The rally marches on.

As of 1:40 p.m. EST, all major indices continued their climb higher. The

Nasdaq Composite Index

and the

S&P

were setting new all-time records while the

Dow

played catch-up ball, moving higher during this past hour of trading.

The Nasdaq, currently up 2% today, pushed past the highs attained in the early morning.

Intel

was leading the way, up 4 15/16, or 4%, to 123 15/16, after a

Merrill Lynch

upgrade before the opening bell.

Pick an industry and the major companies in that sector were rising. The

American Stock Exchange

pharmaceutical index was up 2%; brokers were up 3%. Equally impressive was the oil service sector, consistently beaten down over the last several weeks. The Philadelphia Stock Exchange oil service index was up 5%.

Schlumberger

(SLB) - Get Report

was up 2 11/16, or 6%, to trade at 47 1/16; and

Halburton

(HAL) - Get Report

rose 2 1/8, or 7% to 32 3/4.

Smaller drilling stocks such as

BJ Services

(BJS)

and

Baker Hughes

(BHI)

were higher. BJ Services was up 9/16, or 4%, to 13 15/16, while Baker Hughes was up 5/16, or 2%, to 16 11/16.

TheStreet.com

Internet Sector index was also rising rapidly, up 14 to 424. The previous record, set Monday, was 419.

Yahoo

was up 5 1/8, or 2%, to 250 1/2, while

Amazon.com

was down 3/16 to 323 3/4.

America Online

(AOL)

, soon to join the exclusive club of 500 brought together by the S&P folks, was down 1/2 to 137 1/2. This stock closed at 122 3/4 but rose to 138 in late composite trading yesterday.

Venator

(Z) - Get Report

, soon to be living the rest of its short life on the index in agonizing pain, was down 5/8, or 9%, to 6 3/16.

The

Dow Jones Industrial Average

was up 111 to 9155, the S&P 500 was up 14 to 1218 and the

Russell 2000

was up 2 to 402. The 30-year Treasury, which didn't look too good in the morning, was getting worse, down 29/32 to 100 30/32, yielding 5.19%.

On the New York Stock Exchange, advancers were beating decliners 1,341 to 1,167 on 179 million shares. On the Nasdaq Stock Market, winners were beating losers 1,588 to 1,574 on 259 million shares.

On the NYSE, 64 issues had set new 52-week highs while 38 had touched new lows. On the Nasdaq, 72 issues had set new highs while new lows totaled 34.

1:07 p.m.: Midday Musings: Pre-Christmas Cheer Reigns on Wall Street

12:05 p.m.: Stocks Head Back Toward Session Highs

The morning stock rally has stopped by the steam store and picked some up. After a small dip, the major indices are heading back toward their session highs.

The

Nasdaq Composite Index

was up 34 to 2155, still led by freshly

Kurlak

-blessed

Intel

(INTC) - Get Report

along with

Microsoft

(MSFT) - Get Report

,

Cisco

(CSCO) - Get Report

and

Dell

(DELL) - Get Report

. The large-cap

Nasdaq 100

was up 2%.

TheStreet.com Internet Sector

index hasn't wavered from its record-setting pace, lately up 17 to 427.

America Online

(AOL)

, set to replace

Venator

(Z) - Get Report

in the

S&P 500

Dec. 31, was up 11/16 to 138 5/8. The stock closed at 122 3/4 in yesterday's

New York Stock Exchange

session but rocketed to 138 in late composite trading as index-fund buyers jumped in. Venator was down 9/16, or 8%, to 6 1/4.

The

Dow Jones Industrial Average

was up 92 to 9137, the S&P 500 was up 13 to 1216 and the

Russell 2000

was up 2 to 402.

The 30-year Treasury bond's slide steepened, leaving it off 18/32 to 101 9/32 and yielding 5.17%.

Big Board advancers were beating decliners 1,490 to 1,232 on 288 million shares. On the

Nasdaq Stock Market

, winners were beating losers 1,803 to 1,739 on 407 million shares.

On the NYSE, 75 issues had set new 52-week highs while 53 had touched new lows. On the Nasdaq, 83 issues had set new highs while new lows totaled 56.

Tech Focus

Among the technology indices, the

Morgan Stanley High-Tech 35

index was up 2%, the

Philadelphia Stock Exchange Semiconductor Index

was up 1% and the

Philadelphia Stock Exchange Computer Box Makers Index

was up 1%.

There's no sign today that speculators are ready to wake up from their cozy Internet dream.

uBid

(UBID)

continues to not just defy gravity but slap gravity and insult gravity's mother, lately exploding for a gain of 47 1/4, or 35%, to 182. No releases, no company comments -- the Web auctioneer, public just a couple of weeks, remains in a quiet period.

UBid's market capitalization now totals $1.6 billion or so, while venerable old competitor

eBay

(EBAY) - Get Report

is at a lofty $12.1 billion. As a colleague points out, that's more than the entire market cap of the U.S. gambling industry. Not that there's anything wrong with that.

11 a.m.: Nasdaq Leads March Higher

The

Nasdaq Composite Index

, today's leader among major indices, traded as high as 2152.60 in the first 10 minutes of trading but lately was up 22 to 2143.

Intel

(INTC) - Get Report

continued to pace the tech-saturated index, up 4 5/16 to 123 7/8 after a

Merrill Lynch

upgrade to near- and long-term accumulate from neutral.

TheStreet.com Internet Sector

index remained on pace for a new high, up 13 to 423 (the record, set

Monday, is 419.97).

Yahoo

(YHOO)

was up 4 to 249 1/8, while

Amazon.com

(AMZN) - Get Report

retreated from an intraday peak of 330 and was up 1/4 to 324 3/16.

America Online

(AOL)

, set to replace

Venator

(Z) - Get Report

in the

S&P 500

Dec. 31, was off 1 3/4 to 136 3/8. That could be misleading, however: The stock closed at 122 3/4 in yesterday's

New York Stock Exchange

session but rocketed to 138 in late composite trading as index-fund buyers jumped in. Venator was down 9/16, or 8%, to 6 1/8.

The

Dow Jones Industrial Average

was up 52 to 9096, the S&P 500 was up 7 to 1211 and the

Russell 2000

was up 1 to 401.

The 30-year Treasury bond continued its retreat, off 9/32 to 101 19/32 and yielding 5.15%.

Paul Rich, a trader at

BT Brokerage

, said there's a "very positive overtone" to today's trading but expressed some bemusement at the continuing surge. "How different are we than last October, really?" he said. "It's really not that different around the world, which makes me wonder. But I guess it's good. Unfounded, but good."

On the NYSE, advancers were beating decliners 1,341 to 1,167 on 179 million shares. On the

Nasdaq Stock Market

, winners were beating losers 1,588 to 1,574 on 259 million shares.

On the NYSE, 64 issues had set new 52-week highs while 38 had touched new lows. On the Nasdaq, 72 issues had set new highs while new lows totaled 34.

9:53 a.m.: Stocks Roar Out of the Gate

Stocks powered higher from the open, with tech stocks returning to the vanguard.

The

Nasdaq Composite Index

, which pulled back

yesterday after leaping to a new high of 2138.02

Monday, was up 29 to 2150 in the early going.

TheStreet.com Internet Sector

index was up 17 to 427, also on pace for a new high.

The

Dow Jones Industrial Average

was up 57 to 9101, the

S&P 500

was up 11 to 1215 and the

Russell 2000

was up 1 to 402.

America Online

(AOL)

, which late

yesterday was tapped at last for the S&P 500, was up 1 7/8 to 139 7/8. The stock closed at 122 3/4 in yesterday's

New York Stock Exchange

session but rocketed to 138 in late composite trading as index-fund buyers jumped in. AOL joins the S&P 500 after the close Dec. 31, replacing

Venator

(Z) - Get Report

, which was down 11/16, or 10.1%, to 6 1/8.

Meanwhile, the 30-year Treasury bond continued its retreat. It was down 9/32 to 101 18/32, yielding 5.15%.

Most Up at Open -- NYSE

Lucent (LU) , up 2 9/16 to 104 13/16

.

Most Up at Open -- Nasdaq

uBid (UBID) , up 18 1/2 to 153

.

Most Down at Open -- NYSE

Computer Sciences (CSC) , down 1 3/16 to 68 3/16

.

Most Down at Open -- Nasdaq

Transaction Network (TNSI) , down 5 7/8 to 12 1/2

: The company said fourth-quarter and 1999 earnings would fall short of expectations.