Euphoria was bountiful in the stock market, as the major market gauges soared, led by the tech-stock chunky

Nasdaq Composite Index

, which leapt 2.9%.

The Nasdaq Comp rallied 69.15 to 2434.43.

The blue-chip

Dow Jones Industrial Average

surged 169.55, or 1.8%, to 9836.39. The

S&P 500

gained 21.35, or 1.7%, to 1289.94. The

Russell 2000

advanced 8.59, or 2.2%, to 392.99.

Internet stocks sported chunky advances.

TheStreet.com Internet Sector

index leapt 33.79, or 5.7%, to 627.90, while

TheStreet.com E-Commerce Index

tacked on 4.53, or 4.2%, to 112.13.

Brokerage stocks jumped thanks in large part to strong earnings from

Morgan Stanley Dean Witter

(MWD)

. Morgan Stanley was up 5 3/4, or 5.8%, to 104 1/8. Meanwhile, the

American Stock Exchange Broker/Dealer Index

rallied 5.8%.

The 30-year Treasury bond was down down 25/32 to 95 2/32, yielding 5.591%.

Market participants cited several factors for today's rally, including follow-through from yesterday's late-session tech-stock surge, some strong news on the earnings front and bargain hunting after the market's recent selloff.

On the

New York Stock Exchange

advancers beat decliners 1,887 to 1,048 on 783 million shares. On the

Nasdaq Stock Market

, winners beat losers 2,361 to 1,544 on 932 million shares.

On the NYSE, 73 issues set new 52-week lows while 19 touched new highs. On the Nasdaq, 97 issues set new lows while new highs totaled 59.

Most active on the Big Board was

America Online

(AOL)

, with 23.5 million shares changing hands. It was up 9 1/2, or 8.1%, to 126 5/8.

NationsBanc Montgomery Securities

analyst Alan Braverman initiated coverage with a buy rating today on AOL. Also, AOL and

eBay

(EBAY) - Get Report

set a four-year marketing pact under which eBay will pay AOL $75 million over the term of the deal. eBay was up 14 1/8, or 9.7%, to 159 3/8.

Most active on the Nasdaq was

Dell

(DELL) - Get Report

, with 40.5 million shares changing hands. It was down 3/8 to 38 1/8.

On a more sobering note,

NATO

forces attacked Yugoslavia again, the second night of assaults on the country.

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

2:54 p.m.: Stocks Remain Sharply Higher on Tech Rally

Tuesday's widespread and ugly selloff was but a remote memory today, as stocks were sharply higher heading into the final hour of trading, led by the tech sector.

The

Nasdaq Composite Index

was up 50 to 1285. The

Dow Jones Industrial Average

was up 124 to 9791. The

S&P 500

was up 16 to 1285. The

Russell 2000

was up 7 to 391.

Internet stocks were rallying.

TheStreet.com Internet Sector

index was up 28 to 622.

TheStreet.com E-Commerce Index

was up 4 to 112.

Some market participants cited followthrough in U.S. trading after rallies in overseas equity markets, some strong news on the earnings front and bargain hunting after the market's recent selloff for today's broad market advance.

Peter Boockvar, equity strategist at

Miller Tabak Hirsch

, noted that it has been a healthy day breadth-wise, with the advance-decline line the best it has been for a while.

"At least it's broadening out," he said, adding, however, that he didn't know if it is just a one-day event.

On the

New York Stock Exchange

, advancers were beating decliners 1,775 to 1,120 on 598 million shares. On the Nasdaq, winners were beating losers 2,244 to 1,532 on 721 million shares.

On the NYSE, 63 issues had set new 52-week lows while 16 had touched new highs. On the Nasdaq, 82 stocks had set new lows while 54 touched new highs.

The 30-year bond was down 19/32 to 95 9/32, yielding 5.58%.

Banks and brokerage stocks were strong overall thanks in part to strong earnings from

Morgan Stanley Dean Witter

(MWD)

. Morgan Stanley posted first-quarter operating earnings of $1.76 a share, far exceeding the

First Call

12-analyst estimate of $1.34 and up from the year-ago $1.10.

Most active on the Big Board was

America Online

(AOL)

, with 19 million shares changing hands. It was up 8 1/2, or 7%, to 125 5/8.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 34 million shares changing hands. It was down 1/16 to 38 1/2.

1:54 p.m.: Nasdaq Continues to Buoy Other Major Indices

Tech stocks continued to soar as the

Nasdaq Composite Index

leapt 2%, leading a broad market advance.

The

Nasdaq Composite Index

was up 50 to 2415.

TheStreet.com Internet Sector

index was up 30 to 624.

TheStreet.com E-Commerce Index

was up 4 to 112.

NationsBanc Montgomery Securities

analyst Alan Braverman initiated coverage of a host of Internet companies with buy ratings today which helped boost the sector.

Among some of the cyberspace stocks that garnered buy ratings from Braverman:

America Online

(AOL)

,

Yahoo!

(YHOO)

and

Amazon.com

(AMZN) - Get Report

. AOL, most active on the

New York Stock Exchange

, was up 8 3/8, or 7%, to 125 1/2 on 17 million shares, while Yahoo! was up 9 7/16, or 6%, to 169 7/8, and Amazon.com gained 10 7/8, or 9%, to 134 1/2.

The other major market gauges were also rallying. The

Dow Jones Industrial Average

was up 147 to 9814. The

S&P 500

was up 18 to 1287. The

Russell 2000

was up 7 to 391.

Treasuries weren't as fortunate as stocks. The 30-year Treasury bond was down 9/32 to 95 18/32, yielding 5.56%.

Financial services stocks have surged, led by brokerage stocks, which rallied in part on the heels of a strong first-quarter earnings report from

Morgan Stanley Dean Witter

(MWD)

. More on Morgan Stanley below.

The

Philadelphia Stock Exchange/KBW Bank Index

was up 2%, while the

American Stock Exchange Broker/Dealer Index

leapt 6%.

On the

New York Stock Exchange

, advancers were beating decliners 1,813 to 1,041 on 509 million shares. On the

Nasdaq Stock Market

, winners were beating losers 2,257 to 1,433 on 619 million shares.

On the NYSE, 54 issues had set new 52-week lows while 14 had touched new highs. On the Nasdaq, 73 issues had set new lows while new highs totaled 52.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 32 million shares changing hands. It was up 1/8 to 38 5/8.

Company Focus: Morgan Stanley Dean Witter

Shares of Morgan Stanley Dean Witter gained after it crushed Wall Street's earnings estimates this morning when it reported first-quarter results. Morgan Stanley was up 4 1/8 to 102 1/2.

The company reported operating earnings of $1.76 a share, far exceeding the

First Call

12-analyst estimate of $1.34 and up from the year-ago $1.10.

"I think it beat everybody's estimate," said Raphael Soifer, analyst at

Brown Brothers Harriman

. He had projected Morgan Stanley would post earnings of $1.25 a share.

Morgan Stanley earned $1.04 billion, up from the year-ago $691 million. Net revenues in the quarter totaled $5.4 billion, up 33% from a year ago, and the company said annualized return on average common equity for the first quarter was 29.5%.

Morgan Stanley said it was a record quarter for investment banking, powered by record revenues from mergers and acquisitions, combined with good results in equity and investment-grade debt underwriting.

The company's online brokerage unit,

Discover Brokerage Direct

, had record trading volume. The company also noted the unit is exploring the possibility of offering after-hours trading.

12:53 p.m.: Midday Musings: War? Earnings Shortfalls? Market Doesn't Care Today

11:48 a.m.: Tech Rally Continues to Boost Major Indices

Stocks maintained their strong gains late this morning in a tech sector-led rally, as Internet stocks were flying.

The

Nasdaq Composite Index

was up 47 to 2412.

TheStreet.com Internet Sector

index was up 33 to 627.

TheStreet.com E-Commerce Index

was up 4 to 112.

Strength in Netland was attributed in large part to

NationsBanc Montgomery Securities

Alan Braverman initiating coverage of a slew of cyberspace companies with buy ratings.

Elsewhere, the

Dow Jones Industrial Average

was up 126 to 9793. The

S&P 500

was up 16 to 1284. The small-cap

Russell 2000

was up 7 to 391.

Meanwhile, the 30-year Treasury bond was down 5/32 to 95 23/32, yielding 5.55%.

On the

New York Stock Exchange

, advancers were beating decliners 1,787 to 921 on 330 million shares. On the

Nasdaq Stock Market

, winners were beating losers 2,112 to 1,167 on 397 million shares.

On the NYSE, 38 issues had set new 52-week lows while 11 had touched new highs. On the Nasdaq, 47 issues had set new lows while new highs totaled 39.

Company Focus: Pharmacia & Upjohn

On the pharmaceutical front,

Pharmacia & Upjohn

(PNU)

will back 1999 estimates of $1.80 a share at the end of today's analyst meeting, a spokesman said. The 18-analyst

First Call

estimate calls for $1.82 vs. the year-ago $1.58.

Pharmacia & Upjohn was up 11/16 to 58 13/16.--

Jesse Eisinger

Tech Focus

The major tech gauges gained handsomely. The

Nasdaq 100

was up 2%, while the

Morgan Stanley High-Tech 35

was also up 2%. The

Philadelphia Stock Exchange Computer Box Maker Index

was up 1%. The

Philadelphia Stock Exchange Semiconductor Index

was up 2%.

On the Big Board,

America Online

(AOL)

was most active, with 14 million shares changing hands. It was up 8 5/16, or 7%, to 125 1/5. Braverman of NationsBanc initiated coverage of AOL with a buy rating. Also, AOL and

eBay

(EBAY) - Get Report

set a four-year marketing pact under which eBay will pay AOL $75 million over the term of the deal. Meanwhile, eBay was up 14 1/4, or 10%, to 159 3/4.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 23 million shares changing hands. It was up 9/16 to 39 1/16.

In the Newsletters

Personal computers priced under $600 recorded big gains in February, compared to the year-ago period, according to market researcher

PC Data

, an article on

Computer Retail Week's

Web site reports. According to PC Data, unit sales of PCs priced under $600 surged a whopping 657% compared with February 1998, and accounted for 19.9% of all PCs sold at retail, the article said.

10:54 a.m.: Stocks Continue to Surge as Tech Sector Rallies

Technology stocks continued the rally they began in the twilight of

yesterday's session, as the major market averages rose sharply.

The

Nasdaq Composite Index

was up 46 to 2411.

Internet stocks were soaring.

TheStreet.com Internet Sector

index was up 30 to 624.

TheStreet.com E-Commerce Index

was up 5 to 113.

NationsBanc Montgomery Securities

analyst Alan Braverman initiated coverage of a host of Internet companies with buy ratings.

Meanwhile, the

Dow Jones Industrial Average

was up 127 to 9794.

Procter & Gamble

(PG) - Get Report

, up 4 5/8 to 100, was the main driver behind the Dow's rise.

The big-cap

S&P 500

was up 15 to 1290, while the small-cap

Russell 2000

was up 6 to 390.

Peter Coolidge, managing director of trading at

Brean Murray Foster Securities

, said he thinks the rally today is due to bargain hunting in the wake of the market's recent selloff and a carry-over of buying from yesterday's late session tech rally. "This isn't unusual," he said. Tech stocks fell to a level where buyers felt comfortable coming back in, he noted.

"We'll see whether we can hold it" or whether the uptick in the market is just a temporary stop on the road down, Coolidge said.

Positive earnings news has also been cited for the market's rise today.

The 30-year Treasury bond was up 1/32 to 95 29/32, yielding 5.53%.

Brokerage stocks were flying thanks in part to a high-powered earnings report from

Morgan Stanley Dean Witter

(MWD)

. Morgan Stanley posted first-quarter earnings of $1.76 a share, far exceeding the

First Call

12-analyst estimate of $1.34 and up from the year-ago $1.10.

Morgan Stanley was up 3 13/16 to 102 3/16. The

American Stock Exchange Broker/Dealer Index

was up 5%.

On the

New York Stock Exchange

, advancers were beating decliners 1,683 to 842 on 225 million shares. On the Nasdaq, winners were leading losers 1,952 to 1,003 on 270 million shares.

On the NYSE, 24 issues had set new 52-week lows while 9 had touched new highs. On the Nasdaq, 30 issues had set new highs while new lows totaled 32.

On the Big Board,

America Online

(AOL)

was most active, with 11 million shares changing hands. It was up 9 1/4 to 126 7/16. Braverman of NationsBanc initiated coverage of AOL with a buy rating. Also, AOL and

eBay

(EBAY) - Get Report

set a four-year marketing pact under which eBay will pay AOL $75 million over the term of the deal. Meanwhile, eBay was up 15 1/16, or 10%, to 160 1/2.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 18 million shares changing hands. It was up 1 1/16 to 39 9/16.

9:57 a.m.: Stocks Take Big Jump at Open

Stocks were up strongly at the open, led by the technology sector which boosted the

Nasdaq Composite Index

2%.

The Nasdaq Comp was up 43 to 2408.

Elsewhere, the

Dow Jones Industrial Average

was up 97 to 9764. The

S&P 500

was up 13 to 1281. The

Russell 2000

was up 5 to 389.

Internet stocks were flying.

TheStreet.com Internet Sector

index was up 28 to 622.

TheStreet.com E-Commerce Index

was up 5 to 112.

The 30-year Treasury bond was up 4/32 to 96, yielding 5.53%.

Most Up at Open -- NYSE

Morgan Stanley Dean Witter (MWD) , up 5 to 103 3/8

: The company posted first-quarter earnings of $1.76 a share, blowing away the

First Call

12-analyst estimate of $1.34 and up from the year-ago $1.10.

Most Up at Open -- Nasdaq

eBay (EBAY) - Get Report, up 14 3/8 to 159 3/4

:

America Online

(AOL)

and eBay set a four-year marketing pact under which eBay will pay AOL $75 million over the term of the deal. Separately, eBay said it filed a registration statement with the

Securities and Exchange Commission

for a proposed public offering of 6.5 million shares of stock.

Most Down at Open -- NYSE

Unocal (UCL) , down 7/8 to 34 3/4

.

Most Down at Open -- Nasdaq

KTI (KTIE) , down 1 9/16 to 13 3/16

.