Stocks Turn Narrowly Mixed

The Internet sector can't hold onto its gains, thereby pulling the major indices from their session highs.
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The major market averages have shrugged off a squishy start to trade near unchanged while

American Airlines'

battle with its pilots' union has heated up.

The

Dow Jones Industrial Average

was down 2 to 9131. The

S&P 500

was up 2 to 1218. The

Nasdaq Composite Index

was up 2 to 2313. The

Russell 2000

was down 4 to 399.

American Airlines, a division of

AMR

(AMR)

, today asked a federal judge for a temporary restraining order to end an

Allied Pilots Association

"sickout" that has caused the airline to cancel hundreds of flights. The tiff with the pilots' union is centered on how American will integrate 300 pilots from

Reno Air

, which it bought in December, into the 9,200-pilot American system.

Some 900 flights were canceled today, American said. AMR was down 1/16 to 55 7/16.

After opening sharply lower,

TheStreet.com Internet Sector

index and

TheStreet.com E-Commerce Index

rallied and rose into positive territory, but have since faded back into the red.

TheStreet.com Internet Sector

index was down 7 to 449, while the e-commerce index was off 2 to 92.

In the Treasury market, the 30-year bond was down 6/32 to 98 31/32, yielding 5.32%. (For more on the fixed-income market, see today's early

Bond Focus.)

On the NYSE, decliners were beating advancers 1,688 to 1,001 on 305 million shares. On the Nasdaq losers were beating winners 1,985 to 1,405 on 431 million shares.

On the NYSE, 46 issues had set new 52-week lows while 6 had touched new highs. On the Nasdaq, 37 issues had set new lows while new highs totaled 8.

On the Big Board,

America Online

(AOL)

was most active, with 9 million shares changing hands. It was down 1/16 to 147 7/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, on volume of 22 million. It was unchanged at 97 3/4.

Tech Focus

Among some of the tech indices, the

Philadelphia Stock Exchange Semiconductor Index

was up 1%, the

Philadelphia Stock Exchange Computer Box Maker Index

was up 1%. The

Morgan Stanley High-Tech 35

was up fractionally. The

Nasdaq 100

was up 1%.

The biggest losers in the Internet arena today include

Lycos

(LCOS)

-- which continued to fall today in the wake of its announced deal with

USA Networks

(USAI) - Get Report

-- and

Go2Net

(GNET)

. Lycos was down 11 1/4, or 12%, to 83, while Go2Net fell 11 1/8, or 11%, to 87 7/8.

TheStreet.com

has written

several

stories about the deal.

In the news,

Shop At Home

(SATH)

said it is working with

Oracle

(ORCL) - Get Report

and

iXL

to launch collectibles.com "as the premier online community for collectible shopping and information." Launch is targeted for the third quarter. Shares of Shop At Home tumbled 22%, while Oracle was off 1/2 to 54 3/16.

Meanwhile,

Goldman Sachs' 13th Annual Technology Investment Symposium

is in its second day. To view TheStreet.com's stories on the conference, click

here.

11:01 a.m.: Stocks Head into Positive Territory

After starting the session down sharply, Internet stocks have bounced back and are well off their lows while the Nasdaq Composite Index has stormed into positive territory and was lately up 1.1%. However, market breadth was poor.

Early on, Internet stocks led the market's tumble. Cyberspace issues were led on the downside by

Lycos

(LCOS)

, which continued to fall after yesterday's huge selloff.

On Tuesday, market participants dumped Lycos in the wake of the announcement of its

deal with

USA Networks

(USAI) - Get Report

.

TheStreet.com

has written

several

stories about the deal.

This morning several Wall Street analysts downgraded the stock. Lycos was down 11 7/8 to 82 1/4, but well off its intraday low of 77.

TheStreet.com Internet Sector

index was down fractionally at 456.

TheStreet.com E-Commerce Index

was up fractionally at 94.

The

Nasdaq Composite Index

was up 25 to 2336.

As for the rest of the market, the

Dow Jones Industrial Average

was up 45 to 9178.

Looking ahead, Jay Suskind, head of institutional equity trading at

Ryan Beck

, said he thinks the Dow is still in a trading range of between 8800 and 9300.

He called the recent Internet stock selloff "healthy."

The

S&P 500

was up 10 to 1226. The

Russell 2000

was down 1 to 402.

After starting out weaker, people stepped in and pulled a little bit of a buy-the-dip maneuver, particularly in the tech arena which helped push the Nasdaq Comp into positive territory.

The 30-year Treasury bond was down 6/32 to 98 31/32, yielding 5.32%.

On the

New York Stock Exchange

, decliners were beating advancers 1,391 to 1,088 on 212 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,669 to 1,404 on 305 million shares.

On the NYSE, 36 issues had set new 52-week lows while 3 had touched new highs. On the Nasdaq, 28 issues had set new lows while new highs totaled 8.

On the NYSE,

Laboratory Corp. of America

(LH) - Get Report

was most active with 7.1 million shares changing hands. It was up 3/8, or 20.7%, to 2 3/16, on an upgrade from

Credit Suisse First Boston

. CS First Boston raised its rating to buy from hold.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active on volume of 15.7 million shares. It was up 2 1/2 to 100 5/16.

10:02 a.m.: Stocks Drop at Open

Stocks were slightly lower as the tumble in Internet stocks was continuing, while

American Airlines

said it expects 906 flight cancellations today. American is a unit of

AMR

(AMR)

. The airline said there were 827 cancellations on Tuesday. AMR was down xx to xx.

The

Dow Jones Industrial Average

was down 29 to 9104. The

S&P 500

was down 4 to 1212. The

Nasdaq Composite Index

was down 15 to 2296. The

Russell 2000

was down 2 to 401.

TheStreet.com Internet Sector

was down 17 to 439. Meanwhile,

TheStreet.com E-Commerce Index

was down 4 to 89.

The 30-year Treasury bond was up 4/32 to 99 9/32, yielding 5.30%.

Most Up at Open -- NYSE

Hewlett Packard (HWP) , up 1 7/8 to 72 1/2

:

Most Up at Open -- Nasdaq

Concord EFS (CEFT) , up 3 to 28 1/2

.

Most Down at Open -- NYSE

Computer Associates (CA) - Get Report, down 1 5/8 to 42 3/8

.

Most Down at Open -- Nasdaq

EntreMed (ENMD) , down 11 1/8 to 13 3/8

:

Bristol-Myers Squibb

(BMY) - Get Report

said

Tuesday it will no longer develop EntreMed's experimental anticancer drug, angiostatin, as part of the companies' research agreement.