Stocks Turn Higher in Modest Range Trading

Technology shares remain up a bit.
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Stocks were looking poised for a rush at midday, pushing on the top end of the day's relatively narrow trading range. Technology shares were holding steady in the vanguard of the upward trend.

After giving up an early surge and falling into negative territory, the

Nasdaq Composite Index

was back in black, lately up 17 to 2520.

Cisco

(CSCO) - Get Report

was leading the index's bellwethers, up 2 7/16 to 111.

Small-cap issues were performing well, with the

Russell 2000

surging 1% and the

S&P SmallCap 600

up fractionally. Internet stocks were looking modestly buoyant, with

TheStreet.com Internet Sector

index up 2 to 617.

The

Dow Jones Industrial Average

and the

S&P 500

were up 16 to 11,048 and 1 to 1346, respectively.

The benchmark 30-year Treasury was up 11/32 to 92 12/32, its yield dropping to 5.79%.

Market internals were looking good.

New York Stock Exchange

advancers were leading decliners 1,628 to 1,137 on 335 million shares. On the

Nasdaq Stock Market

, 1,920 advancers were beating 1,588 decliners on 363 million shares.

Most active on the NYSE was

Compaq

(CPQ)

, up 1 9/16 to 26 5/16 on 15 million shares.

Dell

(DELL) - Get Report

was the Nasdaq's most active issue, with 11 million shares changing hands. It was up 1 5/16 to 41 1/2.

Tech Focus

The

Philadelphia Box Maker Index

was leading the major tech indices, up 5 to 238. The

Morgan Stanley High-Tech

was up 16 to 1009, and the

Philadelphia Stock Exchange Semiconductor Index

was up 3 to 390.

Xoom.com

(XMCM)

is popping on news that it will merge with

General Electric

(GE) - Get Report

unit

NBC's

Internet operations and Web service

Snap.com

, a joint venture of

CNet

(CNET) - Get Report

and NBC. Xoom was up 6 13/16, or 9%, to 82; CNet was up 10 5/16, or 9%, to 124 3/8.

10:57 a.m.: Stocks Remain Modestly Mixed

While the broader market kept up the cautious tone it opened on, at midmorning strength in Internet stocks and bargain hunting in computer stocks was taking tech proxies higher.

"You have pockets of strength," said Jim Volk, co-director of institutional trading at

D.A. Davidson

, who noted the continued strength in

IBM

(IBM) - Get Report

, as well as the perceptions that

Compaq

(CPQ)

is turning around.

But with the bond market jittery about the influx of new supply at this week's quarterly refunding, and the stock market worried about the bond market, the market in general was feeling cautious.

"I think the market continues to be nervous about the bond market more than anything else," said Volk. "That's pretty much what got things rolling on the downside again this morning."

The

Dow Jones Industrial Average

was lately off 25 to 11,006, while the broader

S&P 500

was off 5 to 1340. The tech-stuffed

Nasdaq Composite

was up 8 to 2512, and

TheStreet.com Internet Sector

index was up 5, or 1%, to 619. The small-cap

Russell 2000

was up 2 to 438.

The 30-year Treasury was up down 1/32 to 91 31/32, putting the yield at 5.82%.

--

Justin Lahart

9:54 a.m.: Stocks Mixed in Early Trading

Stocks were mixed in early trading, with tech shares trending higher and blue-chips modestly under break-even.

The tech-loaded

Nasdaq Composite Index

was the upside leader among top indices, lately up 12 to 2515.

Yahoo!

(YHOO)

and

Amazon.com

(AMZN) - Get Report

were helping the Comp amid a run-up in Internet stocks --

TheStreet.com Internet Sector

index was up 5 to 619.

The

Dow Jones Industrial Average

was down 30 to 11,002 and the

S&P 500

was down 5 to 1340. The small-cap

Russell 2000

was faring better, up 1 to 437.

The bellwether 30-year Treasury bond was off 1/342 to 92 1/32, its yield edging up to 5.822%.

Most Up at Open -- NYSE

America Online (AOL) , up 3 9/16 to 121 3/4

.

Most Up at Open -- Nasdaq

Lycos (LCOS) , up 10 1/8 to 99 5/8

: The stock was up on reports that

USA Networks

(USAI) - Get Report

plans to abandon its bid for Lycos, which had been unpopular with Lycos shareholders.

Most Down at Open -- NYSE

Honeywell (HON) - Get Report, down 3 7/16 to 100 9/16

.

Most Down at Open -- Nasdaq

Media Metrix (MMXI) , down 2 15/16 to 42 5/8

.

--

John J. Edwards III