Stocks were narrowly mixed heading into the final hour of trading, while the Treasury market has bounced well off its worst levels of the session.

The

Dow Jones Industrial Average

was down 23 to 9890. The

S&P 500

was down 3 to 1297. The

Nasdaq Composite Index

was down 3 to 2477. The

Russell 2000

was up fractionally at 399.

TheStreet.com Internet Sector

index was up 3 to 647. Amazon.com was the largest gainer in the index. It was up 8 3/4, or 5%, to 173 1/2. Meanwhile,

TheStreet.com E-Commerce Index

was up 3 to 113.

The major market averages opened the session with solid gains, but quickly eased off their highs. Since late in the morning, stock proxies have traded in a narrow range overall. The Dow peaked roughly 10 minutes after the open.

The 30-year bond was down 21/32 to 94 19/32, yielding 5.63%. A much-stronger-than-expected

Chicago Purchasing Managers Index

reading was blamed for the bond's pummeling, however, it has managed to claw its way well off its session lows. The index for March came in at 57, up from 52.9 in February.

On the

New York Stock Exchange

, decliners were beating advancers 1,498 to 1,424 on 671 million shares. On the Nasdaq, losers were beating winners 2,160 to 1,746 on 748 million shares.

On the NYSE, 112 issues had set new 52-week lows while 34 had touched new highs. On the Nasdaq, 106 stocks had set new lows while 85 touched new highs.

On the Big Board,

Pepsi Bottling Group

(PBG)

was most active, with 59 million shares changing hands. It was down 15/16 to 22 1/16. The company's 100 million-share IPO was priced yesterday at $23 a share, the low end of the offering's range of $23 to $26.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 26 million shares changing hands. It was up 1 1/4 to 41 3/16.

1:57 p.m.: Stocks Narrowly Mixed as Treasuries Remain Depressed

The major market averages were mixed this afternoon, while the 30-year Treasury bond was off its session lows but still getting walloped.

The

Dow Jones Industrial Average

was down 15 to 9899.

The

S&P 500

was down 1 to 1299. The

Nasdaq Composite Index

was up 13 to 2493. The

Russell 2000

was up 1 to 400.

TheStreet.com Internet Sector

index was up 7 to 651.

TheStreet.com E-Commerce Index

was up 3 to 113.

The 30-year Treasury bond was down 28/32 to 94 12/32, yielding 5.65%. A much-stronger-than-expected

Chicago Purchasing Managers Index

reading sent bonds sharply lower. The index for March came in at 57, up from 52.9 in February.

In the news, medical device maker

Guidant

(GDT)

said it is notifying doctors of the possibility of early battery depletion in a limited number of its Discovery, Meridian, and Pulsar pacemakers. Guidant was down modestly, off 1 9/16 to 60 7/16 on the news.

No deaths or injuries have been reported related to the problem, the company said.

On the

New York Stock Exchange

, advancers were beating decliners 1,433 to 1,379 on 558 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,883 to 1,795 on 601 million shares.

On the NYSE, 89 issues had set new 52-week lows while 31 had touched new highs. On the Nasdaq, 74 issues had set new highs while new lows totaled 88.

On the Big Board,

Pepsi Bottling Group

(PBG)

was most active, with 57 million shares changing hands. It was down 1 1/2 to 21 1/2. The company's 100 million-share IPO was priced yesterday at $23 a share, the low end of the offering's range of $23 to $26.

Meanwhle,

ZDNet

(ZDZ)

, is making a dazzling trading debut today. It was up 15 1/2, or 83%, to 34 1/2. ZDNet is the tracking stock for

Ziff-Davis'

(ZD)

Internet division. Ziff-Davis is down 7 1/16, or 24%, to 21 15/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 22 million shares changing hands. It was up 1 15/16 to 41 7/8.

Sector Focus: Tobacco

Tobacco stocks continued to fall today in the wake of news yesterday that an Oregon jury ordered

Philip Morris

(MO) - Get Report

to pay more than $80 million to the family of a smoker who died of lung cancer. In response today, Morgan Stanley Dean Witter downgraded Big Mo to neutral from strong buy. Philip Morris was down 3 1/2, or 9.3%, to 34 1/4, the biggest drag on the Dow. It was second-most active on the Big Board, with 35.9 million shares changing hands.

After news of the verdict hit yesterday afternoon, shares of Big Mo took a tumble and put a significant drag on the Dow.

Meanwhile, other tobacco stocks fell in the wake of the news.

RJR Nabisco

(RN)

was down 1 5/8, or 5.9%, to 26 1/8, while

British American Tobacco Industries

(BTI) - Get Report

was down 9/16 to 17 1/2.

1:30 p.m.: Midday Musings: Dow Muddles Through Uncertain Session While Techs Stay Hot

11:57 a.m.: Stocks Turn Mixed as Treasuries Take a Beating

Stocks turned mixed late this morning, with the

Dow Jones Industrial Average

, the

Russell 2000

and the

S&P 500

falling into the red as the 30-year Treasury bond continued sharply lower.

The Dow was down was down 21 to 9892. The S&P was down 2 to 1299. The

Russell 2000

was down fractionally at 399.

The 30-year Treasury bond was down 1 1/32 to 94 8/32, yielding 5.66%. Treasuries were hit by the release of stronger-than-expected

Chicago Purchasing Managers Index

data for March, which soared to 57.0 from 52.9 in February. (For more, please see the Bond Focus report from late

this morning).

On the plus side, the

Nasdaq Composite Index

was up 10 to 2491.

TheStreet.com Internet Sector

index was up 6 to 650.

TheStreet.com E-Commerce Index

was up 2 to 112.

Meanwhile, shares of

Republic New York

(RNB)

were higher on rumors that

Bank of New York

(BK) - Get Report

is going to buy it. Bank of New York was down 5/16 to 35 3/8, while Republic was up 1 15/16 to 46 5/8.

On the

New York Stock Exchange

, decliners were beating advancers 1,334 to 1,331 on 385 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,782 to 1,602 on 392 million shares.

On the NYSE, 60 issues had set new 52-week lows while 25 had touched new highs. On the Nasdaq, 62 issues had set new lows while new highs totaled 58.

On the Big Board,

Pepsi Bottling Group

(PBG)

was most active, with 53 million shares changing hands. It was down 13/16 to 22 3/16. The company's 100 million-share IPO was priced yesterday at $23 a share, the low end of the offering's range of $23 to $26.

Meanwhile,

ZDNet

(ZDZ)

, which is making its trading debut, was up 13 1/3, or 71%, to 32 1/2. ZDNet is the tracking stock for

Ziff-Davis'

(ZD)

Internet division.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 17 million shares changing hands. It was up 1 1/4 to 41 1/8.

Tech Focus

The

Nasdaq 100

and the

Morgan Stanley High-Tech 35

were up 1%. The

Philadelphia Stock Exchange Computer Box Maker Index

was up 1%. The

Philadelphia Stock Exchange Semiconductor Index

was up 2%.

In the news,

PeopleSoft

(PSFT)

said first-quarter operating profit margins, excluding expected one-time charges, are expected to be lower than it previously forecast due to lower-than-expected revenues. PeopleSoft is a supplier of enterprise application software for business, education and government. It was down 1, or 6%, to 14 11/16.

On the analyst front,

Morgan Stanley Dean Witter

upgraded

LSI Logic

(LSI) - Get Report

to strong buy from outperform and the price target was upped to $50 from $40. LSI was up 3 13/16, or 14%, to 31 5/16.

Morgan Stanley also upgraded

Tech Data

(TECD) - Get Report

to outperform from neutral.

Tech Data yesterday posted fourth-quarter earnings of 64 cents a share, 2 cents ahead of the 16-analyst view and above the year-ago 53 cents. Tech Data was up 3 7/8, or 21%, to 22 3/4.

10:54 a.m.: Nasdaq Remains Biggest Gainer Among Major Indices

Stocks were higher, with the

Nasdaq Composite Index

the biggest gainer among the market's major averages, while the 30-year Treasury bond fell sharply after a much-stronger-than-expected economic report.

The Nasdaq Comp was up 20 to 2501.

The 30-year bond was down 31/32 to 94 8/32, yielding 5.65%, in the wake of the release of the

Chicago Purchasing Managers Index

for March, which soared to 57.0 from 52.9 in February. A Reuters consensus forecast of economists predicted the index would come in at 52.6.

The

Dow Jones Industrial Average

was up 13 to 9926.

Dow component

Philip Morris

(MO) - Get Report

was the biggest loser in the average, down 3 1/4, or 9%, to 34 1/2 in the wake of a courtroom loss yesterday and a

Morgan Stanley Dean Witter

downgrade today.

The

S&P 500

was up 3 to 1304, while the small-cap

Russell 2000

was up 1 to 400.

Louis Todd, head of equities trading at

J.C. Bradford

, said quarter-end window dressing by money managers was part of the reason for the firmness in the market today. He said that with the market going into the next quarter, new money will be flowing into the market and that should help the market over the upcoming week or two. After that, market participants will be focusing on earnings season, he added.

In Netland, cyberspace issues were higher.

TheStreet.com Internet Sector

index was up 9 to 652.

TheStreet.com E-Commerce Index

was up 2 to 112.

"Internet stocks are still hot," said Todd. As for Internet IPOs, "they're in a class by themselves," he said.

Speaking of Internet IPOs, trading in

ZDNet

(ZDZ:NYSE), the tracking stock for

Ziff-Davis'

(ZD)

Internet division, will begin today. Its 10 million IPO was priced at $19.

On the

New York Stock Exchange

, advancers were beating decliners 1,353 to 1,142 on 260 million shares. On the Nasdaq, winners were leading losers 1,556 to 1,505 on 266 million shares.

On the NYSE, 39 issues had set new 52-week lows while 23 had touched new highs. On the Nasdaq, 54 issues had set new highs while new lows totaled 40.

On the Big Board,

Pepsi Bottling Group

(PBG)

was most active, with 49 million shares changing hands. It was down 5/8 to 22 3/8. The company's 100 million-share IPO was priced yesterday at $23 a share, the low end of the offering's range of $23 to $26.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 12 million shares changing hands. It was up 1 1/2 to 41 3/8.

9:54 a.m.: Nasdaq Leads March Higher

The

Nasdaq Composite Index

surged early on, leading the major market gauges on the upside.

The Nasdaq Comp was up 38 to 2518. The

Dow Jones Industrial Average

was up 83 to 9996. The

S&P 500

was up 12 to 1313. The

Russell 2000

was up 2 to 401.

TheStreet.com Internet Sector

index was up 16 to 660.

TheStreet.com E-Commerce Index

was up 3 to 113.

The 30-year Treasury bond was down 7/32 to 95 2/32, yielding 5.60%.

Most Up at Open -- NYSE

Nokia (NOKA) , up 5 1/8 to 161 1/2

.

Most Up at Open -- Nasdaq

VeriSign (VRSN) - Get Report, up 20 1/8 to 154 3/4

: The company set a 2-for-1 stock split.

Most Down at Open -- NYSE

Weatherford (WFT) - Get Report, down 1 5/16 to 27 5/8

.

Most Down at Open -- Nasdaq

Etec Systems (ETEC) , down 15 3/4 to 27 3/8

: The company said it will post a third-quarter loss of 35 cents to 45 cents a share, including charges it will record after cutting 90 jobs, or 8% of its semiconductor products group workforce. Excluding the charges, Etec expects earnings of 10 cents. The 12-analyst view called for earnings of 26 cents vs. the year-ago profit of 47 cents.