S&P, Nasdaq Close at Record Highs

All the major indices closed in the black despite a tumble in Internet issues
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The

S&P 500

and

Nasdaq Composite Index

closed at record highs while the blue-chip

Dow Jones Industrial Average

boasted solid gains and closed above the 9300 level for the first time since Nov. 27.

The S&P 500 surged 16.28, or 1.3%, to 1241.77, beating the old record close of 1228.54. The Dow rose 94.23, or 1%, to 9320.98. On Nov. 27 the Dow closed at 9333.08. The Dow's all-time closing high is 9374.27, which was set on Nov. 23.

Meanwhile, the tech-heavy

Nasdaq Composite Index

rose -- barely. It ended up 0.88, to 2181.18, just beating yesterday's record close of 2180.30. The small-cap

Russell 2000

advanced 2.05, or 0.5%, to 410.34.

Profit-taking was blamed for the drop in Internet stocks after yesterday's rally.

TheStreet.com Internet Sector

index dropped 14.09, or 3.1%, to 435.73.

The 30-year Treasury bond was lately up 22/32 to 102 1/32, yielding 5.12%.

On the

New York Stock Exchange

, advancers beat decliners 1,752 to 1,233 on 588 million shares. On the

Nasdaq Stock Market

, winners beat losers 2,171 to 2,007 on 915 million shares.

On the NYSE, 123 issues set new 52-week highs while 71 touched new lows. On the Nasdaq, 122 issues set new highs while new lows totaled 119.

On the Big Board,

America Online

(AOL)

was most active, with 18.2 million shares changing hands. It slumped 3 3/8 to 153 7/8.

On the Nasdaq,

ValueVision International

(VVTV)

was most active with 29.8 million shares changing hands. It was up 5 1/8, or 82.8%, to 11 3/8.

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

.

2:57 p.m.: S&P on Track for Record Close

The

S&P 500

was flying with the blue-chip

Dow Jones Industrial Average

following closely behind as all of the market's major barometers were in positive territory, while Internet stocks languished in the mud.

The S&P 500 was up 15 to 1240, on pace to close at another record high. Its all-time record close is 1228.54. The Dow was up 92 to 9319. Its closing all-time is 9374.27. The

Nasdaq Composite Index

was up 2 to 2182. The small-cap

Russell 2000

was up 1 to 409.

The market's major gauges were all lately trading in the neighborhood of their session highs.

TheStreet.com Internet Sector

index was down 13 to 437.

The 30-year Treasury bond was lately down 13/32 to 100 30/32, yielding 5.19%.

Despite the solid gains, volume has been light for the most part, traders said. Activity overall in stocks has been slow, said Louis Todd, head of equities trading at

J.C. Bradford

.

As for the weakness in the Internet stocks, Todd said they have fallen victim to profit-taking today after enjoying sharp gains yesterday.

Traders have said lately window dressing will be a big influence in the market the rest of the week.

On the

New York Stock Exchange

, advancers were beating decliners 1,674 to 1,292 on 444 million shares. On the

Nasdaq Stock Market

, losers were beating winners 2,043 to 2,015 on 706 million shares.

On the NYSE, 116 issues had set new 52-week highs while 64 had touched new lows. On the Nasdaq, 101 issues had set new highs while new lows totaled 106.

Retail stocks were higher. The

S&P Retail Index

was up 3%.

Most active on the Big Board was

America Online

(AOL)

, with 15 million shares changing hands. It was down 3 5/8 to 153 5/8.

On the Nasdaq,

ValueVision International

(VVTV)

was most active with 26 million shares changing hands. It was up 4 5/16, or 71%, to 10 5/8.

1:55 p.m.: Dow, S&P Post Solid Gains

The

S&P 500

and the

Dow Jones Industrial Average

were enjoying solid gains, with the S&P 500 lately in record territory, while the rest of the market's major gauges lagged behind.

The S&P 500 was up 13 to 1239. Its closing record high is 1228.54. The Dow was up 78 to 9305. The tech-heavy

Nasdaq Composite Index

was up 2 to 2182, while the

Russell 2000

was up 1 to 409.

Internet stocks were getting beaten up after yesterday's rally. The

TheStreet.com Internet Sector

index was down 13 to 436.

The 30-year Treasury bond was lately up 2/32 to 101 17/32, yielding 5.15%.

On the

New York Stock Exchange

, advancers were beating decliners 1,621 to 1,278 on 363 million shares. On the

Nasdaq Stock Market

, losers were beating winners 2,023 to 1,921 on 589 million shares.

On the NYSE, 104 issues had set new 52-week highs while 57 had touched new lows. On the Nasdaq, 91 issues had set new highs while new lows totaled 96.

Most active on the Big Board was

America Online

(AOL)

, with 13 million shares changing hands. It was down 4 5/16 to 152 15/16.

On the Nasdaq,

ValueVision International

(VVTV)

was most active with 23 million shares changing hands. It was up 4 1/4, or 69%, to 10 1/2.

Sector Focus: Online Brokers

A couple of the notable names in the online brokerage world were surging again today in the wake of yesterday's rally in the sector.

Yesterday

E*Trade

(EGRP)

soared after it said its

Destination E*Trade

financial services Web site attracted more than 500,000 members since the inauguration of the site in September. Today, the stock was up 3 9/16, or 6%, to 60 1/8.

Ameritrade

(AMTD) - Get Report

was lately up 2 11/16, or 8%, to 36 1/8.

1:04 p.m.: Midday Musings: S&P 500 on Pace for Record as Stocks Firm

12:05 p.m.: Stocks Climb in Thin Volume

After hitting a bit of a rough patch early on, the major indices are taking back ground in late-morning trading -- not that there were many people around to watch it happen.

On the Tuesday after Christmas last year, just over 500 million shares changed hands on the

New York Stock Exchange

. Today, it looks like it will be far fewer than that.

"It looks like we're through for the year," said Ned Collins, executive vice president of U.S. stocks at

Daiwa Securities America

. "Most of our clients are going to sit on their hands until the end of the year. It's been a great year and everyone really wants it to be over with."

The

Dow Jones Industrial Average

was up 32 to 9259 while the

S&P 500

was up 5 to 1231. Tech issues continued to struggle. The

Nasdaq Composite

index was off 6 to 2175.

The 30-year Treasury bond was lately down 4/32 to 101 11/32, yielding 5.16%.

New York Stock Exchange

advancers were leading decliners 1,525 to 1,231 on 229 million shares. On the

Nasdaq Stock Market

, losers were outpacing winners 1,960 to 1,705 on 390 million shares.

On the NYSE, 76 issues had set new 52-week highs while 41 had reached new lows. On the Nasdaq, 73 issues had set new highs while 68 issues had stooped to new lows.

Tech Focus

Hot-house flowers, er, Internet stocks were wilting a bit.

TheStreet.com Internet Sector

index was down 10 to 440. But while the bluer-chip Internet stocks like

Amazon.com

(AMZN) - Get Report

,

America Online

(AOL)

and

Yahoo

(YHOO)

were down, some tertiary retailers continued to hold up well:

Active Apparel

(AAGP)

was up 6 11/16, or 58%, to 18 1/2, while

SkyMall

(SKYM)

was up 4 5/8, or 13%, to 40 1/8.

11:00 a.m.: Tech Sector Takes a Hit

The promise of

yesterday's negative market breadth is coming to fruition -- it remains a downside day on Wall Street.

The major indices, which finished mainly higher yesterday, have been mired in the muck so far this session. Internet issues and other tech stocks, yesterday's leaders, are today's downside pacesetters, with the

Nasdaq Composite Index

off 13 to 2167 and

TheStreet.com Internet Sector

index down 8 to 442.

The

Dow Jones Industrial Average

was down 16 to 9211, with

IBM

(IBM) - Get Report

leading the losers. The

S&P 500

was down 1 to 1224 and the

Russell 2000

was down 1 to 407.

Although the Net sector is broadly lower, the quest for a new

K-tel

(KTEL)

continues apace. Today's candidate:

Sunglass Hut

(RAYS)

, lately up 1, or 15%, to 7 1/4. The shades retailer, which hasn't put out a release today, is benefiting from scuttlebutt that it may be poised to announce an Internet initiative.

The 30-year Treasury bond was lately down 4/32 to 101 11/32, yielding 5.16%.

New York Stock Exchange

decliners were leading advancers 1,311 to 1,229 on 138 million shares. On the

Nasdaq Stock Market

, losers were outpacing winners 1,871 to 1,410 on 251 million shares.

On the NYSE, 57 issues had set new 52-week highs while 32 had reached new lows. On the Nasdaq, 57 issues had set new highs while 56 issues had stooped to new lows.

10:05 a.m.: Stocks Slip at Open

Stocks opened slightly lower as Internet stocks were suffering early on in the wake of yesterday's sharp cyberspace stock rally.

TheStreet.com Internet Sector

index was down 10 to 439.

Meanwhile, the

Dow Jones Industrial Average

was down 21 to 9207. The

S&P 500

was down 1 to 1224. The

Nasdaq Composite Index

was down 4 to 2177. The

Russell 2000

was down 1 to 407.

The 30-year Treasury bond was lately up 1/32 to 101 13/32, yielding 5.16%.

Most Up at Open -- NYSE

Xerox (XRX) - Get Report, up 2 1/4 to 117 1/2

.

Most Up at Open -- Nasdaq

SkyMall (SKYM) , up 8 7/16 to 44

.

Most Down at Open -- NYSE

Halliburton (HAL) - Get Report, down 2 13/16 to 30 1/8

: The oil services company yesterday said it plans to take a fourth-quarter after-tax charge of $24 million, or 5 cents a share, to cover 2,750 additional job cuts in its energy services group. Halliburton expects to report net fourth-quarter earnings of 14 cents to 16 cents a share, including the charge and costs related to project losses. The current 22-analyst

First Call

consensus estimate calls for operating earnings of 36 cents a share.

Most Down at Open -- Nasdaq

Adac Laboratories (ADAC) , down 10 to 17 1/8

: The company will restate financial results for fiscal years 1996, 1997 and 1998 amid an extensive ongoing review of accounting principles by the company and

PricewaterhouseCoopers

. Adac said the adjustments will have a material adverse impact on its fiscal 1996 and 1997 financial results. The adjustments, however, aren't expected to have a material impact on its previously released fiscal 1998 revenue, though the effect on revenue in individual quarters may be material, Adac said. Net income for 1998 may be somewhat lower or higher than previously reported, depending on the outcome of the review. Adac said it believes the accounting changes will not have a material impact on its future business prospects.