Oh my.

A tidal wave of selling sent the

Nasdaq Composite Index

down a stunning 5.4% to its second-biggest point loss ever, while the

Dow Jones Industrial Average

slumped 0.5%, after rising nearly 272 points earlier in the session.

Meanwhile, cyclicals, transportation, and oil and oil service stocks turned in a strong session. Volume was heavy.

Internet stocks were crushed.

TheStreet.com Internet Sector

index swooned 108.18, or 16.2%, to 560.84.

TheStreet.com E-Commerce Index

got buried, falling 23.59, or 18%, to 107.15.

The Nasdaq Comp swooned 134.98 to 2349.06, slightly better than the worst point loss -- 140.43 -- which the Comp suffered on Aug. 31.

The Dow fell 53.36 to 10,440.53. It had peaked at 10,765.74 around 12:35 p.m. EDT.

On the plus side, the

Morgan Stanley Cyclical Index

advanced 1.7%. The

Dow Jones Transportation Average

advanced 1.1%. The

Philadelphia Stock Exchange Oil Service Index

jumped 4%, while the

Chicago Board Options Exchange Oil Index

rose 1.9%.

The

S&P 500

surrendered 29.78, or 2.3%, to 1289.22. The

Russell 2000

slumped 9.14, or 2.2%, to 412.44.

The 30-year Treasury bond was up 24/32 to 96 3/32, yielding 5.518%.

On the

New York Stock Exchange

, advancers beat decliners 1,925 to 1,195 on 1.2 billion shares. On the

Nasdaq Stock Market

, losers beat winners 2,453 to 1,687 on 1.2 billion shares.

On the NYSE, 163 issues set new 52-week highs while 32 touched new lows. On the Nasdaq, 80 issues set new highs while new lows totaled 76.

On the Big Board,

America Online

(AOL)

was most active, with 55.4 million shares changing hands. It was down 24 3/4, or 17.7%, to 115.

On the Nasdaq,

Microsoft

(MSFT) - Get Report

was most active, with 36.8 million shares changing hands. It was down 5 5/8, or 6.5%, to 81.

Market data above are preliminary. Updated numbers and analysis will follow in the Market Roundup

3:06 p.m.: Stocks Mostly Lower in Volatile, Heavy Trading

Wild swings marked the market's action today as investors dumped tech, drug, and Internet stocks, while banks and cyclicals continued to show strength.

Tech stocks and Internet issues plunged. The

Nasdaq Composite Index

was down 99, or 4%, to 2385.

TheStreet.com Internet Sector

index was down 81 to 588.

TheStreet.com E-Commerce Index

was down 20 to 111.

The market's leaders for a while, the techs and drug stocks, "are taking it on the chin big-time," said Jay Suskind, head of institutional equity trading at

Ryan Beck

. Internet stocks were getting buried, indicating that "the bloom may be off the rose," he said.

The

Dow Jones Industrial Average

was up 24 to 10,518, a mile away from its highs. The Dow has traded in a 272-point range today, rising as high as 10,765.74 and falling as low as 10,493.61.

The

S&P 500

was down 19 to 1300. The

Russell 2000

was down 4 to 417.

The

Morgan Stanley Cyclical Index

was up 2%. The

Philadelphia Stock Exchange Forest & Paper Products Index

was up 1%.

Oil and oil service stocks were strong. The

Philadelphia Stock Exchange Oil Service Index

was up 4%, while the

Chicago Board Options Exchange Oil Index

was up 3%.

Drug stocks were getting crushed. The

American Stock Exchange Pharmaceutical Index

was down 5%.

Investors today continued to seek out beaten-down stocks in long-shunned sectors to buy. Suskind said investors have concluded that the U.S. economy is going to do just fine and the world economy is going to do OK, so they've decided to buy cyclical stocks, concluding growth stocks have had their run.

Now the question is, with technology and Internet stocks, do people go home and say this is my buying opportunity tomorrow or do they decide to unload and get out totally, asked Suskind.

The 30-year Treasury bond was up 12/32 to 95 27/32, yielding 5.55%.

On the

New York Stock Exchange

, advancers were beating decliners 2,068 to 1,030 on 967 million shares. On the

Nasdaq Composite Index

, losers were beating winners 2,264 to 1,775 on 942 million shares.

Volume was heavy.

On the NYSE, 157 issues had set new 52-week highs while 21 had touched new lows. On the Nasdaq, 79 stocks had set new highs while 65 touched new lows.

On the Big Board,

America Online

(AOL)

was most active, with 45 million shares changing hands. It was down 18 13/16, or 13%, to 120 15/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 28 million shares changing hands. It was down 1 15/16, or 5%, to 36 3/8.

1:59 p.m.: Stocks Tumble From Their Session Highs

Internet stocks were tumbling sharply helping send the tech-beefy

Nasdaq Composite Index

down 3%, while the

Dow Jones Industrial Average

has given up a huge chunk of its earlier gains.

Cyclicals, bank and transportation stocks, however, were sharply higher, but off their best levels of the session.

The Nasdaq Comp was down 67 to 2417, but off its worst levels of the session. Nasdaq heavyweights

Cisco

(CSCO) - Get Report

,

Intel

(INTC) - Get Report

,

Microsoft

(MSFT) - Get Report

and

Dell

(DELL) - Get Report

, were all in the red.

TheStreet.com Internet Sector

index was down 63 to 606.

TheStreet.com E-Commerce Index

was down 15 to 115.

Meanwhile, the blue-chip Dow was up 103 to 10,597, but well off its highs. The Dow peaked at 10,765 before easing.

The

S&P 500

was down 6 to 1313. The

Russell 2000

was down 1 to 421.

The 30-year Treasury bond was up 6/32 to 95 17/32, yielding 5.56%.

Cyclicals continued handsomely higher. The

Morgan Stanley Cyclical Index

was up 3%.

The

Dow Jones Transportation Average

was sharply higher, up 3%. The

Philadelphia Stock Exchange/KBW Bank Index

was up 3%. The

Philadelphia Stock Exchange Forest & Paper Products Index

was up 3%.

Oil service stocks and oil stocks were soaring. The

Philadelphia Stock Exchange Oil Service Index

was up 5%, while the

Chicago Board Options Exchange Oil Index

was up 3%.

Drug stocks were getting crushed. The

American Stock Exchange Pharmaceutical Index

was down 4%.

Online brokers were suffering a big hit.

Charles Schwab

(SCH)

was down 15 5/16, or 13%, to 99 1/2;

E*Trade

(EGRP)

was off 13 5/8, or 15%, to 79 1/2; and

AmeriTrade

(AMTD) - Get Report

was down 22 15/16, or 18%, to 103 5/8.

On the

New York Stock Exchange

, advancers were beating decliners 2,184 to 879 on 805 million shares. On the

Nasdaq Stock Market

, losers were beating winners 2,065 to 1,876 on 774 million shares.

On the NYSE, 155 issues had set new 52-week highs while 19x had touched new lows. On the Nasdaq, 75 issues had set new highs while new lows totaled 51.

On the Big Board,

America Online

(AOL)

was most active, with 37 million shares changing hands. It was down 16 1/4, or 12%, to 123 1/2.

On the Nasdaq,

Intel

(INTC) - Get Report

was most active, with 22 million shares changing hands. It was down 5/8 to 56 5/8

Sector Focus: Money Center Banks

Money center bank stocks were soaring in part on the heels of better-than-expected earnings from

Citigroup

(C) - Get Report

. Citigroup posted first-quarter earnings, excluding charges, of $1.04 a share. Including charges, the financial services behemoth reported earnings of $1.01 a share. The

First Call

22-analyst consensus estimate called for earnings of 87 cents. Citigroup was up 3 3/4, or 5%, to 75 3/8.

BankAmerica

(BAC) - Get Report

posted first-quarter earnings of $1.08 a share, beating the 25-analyst estimate of $1.03. It was up 2 to 75.

J.P. Morgan

(JPM) - Get Report

was up 7 3/16, or 5%, to 140 5/16.

Chase

(CMB)

, which reports earnings this week, was up 4 1/8 to 90 3/16. Today it hit a 52-week intraday high when it peaked at 91 1/8.

1:01 p.m.: Midday Musings: Stunning Rotation Continues Apace as Dow Surges, Nasdaq Plunges

12:01 p.m.: Dow Soars Past 10,700

Dow 11,000?

Believe it or not, it's not that far away. The

Dow Jones Industrial Average

broke through 10,700 level this morning and was up 229, or 2%, to 10,723, led by

J.P. Morgan

(JPM) - Get Report

. J.P. Morgan's advance accounted for 29 points of the Dow's advance.

Among some of the Dow's other notable gainers:

Alcoa

(AA) - Get Report

,

Chevron

(CHV)

and

3M

(MMM) - Get Report

.

Cyclicals were flying. The

Morgan Stanley Cyclical Index

soared 4%.

Meanwhile, Internet stocks were taking a pounding.

TheStreet.com Internet Sector

index was down 33 to 636.

TheStreet.com E-Commerce Index

was down 9 to 122.

Market breadth was decidedly positive on both the

New York Stock Exchange

and the

Nasdaq Stock Market

. Volume was also heavy.

The

S&P 500

was up 16 to 1335. The

Nasdaq Composite Index

was down 8 to 2476.

The

Russell 2000

was up 4 to 426.

The 30-year Treasury bond was down 1/32 to 95 11/32, yielding 5.57%.

Transportation stocks leapt. The

Dow Jones Transportation Average

was up 4%.

UAL

(UAL) - Get Report

, parent of

United Airlines

, was leading the Dow transports higher. It was up 3 to 86.

CNF Transportation

(CNF) - Get Report

and

CSX

(CSX) - Get Report

were also notable boosts to the average, up 3 1/2 to 43 1/2 and 3 to 46 9/16, respectively.

CNF this morning posted first-quarter earnings of 58 cents a share, excluding a gain, beating the 12-analyst estimate of 51 cents and up from the year-ago 33 cents.

Commodity-related stocks ramped. The

Morgan Stanley Commodity Related Equity Index

was up 4%.

Turning to market internals, on the NYSE, advancers were thrashing decliners 2,270 to 666 on 503 million shares. On the Nasdaq, winners were beating losers 2,146 to 1,551 on 472 million shares.

On the NYSE, 138 issues had set new 52-week highs while 15 had touched new lows. On the Nasdaq, 70 issues had set new highs while new lows totaled 40.

Tech Focus

The

Nasdaq 100

was up fractionally, while the

Morgan Stanley High-Tech 35

was down 1%. The

Philadelphia Stock Exchange Semiconductor Index

and the

Philadelphia Stock Exchange Computer Box Maker Index

were also down 1%.

Compaq

(CPQ)

was flat at 23 5/8 in the wake of

yesterday's announcement that Compaq Chief Executive Eckhard Pfeiffer and Chief Financial Officer Earl Mason resigned. Compaq's board named Chairman Ben Rosen and two vice chairmen -- Frank Doyle and Robert Ted Enloe III -- to a three-man office of the chief executive.

Compaq was most active on the Big Board, with 19.5 million shares changing hands.

On the Nasdaq, most active was

Sun Microsystems

(SUNW) - Get Report

, with 12.3 million shares changing hands. It was down 2 1/8 to 52 13/16.

Meanwhile, tech bellwethers

Cisco

(CSCO) - Get Report

and

Intel

(INTC) - Get Report

were slightly higher, while

Microsoft

(MSFT) - Get Report

and

Dell

(DELL) - Get Report

were softer.

News

BellSouth

(BLS)

is investing $3.5 billion for a 10% equity stake in

Qwest Communications

(QWST)

boosted shares of both companies. BellSouth was up 1 1/8 to 42 5/16, while Qwest advanced 3 7/8 to 86.

In earnings news,

Lexmark

(LXK)

, a computer printer producer, posted first-quarter earnings of 96 cents a share, beating the eight-analyst estimate of 88 cents and up from the year-ago 69 cents. It was down 1 3/8 to 106 5/8.

11:03 a.m.: Dow Climbs Past 10,600 as Cyclicals Jump

A positive open quickly turned sour for Internet stocks as cyberspace issues were down sharply at midmorning, while the

Dow Jones Industrial Average

was soaring, up 2% and blowing past the 10,600 mark.

Continuing last week's trend, cyclicals were jumping again, while breadth on both the

New York Stock Exchange

and

Nasdaq Stock Market

was positive.

TheStreet.com Internet Sector

index was down 26 to 643.

TheStreet.com E-Commerce Index

was down 8 to 123.

The

Nasdaq Composite Index

was up 2 to 2485.

The Dow was up 189 to 10,683.

J.P. Morgan

(JPM) - Get Report

and

Chevron

(CHV)

were leading the Dow on the upside. J.P. Morgan was up 5 1/16 to 138 3/16, while Chevron was up 3 3/4 to 102 5/8.

The

S&P 500

was up 16 to 1335. The

Russell 2000

was up 3 to 424.

The 30-year Treasury bond was up 2/32 to 95 14/32, yielding 5.57%.

Cyclicals were rallying again after their impressive performance last week. The

Morgan Stanley Cyclical Index

was up 3%.

Oil and oil service stocks were up sharply, as the

CBOE Oil Index

was up 3%, while the

Philadelphia Stock Exchange Oil Service Index

was up 5%.

The

Philadelphia Stock Exchange Forest & Paper Products Index

was up 4%.

Bank stocks were higher in part on the heels of solid earnings reports, notably from

Citigroup

(C) - Get Report

, which was up 2 3/16 to 73 7/8. The

Philadelphia Stock Exchange/KBW Bank Index

was up 3%.

Brokerage stocks, however, were not enjoying a similar fate. The

American Stock Exchange Broker/Dealer Index

was down 1%.

Transportation stocks were flying. The

Dow Jones Transportation Average

was up 3%. Utilities were soaring too. The

Dow Jones Utility Average

was up 2%.

On the NYSE, advancers were beating decliners 2,127 to 631 on 323 million shares. On the Nasdaq, winners were beating losers 1,967 to 1,434 on 319 million shares.

On the NYSE, 110 issues had set new 52-week highs while 9 had touched new lows. On the Nasdaq, 58 issues had set new highs while new lows totaled 30.

On the Big Board,

America Online

(AOL)

was most active, with 15 million shares changing hands. It was down 6 to 133 3/4.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 9 million shares changing hands. It was up 1/4 to 38 9/16.

10:02 a.m.: Dow Climbs Anew Into Record Territory

Stocks opened higher as the

Dow Jones Industrial Average

was again in record territory, shooting above the 10,500 level.

The Dow was up 86 to 10,580, with

Citigroup

(C) - Get Report

powering the blue-chip average. Citigroup posted first-quarter earnings, excluding charges, of $1.04 a share. Including charges, the financial services titan reported earnings of $1.01 a share. The

First Call

22-analyst consensus estimate called for earnings of 87 cents. Citigroup was up 2 5/16 to 73 15/16.

The

S&P 500

was up 8 to 1327. The

Nasdaq Composite Index

was up 1 to 2485. The

Russell 2000

was up 2 to 424.

The 30-year Treasury bond was down 1/32 to 95 12/32, yielding 5.57%.

Most Up at Open -- NYSE

Chase (CMB) , up 3 3/16 to 89 1/4

.

Most Up at Open -- Nasdaq

TeleBanc Financial (TBFC) , up 9 5/16 to 101

:

Merrill Lynch

initiated coverage of the Internet bank with a near-term accumulate rating and long-term buy rating.

Most Down at Open -- NYSE

Dow Jones (DJ) , down 1 1/4 to 50 1/2

.

Most Down at Open -- Nasdaq

AmeriTrade (AMTD) - Get Report, down 7 to 119

.