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 1284, 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

.