Stocks Continue to Rally at Midmorning

The upside momentum isn't slacking, with all of the major indices still firmly higher.
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The major market averages continued higher at midmorning as the market got its chance to respond to Friday's

employment report

after the long holiday weekend.

Bonds surged

Friday thanks to news that

nonfarm payrolls

grew only 46,000 in March, much lower than expected, soothing fears the economy may be overheating. The unemployment rate dropped to 4.2%.

The 30-year Treasury bond rose again today. It was up 2/32 to 95 1/32, yielding 5.60%.

The

Dow Jones Industrial Average

was up 79 to 9912. The

S&P 500

was down 11 to 1304. The

Nasdaq Composite Index

was up 29 to 2523. The Nasdaq Comp has risen as high as 2529.82 today and remains on pace for a new all-time closing high. The small-cap

Russell 2000

up 2 to 401.

TheStreet.com Internet Sector

index was up 8 to 665.

TheStreet.com E-Commerce Index

was down 3 to 120.

Stephen Shobin, chief technical analyst at

Lehman Brothers

, has been and continues to be cautious on the market.

He sees the market trading in a range for many months going forward. For the S&P 500, the top end of the trading range he sees is 1300 to 1320, with the bottom end of the range at 1135 to 1150.

Shobin cited several factors that would make him more constructive on the market. First, he said he'd need to see consecutive days of "really dynamic momentum," where advancers beat decliners by a 2-to-1 margin and up volume beats down volume by a 4-to-1 ratio. The second factor he cited was a sharp rally in the bond market, and third, having a convergence of the major indexes with their 200-day moving average lines.

He said two or three of those factors occurring would make him more constructive.

On the

New York Stock Exchange

, advancers were beating decliners 1,518 to 1,035 on 174 million shares. On the Nasdaq, winners were leading losers 1,755 to 1,463 on 272 million shares.

On the NYSE, 34 issues had set new 52-week highs while 26 had touched new lows. On the Nasdaq, 86 issues had set new highs while new lows totaled 64.

On the Big Board,

America Online

(AOL)

was most active, with 7.3 million shares changing hands. It was up 3 15/16 to 153 15/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 11.2 million shares changing hands. It was up 1 13/16 to 43.

9:51 a.m.: Stocks Hop at the Open

Stocks were higher in the early going in the wake of Friday's

employment report

as the 30-year Treasury bond rallied.

The

Labor Department

said nonfarm payrolls grew only 46,000 in March, much lower than economists predicted, while the unemployment rate dropped to 4.2% from 4.4% in February.

The 30-year bond was up 7/32 to 95 6/32, yielding 5.58%. The long bond also rallied in

Friday's abbreviated session. The stock market was closed Friday.

Leading the way on the upside was the

Nasdaq Composite Index

, which was up 31 to 2524. The

Dow Jones Industrial Average

was up 70 to 9903. The

S&P 500

was up 11 to 1305. The

Russell 2000

was up 3 to 402.

TheStreet.com Internet Sector

index was up 9 to 666.

TheStreet.com E-Commerce Index

was up 3 to 119.

Most Up at Open -- NYSE

Charles Schwab (SCH) , up 2 3/4 to 97

.

Most Up at Open -- Nasdaq

DoubleClick (DCLK) , up 11 7/16 to 101

.

Most Down at Open -- NYSE

Sony (SNE) - Get Report, down 1 7/8 to 94

.

Most Down at Open -- Nasdaq

Aspect Development (ASDV) , down 13 1/32 to 8 7/8

: The company issued an earnings warning.