000

was down a fraction to 424.

TheStreet.com Internet Sector

index was down 4 to 549.

"It just kind of seems listless," said Jay Suskind, head of institutional equity trading at

Ryan Beck

, of the market this morning. He said he senses the market is a little tired and it has run out of a little steam.

He sees the Dow in a trading range of roughly 8900 to 9400.

The 30-year Treasury bond, after falling on the GDP news, reversed course and rose. Lately it was down again, just 1/32 to 102 5/32, yielding 5.11%

Market internals were negative. On the

New York Stock Exchange

, decliners were beating advancers 1,391 to 1,141 on 263 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,701 to 1,441 on 313 million shares.

On the NYSE, 49 issues had set new 52-week lows while 37 had touched new highs. On the Nasdaq, 74 issues had set new highs while new lows totaled 13.

Uniphase

(UNPH)

was a big gainer on the Nasdaq. The fiber-optic maker is

merging with its Canadian counterpart

JDS Fitel

in a $3.26 billion deal. Uniphase was up 10 5/8, or 13.3%, to 90 7/8.

The biggest loser in value terms on the Nasdaq is

eBay

(EBAY) - Get Report

, which was down 12 3/8 to 280 1/8. Of course a slump in the stock isn't surprising considering the eye-popping gains the online auctioneer has enjoyed this week.

On the Big Board, newcomer

Entercom Communications

(ETM) - Get Report

, a radio broadcaster, was most active, with 9 million shares changing hands. Its 13.6 million-share IPO was priced last night at $22.50 by

Credit Suisse First Boston

. It was up 8 1/4, or 36.7%, to 30 3/4.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 11.1 million shares changing hands. It was up 2 9/16 to 96 3/4.

On the mutual fund flow front, U.S. equity funds reported inflow of $1.1 billion for the week ended Wednesday, according to

AMG Data Services

.

9:47 a.m.: Stocks Move Modestly Higher in Early Trade

News the U.S. economy expanded at a blistering pace in the fourth quarter helped lift the market's major averages slightly, but Internet stocks slumped early on.

The

Commerce Department

said fourth-quarter

gross domestic product

soared 5.6%, well above the 4.4% that economists had expected.

The

Dow Jones Industrial Average

was up 26 to 9307. The

S&P 500

was up 2 to 1267. The

Nasdaq Composite Index

was up 8 to 2485. The

Russell 2000

was up 1 to 425.

TheStreet.com Internet Sector

index was down 5 to 548.

The strong news about the economy helped send Treasuries lower. The 30-year bond was down 11/32 to 101 27/32, yielding 5.13%.

Most Up at Open -- NYSE

Sony (SNE) - Get Report, up 2 1/8 to 73 1/2

.

Most Up at Open -- Nasdaq

Amgen (AMGN) - Get Report, up 5 15/16 to 125 1/2

: The company yesterday posted fourth-quarter earnings of 90 cents a share, 6 cents ahead of the

First Call

25-analyst estimate and above the year-ago 67 cents, and the company set a 2-for-1 stock split.

Most Down at Open -- NYSE

Eli Lilly (LLY) - Get Report, down 1 7/8 to 90 3/8

.

Most Down at Open -- Nasdaq

Yahoo! (YHOO) , down 7 3/4 to 360

.