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Stocks Close Mixed in Choppy Trading

The Russell was the biggest loser of the day. On the flip side, the Dow and S&P closed in the black.

The major market barometers ended mixed in a choppy session, while the small-cap

Russell 2000

fell sharply and Treasuries tumbled.

The Russell 2000 slumped 5.17, or 1.3%, to 397.95.

TST Recommends

The

Dow Jones Industrial Average

gained 44.28, or 0.5%, to 9177.31. The

S&P 500

advanced 7.40, or 0.6%, to 1223.55.

The

Nasdaq Composite Index

dropped 1.28, or 0.1%, to 2309.51.

Internet stocks were mixed.

TheStreet.com Internet Sector

gave up 5.36, or 1.2%, to 450.90.

TheStreet.com E-Commerce Index

rose 1.04, or 1.1%, to 94.14.

The 30-year Treasury bond resumed its losing ways. It fell 20/32 to 98 17/32, yielding 5.348%.

On the

New York Stock Exchange

, decliners beat advancers 1,822 to 1,170 on 723 million shares. On the

Nasdaq Stock Market

losers beat winners 2,375 to 1,577 on 914 million shares.

On the NYSE, 92 issues set new 52-week lows while 17 touched new highs. On the Nasdaq, 65 issues set new lows while new highs totaled 15.

On the Big Board,

Philip Morris

(MO) - Get Report

was most active, with 24.9 million shares changing hands. It was down 3 15/16, or 8.7%, to 41 7/16. The company's stock fell on news, reported in

The Los Angeles Times

, that a San Francisco jury yesterday found Philip Morris liable for the lung cancer of a longtime smoker.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 36.8 million shares changing hands. It was down 9/16 to 97.

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

.

3:07 p.m.: Stocks Remain on Both Sides of Unchanged

Stocks slid into the final hour of trading narrowly mixed with the small-cap

Russell 2000

down 1%.

The small-cap Russell 2000 was down 5 to 398.

Internet stocks, which have been crushed lately, were down again today.

TheStreet.com Internet Sector

index was down 7 to 449.

TheStreet.com E-Commerce Index

was down 1 to 92.

Elsewhere, the

Dow Jones Industrial Average

was up 3 to 9136.

The

S&P 500

was up 3 to 1219. The

Nasdaq Composite Index

was down 6 to 2305.

John Roque, senior analyst at

Arnhold & S. Bleichroeder

, said he thinks this correction will take some time to play out. Right now, Roque said currently he's in the "correction-not-yet-bearish camp."

On the plus side today, the bank stocks have been doing relatively better, Roque said, citing the solid performance of

BankAmerica

(BAC) - Get Report

,

J.P. Morgan

(JPM) - Get Report

,

Citigroup

(C) - Get Report

and

Chase

(CMB)

, which are all on the plus side.

The 30-year Treasury bond was down 10/32 to 98 27/32, yielding 5.33%, off its lows, in the wake of today's auction.

Key for stocks going forward is the state of the bond market, Roque said.

On the

New York Stock Exchange

, decliners were beating advancers 1,878 to 1,075 on 570 million shares. On the

Nasdaq Stock Market

losers were beating winners 2,358 to 1,514 on 744 million shares.

On the NYSE, 83 issues had set new 52-week lows while 14 had touched new highs. On the Nasdaq, 57 issues had set new lows while new highs totaled 12.

On the Big Board,

Philip Morris

(MO) - Get Report

was most active, with 20 million shares changing hands. It was down 4 1/4, or 9%, to 41 3/16. The company's stock fell on news, reported in

The Los Angeles Times

, that a San Francisco jury yesterday found Philip Morris liable for the lung cancer of a longtime smoker.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 30 million shares changing hands. It was up 1 1/16 to 98 15/16.

1:54 p.m.: Stocks Remain Near Unchanged

The long-lagging small-cap sector was posting the largest percentage loss among the major market averages as stocks overall were narrowly mixed.

The

Russell 2000

was down 5, or 1%, to 398. The Russell is currently down roughly 19% from its all-time high, which it reached last April.

The

Dow Jones Industrial Average

was down 4 to 9129. The

S&P 500

was up 1 to 1217.

The

Nasdaq Composite Index

was 4 to 2307.

TheStreet.com Internet Sector

index was down 7 to 449.

TheStreet.com E-Commerce Index

was down 1 to 92.

Turning to Treasuries, the 30-year bond was taking a beating. It was down 19/32 to 98 18/32, yielding 5.35%.

Market breadth was lousy.

On the

New York Stock Exchange

, decliners were beating advancers 1,835 to 1,006 on 458 million shares. On the

Nasdaq Stock Market

losers were beating winners 2,259 to 1,451 on 613 million shares.

On the NYSE, 69 issues had set new 52-week lows while 10 had touched new highs. On the Nasdaq, 50 issues had set new lows while new highs totaled 9.

On the Big Board,

Philip Morris

(MO) - Get Report

was most active, with 17 million shares changing hands. It was down 3 5/8, or 8%, to 41 3/4. More on Philip Morris below.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 26 million shares changing hands. It was up 15/16 to 98 11/16.

One of the biggest losers on the Nasdaq today has been

EntreMed

(ENMD)

, which was down 11 13/16, or 48%, to 12 3/4, in the wake of the news

yesterday that

Bristol-Myers Squibb

(BMY) - Get Report

will no longer develop EntreMed's experimental anticancer drug, angiostatin, as part of the companies' research agreement. Bristol-Myers -- which said today it was halting clinical studies of Lobucavir, a herpes and hepatitis drug -- was down 3/8 to 122 1/8.

Sector Focus: Tobacco

News that a San Francisco jury yesterday found Philip Morris liable for the lung cancer of a longtime smoker sent tobacco company stocks lower.

The Los Angeles Times

reported today that the jury awarded Patricia Henley $1.5 million in compensatory damages, the first victory for a plaintiff in a California smoking and health case. The

Times

article said the tobacco industry's only three previous losses in suits by individual smokers were eventually set aside.

The $1.5 million compensatory damage award may not be the end to the pain for Philip Morris. Today the jury begins deliberations on Henley's request for punitive damages, the newspaper reported.

The

American Stock Exchange Tobacco Index

was down 3.5%.

RJR Nabisco

(RN)

fell 15/16 to 27 3/4, while

Loews

(LTR)

dropped 2 11/16 to 81 5/8.

1:15 p.m.: Midday Musings: Ragged Session Wrenches Stocks Around

12:00 p.m.: Stocks Turn Narrowly Mixed

The major market averages have shrugged off a squishy start to trade near unchanged while

American Airlines'

battle with its pilots' union has heated up.

The

Dow Jones Industrial Average

was down 2 to 9131. The

S&P 500

was up 2 to 1218. The

Nasdaq Composite Index

was up 2 to 2313. The

Russell 2000

was down 4 to 399.

American Airlines, a division of

AMR

(AMR)

, today asked a federal judge for a temporary restraining order to end an

Allied Pilots Association

"sickout" that has caused the airline to cancel hundreds of flights. The tiff with the pilots' union is centered on how American will integrate 300 pilots from

Reno Air

, which it bought in December, into the 9,200-pilot American system.

Some 900 flights were canceled today, American said. AMR was down 1/16 to 55 7/16.

After opening sharply lower,

TheStreet.com Internet Sector

index and

TheStreet.com E-Commerce Index

rallied and rose into positive territory, but have since faded back into the red.

TheStreet.com Internet Sector

index was down 7 to 449, while the e-commerce index was off 2 to 92.

In the Treasury market, the 30-year bond was down 6/32 to 98 31/32, yielding 5.32%. (For more on the fixed-income market, see today's early

Bond Focus.)

On the NYSE, decliners were beating advancers 1,688 to 1,001 on 305 million shares. On the Nasdaq losers were beating winners 1,985 to 1,405 on 431 million shares.

On the NYSE, 46 issues had set new 52-week lows while 6 had touched new highs. On the Nasdaq, 37 issues had set new lows while new highs totaled 8.

On the Big Board,

America Online

(AOL)

was most active, with 9 million shares changing hands. It was down 1/16 to 147 7/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, on volume of 22 million. It was unchanged at 97 3/4.

Tech Focus

Among some of the tech indices, the

Philadelphia Stock Exchange Semiconductor Index

was up 1%, the

Philadelphia Stock Exchange Computer Box Maker Index

was up 1%. The

Morgan Stanley High-Tech 35

was up fractionally. The

Nasdaq 100

was up 1%.

The biggest losers in the Internet arena today include

Lycos

(LCOS)

-- which continued to fall today in the wake of its announced deal with

USA Networks

(USAI) - Get Report

-- and

Go2Net

(GNET)

. Lycos was down 11 1/4, or 12%, to 83, while Go2Net fell 11 1/8, or 11%, to 87 7/8.

TheStreet.com

has written

several

stories about the deal.

In the news,

Shop At Home

(SATH)

said it is working with

Oracle

(ORCL) - Get Report

and

iXL

to launch collectibles.com "as the premier online community for collectible shopping and information." Launch is targeted for the third quarter. Shares of Shop At Home tumbled 22%, while Oracle was off 1/2 to 54 3/16.

Meanwhile,

Goldman Sachs' 13th Annual Technology Investment Symposium

is in its second day. To view TheStreet.com's stories on the conference, click

here.

11:01 a.m.: Stocks Head into Positive Territory

After starting the session down sharply, Internet stocks have bounced back and are well off their lows while the Nasdaq Composite Index has stormed into positive territory and was lately up 1.1%. However, market breadth was poor.

Early on, Internet stocks led the market's tumble. Cyberspace issues were led on the downside by

Lycos

(LCOS)

, which continued to fall after yesterday's huge selloff.

On Tuesday, market participants dumped Lycos in the wake of the announcement of its

deal with

USA Networks

(USAI) - Get Report

.

TheStreet.com

has written

several

stories about the deal.

This morning several Wall Street analysts downgraded the stock. Lycos was down 11 7/8 to 82 1/4, but well off its intraday low of 77.

TheStreet.com Internet Sector

index was down fractionally at 456.

TheStreet.com E-Commerce Index

was up fractionally at 94.

The

Nasdaq Composite Index

was up 25 to 2336.

As for the rest of the market, the

Dow Jones Industrial Average

was up 45 to 9178.

Looking ahead, Jay Suskind, head of institutional equity trading at

Ryan Beck

, said he thinks the Dow is still in a trading range of between 8800 and 9300.

He called the recent Internet stock selloff "healthy."

The

S&P 500

was up 10 to 1226. The

Russell 2000

was down 1 to 402.

After starting out weaker, people stepped in and pulled a little bit of a buy-the-dip maneuver, particularly in the tech arena which helped push the Nasdaq Comp into positive territory.

The 30-year Treasury bond was down 6/32 to 98 31/32, yielding 5.32%.

On the

New York Stock Exchange

, decliners were beating advancers 1,391 to 1,088 on 212 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,669 to 1,404 on 305 million shares.

On the NYSE, 36 issues had set new 52-week lows while 3 had touched new highs. On the Nasdaq, 28 issues had set new lows while new highs totaled 8.

On the NYSE,

Laboratory Corp. of America

(LH) - Get Report

was most active with 7.1 million shares changing hands. It was up 3/8, or 20.7%, to 2 3/16, on an upgrade from

Credit Suisse First Boston

. CS First Boston raised its rating to buy from hold.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active on volume of 15.7 million shares. It was up 2 1/2 to 100 5/16.

10:02 a.m.: Stocks Drop at Open

Stocks were slightly lower as the tumble in Internet stocks was continuing, while

American Airlines

said it expects 906 flight cancellations today. American is a unit of

AMR

(AMR)

. The airline said there were 827 cancellations on Tuesday. AMR was down xx to xx.

The

Dow Jones Industrial Average

was down 29 to 9104. The

S&P 500

was down 4 to 1212. The

Nasdaq Composite Index

was down 15 to 2296. The

Russell 2000

was down 2 to 401.

TheStreet.com Internet Sector

was down 17 to 439. Meanwhile,

TheStreet.com E-Commerce Index

was down 4 to 89.

The 30-year Treasury bond was up 4/32 to 99 9/32, yielding 5.30%.

Most Up at Open -- NYSE

Hewlett Packard (HWP) , up 1 7/8 to 72 1/2

:

Most Up at Open -- Nasdaq

Concord EFS (CEFT) , up 3 to 28 1/2

.

Most Down at Open -- NYSE

Computer Associates (CA) - Get Report, down 1 5/8 to 42 3/8

.

Most Down at Open -- Nasdaq

EntreMed (ENMD) , down 11 1/8 to 13 3/8

:

Bristol-Myers Squibb

(BMY) - Get Report

said

Tuesday it will no longer develop EntreMed's experimental anticancer drug, angiostatin, as part of the companies' research agreement.