Stocks Close Modestly Mixed Despite Mild Rise in Bonds

Friday, the stock market didn't pay attention to a flagging bond market. Today it didn't pay attention to a bond market that was rising.

At least that's what it looked like at first blush. Though the Treasury market rose on a couple of

coupon passes, the major averages didn't do so hot, posting narrow losses.

But this ignores good market internals. On the

New York Stock Exchange

, advancers beat decliners 1,724 to 1,287 on 767 million shares. On the

Nasdaq Stock Market

, winners beat losers 2,195 to 1,854 on 828 million shares. On the NYSE, 109 issues set new 52-week highs while only 21 touched new lows. On the Nasdaq, 90 issues set new highs while new lows totaled 37.

The

Dow Jones Industrial Average

lost 24.34 to close at 11,007.25, while the

S&P 500

closed at 1340.30, down 4.70.

Aside from the two majors, things looked good. The

Nasdaq Composite

finished up 22.77 to 2526.39, as buyers came into PC stocks and tech.

The

Russell 2000

tacked on 5.74 to close at 441.85.

TheStreet.com Internet Sector

index climbed 21.19 to 635.34.

On the Big Board,

America Online

(AOL)

was most active, with 28.9 million shares changing hands. It was up 10 1/8 to 128 5/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active with 24.6 million shares changing hands. It was up 2 1/8 to 42 1/4.

The 30-year Treasury bond was lately up 7/32 to 92 8/32, dropping the yield to 5.80%.

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

2:58 p.m.: Dow, S&P Slip Back Into Negative Territory

The afternoon's negative trend remained in place heading into the home stretch of trading, with the

Dow Jones Industrial Average

surrendering the last of its earlier strength as techs remained in the green.

The Dow lately was off 12 to 11,020, down sharply from its earlier high of 11,100.60.

Johnson & Johnson

(JNJ) - Get Report

,

Merck

(MRK) - Get Report

and

AT&T

(T) - Get Report

were among the downside leaders, countering up moves by

IBM

(IBM) - Get Report

and

United Technologies

. The broader

S&P 500

was weak as well, down 2 to 1343.

The benchmark 30-year Treasury was up 12/32 to 92 13/32, off its best levels of the session. The yield eased to 5.79%.

The

Nasdaq Composite Index

was up 23 to 2526, with

Yahoo!

(YHOO)

and

Amazon.com

(AMZN) - Get Report

continuing to drive the action.

TheStreet.com Internet Sector

index was up 17 to 632.

Small-caps were groovin', with the

Russell 2000

up 5 to 441. But transport stocks were well off their earlier

FDX

(FDX) - Get Report

-led highs, with the

Dow Jones Transportation Average

down fractionally.

Market internals were biased to the plus side, with volume moderate.

New York Stock Exchange

advancers were leading decliners 1,694 to 1,281 on 599 million shares. On the

Nasdaq Stock Market

, 2,130 advancers were ahead of 1,810 decliners on 646 million shares. New 52-week highs were outpacing new lows 100 to 20 on the Big Board and 83 to 28 on the Nasdaq.

America Online

(AOL)

remained the NYSE's most active issue, just outpacing

Compaq

(CPQ)

. AOL was up 10 5/16, or 9%, to 128 1/2 on 22 million shares.

Microsoft

(MSFT) - Get Report

was leading the Nasdaq's actives, up 7/8 to 79 7/8 on 18 million shares.

--

John J. Edwards III

1:54 p.m.: Stocks Fall From Session Highs Alongside Treasuries

Paced by techs and cyclicals, the major stock proxies are still comfortably higher on the day. But as the effects of two morning coupon passes wear off in the bond market, paring Treasuries' gains, stocks have also come off their best levels of the day.

The benchmark 30-year Treasury bond, up as much as 20/32 at around 12:45 p.m., was lately up just 13/32 at 92 14/32, dropping its yield 2 basis points to 5.79%.

The

Dow Jones Industrial Average

, up as much as 69 at around 12:30 p.m. and on place to close at a new all-time high, lately was higher by 40.

IBM

(IBM) - Get Report

, which made a new intraday high of 221 7/8 earlier, paced the index. Big Blue was lately up 3 11/16 at 220 15/16.

The

S&P 500

, up as much as 7 earlier, was lately higher by just 3.

The tech-heavy

Nasdaq Composite Index

was holding up a bit better. Up as much as 33 earlier, it was lately up 25.

Small-cap and Internet names were also rallying. The

Russell 2000

index was lately 5 higher, while

TheStreet.com Internet Sector Index

was lately up 11.

On the

New York Stock Exchange

Compaq

(CPQ)

was the most active issue, while on the

Nasdaq Stock Market

,

Microsoft

(MSFT) - Get Report

was most active.

Advancers were beating decliners 1,721 to 1,185 on the NYSE, with 508 shares changing hands, and 2,076 to 1,723 on the Nasdaq, with 543 shares changing hands.

--

Elizabeth Roy

12:55 p.m.: Midday Musings: Tech Leads a Broad Recovery From Recent Weakness

12:03 p.m.: Stocks Turn Higher in Modest Range Trading

Stocks were looking poised for a rush at midday, pushing on the top end of the day's relatively narrow trading range. Technology shares were holding steady in the vanguard of the upward trend.

After giving up an early surge and falling into negative territory, the

Nasdaq Composite Index

was back in black, lately up 17 to 2520.

Cisco

(CSCO) - Get Report

was leading the index's bellwethers, up 2 7/16 to 111.

Small-cap issues were performing well, with the

Russell 2000

surging 1 and the

S&P SmallCap 600

up fractionally. Internet stocks were looking modestly buoyant, with

TheStreet.com Internet Sector

index up 2 to 617.

The

Dow Jones Industrial Average

and the

S&P 500

were up 16 to 11,048 and 1 to 1346, respectively.

The benchmark 30-year Treasury was up 11/32 to 92 12/32, its yield dropping to 5.79%.

Market internals were looking good.

New York Stock Exchange

advancers were leading decliners 1,628 to 1,137 on 335 million shares. On the

Nasdaq Stock Market

, 1,920 advancers were beating 1,588 decliners on 363 million shares.

Most active on the NYSE was

Compaq

(CPQ)

, up 1 9/16 to 26 5/16 on 15 million shares.

Dell

(DELL) - Get Report

was the Nasdaq's most active issue, with 11 million shares changing hands. It was up 1 5/16 to 41 1/2.

Tech Focus

The

Philadelphia Box Maker Index

was leading the major tech indices, up 5 to 238. The

Morgan Stanley High-Tech

was up 16 to 1009, and the

Philadelphia Stock Exchange Semiconductor Index

was up 3 to 390.

Xoom.com

(XMCM)

is popping on news that it will merge with

General Electric

(GE) - Get Report

unit

NBC's

Internet operations and Web service

Snap.com

, a joint venture of

CNet

(CNET) - Get Report

and NBC. Xoom was up 6 13/16, or 9%, to 82; CNet was up 10 5/16, or 9%, to 124 3/8.

--

Thomas Lepri

10:57 a.m.: Stocks Remain Modestly Mixed

While the broader market kept up the cautious tone it opened on, at midmorning strength in Internet stocks and bargain hunting in computer stocks was taking tech proxies higher.

"You have pockets of strength," said Jim Volk, co-director of institutional trading at

D.A. Davidson

, who noted the continued strength in

IBM

(IBM) - Get Report

, as well as the perceptions that

Compaq

(CPQ)

is turning around.

But with the bond market jittery about the influx of new supply at this week's quarterly refunding, and the stock market worried about the bond market, the market in general was feeling cautious.

"I think the market continues to be nervous about the bond market more than anything else," said Volk. "That's pretty much what got things rolling on the downside again this morning."

The

Dow Jones Industrial Average

was lately off 25 to 11,006, while the broader

S&P 500

was off 5 to 1340. The tech-stuffed

Nasdaq Composite

was up 8 to 2512, and

TheStreet.com Internet Sector

index was up 5, or 1%, to 619. The small-cap

Russell 2000

was up 2 to 438.

The 30-year Treasury was up down 1/32 to 91 31/32, putting the yield at 5.82%.

--

Justin Lahart

9:54 a.m.: Stocks Mixed in Early Trading

Stocks were mixed in early trading, with tech shares trending higher and blue-chips modestly under break-even.

The tech-loaded

Nasdaq Composite Index

was the upside leader among top indices, lately up 12 to 2515.

Yahoo!

(YHOO)

and

Amazon.com

(AMZN) - Get Report

were helping the Comp amid a run-up in Internet stocks --

TheStreet.com Internet Sector

index was up 5 to 619.

The

Dow Jones Industrial Average

was down 30 to 11,002 and the

S&P 500

was down 5 to 1340. The small-cap

Russell 2000

was faring better, up 1 to 437.

The bellwether 30-year Treasury bond was off 1/342 to 92 1/32, its yield edging up to 5.822%.

Most Up at Open -- NYSE

America Online (AOL) , up 3 9/16 to 121 3/4

.

Most Up at Open -- Nasdaq

Lycos (LCOS) , up 10 1/8 to 99 5/8

: The stock was up on reports that

USA Networks

(USAI) - Get Report

plans to abandon its bid for Lycos, which had been unpopular with Lycos shareholders.

Most Down at Open -- NYSE

Honeywell (HON) - Get Report, down 3 7/16 to 100 9/16

.

Most Down at Open -- Nasdaq

Media Metrix (MMXI) , down 2 15/16 to 42 5/8

.

--

John J. Edwards III