The small-cap

Russell 2000

and the

Nasdaq Composite Index

inched above unchanged late this morning, while the

Dow Jones Industrial Average

and

S&P 500

were a touch softer.

In the news,

NATO

forces launched its first daylight attack on Yugoslavia.

Meanwhile, the Russell 2000 was up 1 to 394. The Nasdaq Comp was up 7 to 2442.

The Dow was down 2 to 9835.

Goodyear

(GT) - Get Report

was the biggest drag on the Dow, down 2 to 49 7/8. Today Goodyear announced an $87 million radial tire expansion at its Canadian passenger tire plant in Valleyfield, Quebec.

The S&P 500 was down 2 to 1288.

TheStreet.com Internet Sector

index was up 9 to 637.

TheStreet.com E-Commerce Index

was up 2 to 114.

The 30-year Treasury bond was up 20/32 to 95 25/32, yielding 5.54%.

On the

New York Stock Exchange

, decliners were beating advancers 1,464 to 1,217 on 287 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,725 to 1,572 on 346 million shares.

On the NYSE, 52 issues had set new 52-week lows while 15 had touched new highs. On the Nasdaq, 55 issues had set new lows while new highs totaled 36.

On the Big Board,

America Online

(AOL)

was most active, with 10 million shares changing hands. It was up 3/16 to 126 11/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 13 million shares changing hands. It was up 7/16 to 38 9/16.

Tech Focus

The

Nasdaq 100

was up fractionally, while the

Morgan Stanley High-Tech 35

was up 1%. The

Philadelphia Stock Exchange Computer Box Maker Index

was up 2%. The

Philadelphia Stock Exchange Semiconductor Index

was up 1%.

Qualcomm

(QCOM) - Get Report

was the biggest gainer on the Nasdaq, up 12 13/16, or 13%, to 111 1/4. Yesterday Qualcomm and

Ericsson

(ERICY)

resolved their disputes on code division multiple access technology. The companies agreed to support a single-world CDMA standard and Ericsson agreed to buy Qualcomm's terrestrial CDMA wireless infrastructure business.

For its part, Ericsson was up 13/16 to 24 3/16.

In other news,

Lexmark International

(LXK)

was up 5 1/4, or 6%, to 99 7/8 on an upgrade from

Morgan Stanley Dean Witter

, which raised its rating on the stock to strong buy from outperform. Lexmark is a printer and office supplies maker.

Lehman Brothers

, meanwhile, initiated coverage of

EMC

(EMC)

with an outperform rating. EMC was up 1 to 125 1/16.

10:53 a.m.: Stocks Remain Lower After Thursday's Rally

Major market averages were weaker at midmorning, giving back some of the ground gained in yesterday's broad-based rally.

As for the situation in the Balkans, a U.S. warship fired a Tomahawk missile today, the first daylight attack since

NATO

forces began air strikes against Yugoslavia earlier this week,

Reuters

reported.

The

Dow Jones Industrial Average

was down 58 to 9779. The big-cap

S&P 500

was down 9 to 1281, while the

Nasdaq Composite Index

was down 9 to 2426. The small-cap

Russell 2000

down fractionally at 393.

TheStreet.com Internet Sector

index was fractionally at 627.

TheStreet.com E-Commerce Index

was down fractionally at 112.

Although the market is slightly weaker today, stocks are currently overall in a monthly time of vigor, according to some.

"We're into our monthly strength cycle," said Harry Laubscher, market analyst at

Tucker Anthony

, noting the "strength cycle" is the last couple of days of the month and the first three or four days of the month when there is typically strength in the market.

He said he's expecting the market to rise into the latter part of next week and the Dow to get back above 10,000. However, he's suggesting to clients to keep selling into strength.

Laubscher said he still likes the energy sector -- a sector he's liked for a few months now -- and some of the cyclical stocks, but the same can't be said for tech.

"The technology stocks we think are really dangerous," he said.

Looking ahead, Laubscher noted that from May to the end of October is historically not a favorable time for the market.

The 30-year Treasury bond was up 19/32 to 95 23/32, yielding 5.54%.

Laubscher said bonds are oversold.

Meanwhile, stock-information company

PC Quote

(PQT)

has surged 7/8, or 10%, to 9 9/16.

TheStreet.com

reported last night that

CNNfn.com

, a financial news site, is in discussions with PC Quote to partner on a joint Internet venture, according to people familiar with the discussions.

On the

New York Stock Exchange

, decliners were beating advancers 1,487 to 1,009 on 192 million shares. On the Nasdaq, losers were leading winners 1,671 to 1,367 on 229 million shares.

On the NYSE, 48 issues had set new 52-week lows while 10 had touched new highs. On the Nasdaq, 42 issues had set new lows while new highs totaled 23.

On the Big Board,

America Online

(AOL)

was most active, with 8 million shares changing hands. It was down 1 1/8 to 125 1/2.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 8 million shares changing hands. It was up 3/16 to 38 1/4.

9:52 a.m.: Stocks Fall After Thursday's Rally

Stocks were down early on after

yesterday's widespread rally led by the tech sector.

The

Dow Jones Industrial Average

was down 69 to 9768. The

S&P 500

was down 10 to 1280. The

Nasdaq Composite Index

was down 21 to 2414. The

Russell 2000

was down 2 to 391.

Internet stocks were giving up some of the ground they gained in yesterday's rally.

TheStreet.com Internet Sector

index was down 9 to 619.

TheStreet.com E-Commerce Index

was down 1 to 111.

The 30-year Treasury bond was up 25/32 to 95 29/32, yielding 5.53%.

Most Up at Open -- NYSE

Telebras (TBH) , up 3 1/16 to 82 5/8

.

Most Up at Open -- Nasdaq

Sepracor (SEPR) , up 6 3/4 to 125

.

Most Down at Open -- NYSE

Sony (SNE) - Get Report, down 3 11/16 to 95

: Sony said it is buying a 50% stake in a new firm intended for setting up an Internet brokerage.

Most Down at Open -- Nasdaq

CMGI (CMGI) , down 5 15/16 to 180 1/2

.