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Stocks Mostly Higher as Dow Jumps

The Internet sector is in the red.

Stocks were higher late this morning, led by the

Dow Jones Industrial Average

, while Internet stocks slumped.

The Dow was up 94 to 10,883, with

Chevron

(CHV)

and

DuPont

(DD) - Get DuPont de Nemours, Inc. Report

powering the venerable blue-chip average.

After opening lower, both stocks and bonds reversed course after the

National Association of Purchasing Management

said its

Purchasing Managers' Index

slipped to 52.8 in April from 54.3 in March. The drop in the index soothed fears in the wake of recent economic data that the economy was getting too hot and that the

Federal Reserve

would have to intervene and raise interest rates to cool things off.

However, the long bond has fallen back into negative territory, down 3/32 to 94 2/32, yielding 5.67%.

On Friday, two economic reports showed the economy was barreling along at a steamy clip. The

Commerce Department

reported that

gross domestic product

advanced at a 4.5% annual rate in the first quarter, well above economists' forecasts of 3.3% growth. The

National Association of Purchasing Management-Chicago

said its index jumped to 63.3 in April from 57.0 in March.

The

S&P 500

was up 7 to 1342. The technology chunky

Nasdaq Composite Index

was down 3 to 2540. The

Russell 2000

was up 1 to 434.

TheStreet.com Internet Sector

index was down 15 to 642.

Basic materials and energy stocks were rallying. The

Morgan Stanley Commodity Related Equity Index

was up 1%, the

Chicago Board Options Exchange Oil Index

was up 2%, while the

Philadelphia Stock Exchange Oil Service Index

was up 3%.

The

Philadelphia Stock Exchange Forest & Paper Products Index

was up 2%.

On the

New York Stock Exchange

, advancers were beating decliners 1,752 to 966 on 333 million shares. On the

Nasdaq Stock Market

, winners were beating losers 1,907 to 1,527 on 372 million shares.

On the NYSE, 40 issues had set new 52-week highs while 12 had touched new lows. On the Nasdaq, 58 issues had set new highs while new lows totaled 18.

On the Big Board,

America Online

(AOL)

was most active, with 9 million shares changing hands. It was down 5 13/16 to 136 15/16.

On the Nasdaq,

Microsoft

(MSFT) - Get Microsoft Corporation (MSFT) Report

was most active, with 11 million shares changing hands. It was down 1 1/16 to 80 3/16.

Tech Focus

Tech sector barometers were mixed. The

Nasdaq 100

was up fractionally, while the

Morgan Stanley High-Tech 35

was down 1%. The

Philadelphia Stock Exchange Semiconductor Index

was up 1%. The

Philadelphia Stock Exchange Computer Box Maker Index

was also up 1%.

News that

Philips Electronics

(PHG) - Get Koninklijke Philips N.V. Sponsored ADR Report

reached a friendly pact to buy chipmaker

VLSI Technology

(VLSI)

sent both VLSI's and Philips' stocks higher. VLSI was up 1 15/16, or 10.3%, to 20 13/16, while Philips advanced 3 3/8 to 88 1/2.

The deal brings to an end Philips' nearly two-month hostile takeover attempt. Philips said it will pay $21 a share for VLSI, a chunky premium above its hostile bid that valued the chipmaker at $17 a share, or $777 million.

Market participants don't seem to think too much of

RealNetworks'

(RNWK) - Get RealNetworks, Inc. Report

release of its new software

RealJukebox

, which allows consumers to record CD collections to PC hard drives and find and download music from the Internet.

TheStreet.com

wrote about the software in a

story this morning. RealNetworks was down 9 3/8 to 212 1/8.

In other news,

TheStreet Recommends

RSL Communications

(RSLC)

is planning an IPO of its wholly owned Internet telephony subsidiary,

Delta Three

. The offering is expected to take place during the third quarter. RSL was down 1 1/2 to 31 5/8.

Some

Datek Online

customers were blocked from entering orders or checking their portfolios early Monday due to a configuration problem that caused a slowdown in processing the 57,000 orders that had piled up over the weekend, Datek marketing director Robert Bethge said. Customers were unable to place orders during and immediately follow the opening, he said, and until 11 a.m. EDT the system continued to reject some orders.

Bethge said that trading and the portfolios have been up and running since then.

11:17 a.m.: NAPM Report Pushes Stocks Off Session Lows

Soothing economic news helped drive the 30-year Treasury bond off its session lows and lift most major market barometers into positive territory.

The

National Association of Purchasing Management

said its

Purchasing Managers' Index

slipped to 52.8 in April from 54.3 in March. The long bond erased its early loss, up 5/32 to 94 9/32, yielding 5.65%. On Friday, two economic reports, which showed vigorous economic growth, sparked fears of an overheating economy and worries that the

Federal Reserve

might have to raise interest rates to cool it down.

The

Dow Jones Industrial Average

was up 61 to 10,850. The

S&P 500

was up 3 to 1338.

The

Nasdaq Composite Index

was down 5 to 2538. The

Russell 2000

was up 2 to 435.

TheStreet.com Internet Sector

index was up 11 to 645.

Meanwhile, in the news,

MediaOne Group's

(UMG)

board has accepted

AT&T's

(T) - Get AT&T Inc. Report

$85 cash-and-stock offer for the company, which the board said was a "superior proposal" to the previous merger deal MediaOne reached with

Comcast

(CMCSA) - Get Comcast Corporation Class A Report

. Under terms of the Comcast deal, Comcast has until Thursday to respond to the AT&T proposal.

AT&T and Comcast rose, while MediaOne slipped.

On the

New York Stock Exchange

, advancers were beating decliners 1,565 to 958 on 215 million shares. On the Nasdaq, winners were beating losers 1,749 to 1,421 on 255 million shares.

On the NYSE, 26 issues had set new 52-week highs while 11 had touched new lows. On the Nasdaq, 48 issues had set new highs while new lows totaled 16.

Meanwhile, one of the contributors to the market's recent surge has been attributed to strong first-quarter earnings. Some market analysts lately have wondered where the market might get its inspiration for more upside, now that the earnings season is drawing to a close.

A handful of earnings reports were released this morning.

Arco

(ARC) - Get ARC Document Solutions, Inc. Report

posted first-quarter operating earnings of 53 cents a share, vastly outstripping the First Call 21-analyst estimate of 29 cents, but down from the year-ago 65 cents.

theglobe.com

(TGLO)

reported a first-quarter pro forma loss of 47 cents a share, narrower than the First Call two-analyst estimate of a loss of 55 cents. Its stock jumped on the news, up 6 3/4, or 11%, to 67 3/8.

On the Big Board,

America Online

(AOL)

was most active, with 6 million shares changing hands. It was down 5 3/4 to 137.

On the Nasdaq,

Microsoft

(MSFT) - Get Microsoft Corporation (MSFT) Report

was most active, with 8 million shares changing hands. It was down 1 1/16, or 1%, to 80 1/4.

9:58 a.m.: Stocks Open Mostly Lower

Stocks were mostly lower in the early going while the 30-year Treasury bond was tumbling again after falling precipitously on

Friday.

The

Dow Jones Industrial Average

was up 2 to 10,791. The

S&P 500

was down 4 to 1331. The

Nasdaq Composite Index

was down 17 to 2526. The

Russell 2000

was down fractionally at 433.

TheStreet.com Internet Sector

index was down 11 to 646.

The 30-year Treasury bond was down 15/32 to 93 21/32, yielding 5.70%.

Most Up at Open -- NYSE

Consolidated Stores (CNS) - Get Cohen & Steers, Inc. Report, up 1 15/16 to 36 5/16

.

Most Up at Open -- Nasdaq

Qualcomm (QCOM) - Get QUALCOMM Incorporated Report, up 8 3/8 to 208 3/8

.

Most Down at Open -- NYSE

Bristol-Myers Squibb (BMY) - Get Bristol-Myers Squibb Company Report, down 1 15/16 to 61 5/8

.

Most Down at Open -- Nasdaq

Western Wireless (WWCA) , down 15 11/16 to 25 3/8

.