S&P 500 Leads on the Downside

Meanwhile, small-caps continue to rise.
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Small-caps continued to pace the market while the big-cap

S&P 500

was the biggest loser on the downside.

The

Russell 2000

was up 4, or 1%, to 416. The

S&P 500

was down 13 to 1345. The

Dow Jones Industrial Average

was down 11 to 10,329.

The

Nasdaq Composite Index

was down 18 to 2580.

TheStreet.com Internet Sector

index was down 6 to 785.

TheStreet.com E-Commerce Index

was up 7 to 143.

The 30-year Treasury bond was down 23/32 to 96 12/32, yielding 5.50%.

On the

New York Stock Exchange

, advancers were beating decliners 1,532 to 1,384 on 557 million shares. On the

Nasdaq Stock Market

, winners were beating losers 2,036 to 1,803 on 909 million shares.

On the NYSE, 96 issues had set new 52-week highs while 41 had touched new lows. On the Nasdaq, 166 issues had set new highs while new lows totaled 74.

On the Big Board,

Compaq

(CPQ)

was most active, with 37 million shares changing hands. It was down 5/16 to 23 3/4.

On the Nasdaq,

Intel

(INTC) - Get Report

was most active, with 22 million shares changing hands. It was down 1 1/16 to 60 1/8. Intel is slated to report earnings after the close.

TheStreet.com

wrote about Intel in a story

this morning.

Sector Focus: Forest and Paper Products

Dow component

International Paper

(IP) - Get Report

posted earnings of 14 cents a share, outstripping the

First Call

12-analyst consensus estimate of 5 cents a share, but down from the year-ago 25 cents a share. International Paper was up 2 1/4 to 48 5/8.

The drop in earnings compared to the year-ago period was primarily due to sharply lower paper prices, the Purchase, N.Y.-based company said.

Meanwhile,

Weyerhaeuser

(WY) - Get Report

posted first-quarter earnings before special charges of 51 cents a share, beating the 16-analyst estimate of 36 cents. Weyerhaeuser was up 1 1/8 to 63 1/4. It had hit a 52-week intraday high earlier in the session when it peaked at 63 7/8.

The

Philadelphia Stock Exchange Forest & Paper Products Index

was up 2%.

1:02 p.m.: Midday Musings: Market Traces a Rocky Course but Broadens Out

12:06 p.m.: Stocks Mostly Higher After Monday's Rally

One swallow doesn't make the spring, but who cares?

As impressive as yesterday's rally was, bad news from

Compaq

(CPQ)

and all, today's action has been equally impressive. And not because of what the indices are doing -- most are higher -- but because of what's going on beneath the surface of the market.

Indeed to say that the

Dow Jones Industrial Average

was up 52 to 10,392, while the broader big-cap average, the

S&P 500

was down 4 to 1355, really isn't saying all that much. But consider: While breadth within the

S&P 500

has been slightly negative most of the day, advancers have been beating decliners 2 to 3 on the

New York Stock Exchange

. For once, it is not just the biggest stocks that are moving here -- the back benchers are having a day in the sun.

From a technician's standpoint, it's a lovely time to be in stocks -- at least according to Bob Dickey, managing director of technical analysis at

Dain Rauscher Wessels

. "This market is as much fun as I've seen in a long time," said Dickey. "I'll tell you, things are really rolling here -- the best thing about what we've been seeing the last few days is the strength in small-caps" as opposed to just Dow-type stocks.

Dickey considers this the speculative phase that one sees toward the end of a bull market -- which is not a recommendation to get out. "This is the most dramatic and profitable part of a bull market -- the speculative tail at the end of it," he said. "I'm still talking to all kinds of people here that are talking about the market topping out, but heck, I don't think so.

"It's nearly impossible to call the top until afterwards. For now you've got to love it. It takes guts, though. You've got to have guts."

The

Nasdaq Composite

was up 6 to 2605 and the small-cap

Russell 2000

was up 6 to 418. Internet stocks were again higher:

TheStreet.com Internet Sector Index

was up 3 794.

Tech Focus

The Nasdaq's strength was surprising considering that it's five biggest issues --

Microsoft

(MSFT) - Get Report

,

Intel

(INTC) - Get Report

,

Cisco

(CSCO) - Get Report

,

WorldCom

(WCOM)

and

Dell

(DELL) - Get Report

-- were all lower. Investors in big-line tech are still smarting from Compaq, and worrying about what Intel's earnings, set to get announced after the close, are going to look like. Meanwhile, other four-letter issues -- especially ones with .com at the end of their names -- are romping.

--

Justin Lahart

10:59 a.m.: Market Modestly Higher as Eyes Turn to Intel Earnings Release

Wall Street's rally yesterday, in the face of

Compaq's

(CPQ)

announcement that it would fall short, has lent strength to the market today, but there's still enough fear out there that the Street isn't ready to run stocks much higher. Tonight will go a long way toward determining whether those fears are well founded or baseless:

Intel

(INTC) - Get Report

announces its first quarter after the close.

The big chipmaker is seen as a sort of nexus for tech stocks -- you know how it's doing and you know how the PC makers are doing and you know how component makers are doing and so on. If Compaq's problems really are Compaq specific, than that should be reflected in Intel's numbers and what it says about them in its conference call. The company is expected to earn a split-adjusted 55 cents a share, according to

First Call

.

The

Dow Jones Industrial Average

was lately up 51 to 10,391, while the broader big-cap average, the

S&P 500

was up a more muted 1 to 1359.

"The broader market is not having quite as good a day today, but after the run they've had, it's not surprising they've had a bit of a break," said Jim Benning, a trader at

BT Brokerage

. Still, Benning sees little potential downside. "Every time they sell off a little bit it draws in buyers. I'd be surprised to see the market sell off to any significant degree here."

The

Nasdaq Composite

was up 29 to 2628 and the small-cap

Russell 2000

was up 7 to 420. Internet stocks were again on a tear;

TheStreet.com Internet Sector Index

was up 28, or 4%, to 818.

--

Justin Lahart

9:59 a.m.: Rally in Tech Issues Boosts Stocks

Technology stocks were surging early on after sitting out

yesterday's rally for the most part, as Internet stocks were flying again.

The

Dow Jones Industrial Average

was up 32 to 10,372. The

S&P 500

was up 3 to 1361. The

Nasdaq Composite Index

was up 25 to 2624. The

Russell 2000

was up 5 to 418.

TheStreet.com Internet Sector

index was up 26 to 817.

TheStreet.com E-Commerce Index

was up 8 to 144.

A host of earnings results were released this morning, as companies on balance reported in-line or better-than-expected numbers.

The 30-year Treasury bond was down 3/32 to 96 31/32, yielding 5.46%.

A couple of key economic reports were released this morning. The Labor Department reported the overall

Consumer Price Index

rose 0.2% in March, while excluding food and energy prices, it rose 0.1%, less than expected by the

Reuters

consensus forecast of economists.

Meanwhile, the

Commerce Department

reported

retail sales

in March rose 0.2%, while excluding autos, sales rose 0.5%.

On the heels of strong earnings reports from

Merrill Lynch

(MER)

and

PaineWebber

(PWJ)

boosted the brokerage sector. The

American Stock Exchange Broker/Dealer Index

was up 8%.

Most Up at Open -- NYSE

National Discount Brokers (NDB) , up 7 5/16 to 62 5/8

.

Most Up at Open -- Nasdaq

Net.B@nk (NTBK) , up 26 1/2 to 185

: The company set a 3-for-1 stock split.

Most Down at Open -- NYSE

General Electric (GE) - Get Report, down 2 1/2 to 114

.

Most Down at Open -- Nasdaq

SkyMall (SKYM) , down 6 3/8 to 16 3/4

: The company yesterday said it expects to post revenues of $13 million in the first quarter, down from the $13.2 million in the year-ago period and it expects to post a loss of between $1.00 to $1.20 a share in 1999.

--

Brian Louis