Stocks were slightly higher overall, while the

Dow Jones Transportation Average

was soaring, led by


(UAL) - Get Report


UAL, parent of

United Airlines

, said this morning it expects first-quarter earnings and full-year earnings to surpass Wall Street estimates. The news sent its stock soaring, up 4 9/16, or 7%, to 71 5/8.

UAL expects first-quarter earnings to come in around $1.35 a share, far above the

First Call

10-analyst estimate of $1.12. For the full year of 1999, UAL expects to earn between $10 to $12 a share, well above the current 11-analyst consensus of $9.12 a share.

The Dow transportation average was up 2%.

Elsewhere, the

Dow Jones Industrial Average

was up 35 to 9912. The

S&P 500

up 7 to 1302. The

Nasdaq Composite Index

was up 30 to 2412. The small-cap

Russell 2000

up 2 to 400. Internet Sector

index was up 23 to 591. E-Commerce Index

was up 3 to 109.

John Roque, senior analyst at

Arnhold & S. Bleichroeder

, said that over the short term he expects the market to consolidate here, adding that the 9700 level on the Dow is the lower level of consolidation.

In a note this morning, Roque pointed out that several floors of support for the market indicate downside is limited. Among some of the floors that are being created: continued improvement in Japan, the extremely positive response in German equities on the news of the resignation of

Oskar Lafontaine

, the German finance minister, and better action in T-bonds and in the

Philadelphia Stock Exchange Utility Average


Roque said the best areas in the market here are drug stocks, gaming, and the food retailers.

Meanwhile, Roque is shunning technology right now. Roque wrote: "It's much too soon to talk about the group being at a bottom given the way


(ORCL) - Get Report

responded to the bad news. When the sector starts absorbing bad news then we can talk about the group being at a bottom."

Oracle tumbled sharply in trading on Friday on disappointment with revenue growth.

The 30-year Treasury bond was down 1/32 to 95 29/32, yielding 5.54%.

On the

New York Stock Exchange

, advancers were beating decliners 1,342 to 1,169 on 211 million shares. On the

Nasdaq Stock Market

, winners were beating losers 1,625 to 1,513 on 262 million shares.

On the NYSE, 36 issues had set new 52-week highs while 35 had touched new lows. On the Nasdaq, 47 issues had set new highs while new lows totaled 39.

On the Big Board,

Rite Aid

(RAD) - Get Report

was most active, with 9 million shares changing hands. It was up 1 13/16 to 24 3/8.

On the Nasdaq, Oracle was most active with 14 million shares changing hands. It was up 1 5/16 to 29 15/16.

9:55 a.m.: Stocks Open Little Changed Amid Merger News

Stocks opened little changed amid merger news, including a $16 billion banking deal.


Dow Jones Industrial Average

was down 4 to 9872. The

S&P 500

was down 1 to 1294.


Nasdaq Composite Index

was up 4 to 2386. The

Russell 2000

was up 1 to 399. Internet Sector

was up 8 to 576. E-Commerce Index

was up 1 to 106.

The 30-year Treasury bond was up 2/32 to 95 31/32, yielding 5.53x%.

On the merger-and-acquisition front,


(FLT) - Get Report

agreed to buy



for $16 billion in stock.



(DD) - Get Report

, which owns 20% of

Pioneer Hi-Bred

(PHB) - Get Report

, is buying the rest of the company for $40 a share in cash and stock. Pioneer closed Friday at 34 5/16. The deal is valued at $7.7 billion.

Most Up at Open -- NYSE

EMC (EMC) , up 2 1/2 to 114 3/4


Most Up at Open -- Nasdaq

CMGI (CMGI) , up 13 to 177

: CMGI will become a component of the

Nasdaq 100

effective at the close of trading Wednesday. CMGI will replace

Netscape Communications


, which is being acquired by

America Online



Most Down at Open -- NYSE

Limited (LTD) , down 1 5/16 to 36 1/4


Most Down at Open -- Nasdaq

Chancellor Media (AMFM) , down 2 3/8 to 42

: The company said it was scuttling its proposed acquisition of

LIN Television

and announced big management changes and announced plans for a new Internet division.