With the

Dow Jones Industrial Average

, the

S&P 500

and the

Nasdaq Composite Index

trading higher for hours and hours today, it looked like it was going to be another session where those gauges would close at record highs. But a late afternoon bout of selling scuttled all that as the three closed in the red.

The small-cap

Russell 2000

did manage to close in the green, but just barely.

Intraday, the Dow traded as high as 11,236.76, while the S&P 500 traded as high as 1405.35. The Nasdaq Comp had traded as high as 2787.17 intraday.

Internet stocks had been among the leading sectors today, but their gains faded dramatically by session's end. Net bellwether

America Online

(AOL)

was up 5 3/4, or 5%, to 121. The gains were attributed to a bullish article in Sunday's

New York Times

. It was most active on the

New York Stock Exchange

with 30.6 million shares changing hands. It had traded as high as 126 7/16 intraday.

Meanwhile,

Yahoo!

(YHOO)

, which had been a big winner through much of the session, ended the session lower. It was down 3 to 174 1/2. Yahoo! had traded as high as 189 1/4 during the session.

As for the bond market, it slumped, but did manage to pull itself off its lows. The 30-year Treasury bond was battered throughout the session.

On the NYSE, decliners beat advancers 1,588 to 1,440 on 724 million shares. On the

Nasdaq Stock Market

, winners beat losers 2,084 to 1,949 on 1.13 billion shares.

On the NYSE, 152 issues set new 52-week highs while 36 touched new lows. On the Nasdaq, 244 issues set new 52-week highs while new lows totaled 24.

On the Nasdaq,

Intel

(INTC) - Get Report

was most active, with 28.5 million shares changing hands. It was up 3/8 to 63 7/8, but off its session highs.

Merrill Lynch

and

Prudential Securities

upgraded Intel today.

BancBoston Robertson Stephens

trimmed earnings estimates on the chip giant.

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

Earlier...

3:04 p.m.: Dow, S&P 500, Nasdaq Heading for Record-High Closes

Internet stocks were enjoying beefy gains heading into the final hour of trading as the

Dow Jones Industrial Average

, the

S&P 500

and the

Nasdaq Composite Index

were all poised to close at record highs.

2:07 p.m.: Stocks Continue to Build on Last Week's Gains

Stocks were solidly higher this afternoon as the market built on last week's momentum, led by the tech-heavy

Nasdaq Composite Index

.

1:03 p.m.: Midday Musings: Broad Rally Greets the New Week as Bonds Are Ignored

11:57 a.m.: Stocks Remain Higher Amid Big Drop in Bonds

Stocks continued to defy both the urge to take profits after a long run and a downward-moving bond market going as they approached midday.

10:59 a.m.: Nasdaq Leads Modest Climb Higher

When the

S&P 500

goes up, with nary a pause, 4.5% in one week, it's supposed to go down when it opens up the next week as people take profits. When the bond market sells off in

Fed

-wary times, stocks are supposed to follow along.

9:56 a.m.: Stocks Open Mostly Higher

The tech-laden

Nasdaq Composite Index

popped out of the gate and was firmly on the upside as the major market averages were mixed early on after the long holiday weekend.