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The technology sector was suffering sizable losses at midmorning, while the 30-year bond was rebounding handsomely after suffering huge losses for three straight sessions.

The benchmark 30-year Treasury bond was up 1 13/32 to 95 19/32, yielding 5.55%, thanks in part to bargain hunters.

Meanwhile, the

Nasdaq Composite Index

was down 31 to 2296.

Tech stocks were getting buried, particularly semiconductor and computer maker issues.


Philadelphia Stock Exchange Semiconductor Index

was down 6%, while the

Philadelphia Stock Exchange Computer Box Maker Index

was down 5%.

The tech stocks are weak today as news on



has affected the whole group, said Ricky Harrington, senior vice president and technical analyst at

Interstate/Johnson Lane



Merrill Lynch


Credit Suisse First Boston

today lowered their first-quarter earnings estimates on the computer maker. Meanwhile,


downgraded Compaq to neutral from buy.

Compaq was down 4 3/4, or 11%, to 36 1/4. It was the most active stock on the

New York Stock Exchange

with 33 million shares changing hands.

Over the last two or three weeks, the losses tech stocks have incurred are great enough to bring into question whether they've made intermediate-term tops, Harrington said.

"I think what the market has been telling us is that you don't need a great deal of negative news for the market to go down," he said.

The character of the market has changed lately, Harrington noted, pointing out that there has not been much leadership and that that leadership is fragmenting.


Dow Jones Industrial Average

was down 26 to 9340. The

S&P 500

was down 7 to 1238. The

Russell 2000

was down 1 to 392. Internet Sector

was up 4 to 512. E-Commerce Index

was up fractionally at 96. The

American Stock Exchange

said it will be adding

Cyberian Outpost



Digital River

(DRIV) - Get Free Report




to the e-commerce index following the close of trading on March 4, replacing

Hollywood Enterntainment



Micro Warehouse



Barnes & Noble

(BKS) - Get Free Report

. The three additions were not eligible for inclusion in the index when it was created earlier this year, Amex said.

As for the direction of the rest of the session, Harrington said it is impossible to predict what is going to happen. He said he wouldn't be surprised to see a rebound in the market. The market is down quite a bit over the last couple of days and the market could see some short covering this afternoon, he said.

Harrington said over the next 60 days the market is more susceptible to additional bad news.

Despite the plethora of negatives, there are some positives in the market.

On the plus side, the Dow hasn't broken the 9100 level and there is still money on the sidelines, Harrington said.

On the NYSE, decliners were beating advancers 1,255 to 1,220 on 225 million shares. On the

Nasdaq Stock Market

losers were beating winners 1,705 to 1,307 on 285 million shares.

On the NYSE, 38 issues had set new 52-week lows while 11 had touched new highs. On the Nasdaq, 39 issues had set new lows while new highs totaled 19.

On the Nasdaq,


(INTC) - Get Free Report

was most active on volume of 16 million shares. It was down 6 13/16, or 5%, to 121.

9:56 a.m.: Stocks Down Modestly as Bonds Surge

The 30-year Treasury bond has retraced most of the losses it suffered yesterday and was up sharply this morning as stocks opened down.

There was more good news about the economy this morning. The

Commerce Department


gross domestic product

advanced at a revised 6.1% annual rate in the fourth quarter, up from the original estimate of 5.6%.

The long bond shrugged off the news and bottom feeders flooded the market. The benchmark Treasury was up 1 5/32 to 95 11/32, yielding 5.572%.


Dow Jones Industrial Average

was down 15 to 9351. The

S&P 500

was down 4 to 1241.


Nasdaq Composite Index

was down 28 to 2298. The

Russell 2000

was down fractionally at 392. Internet Sector

was down 5 to 502. E-Commerce Index

was down fractionally at 96.

Most Up at Open -- NYSE

Albertson's (ABS) , up 1 7/8 to 56


Most Up at Open -- Nasdaq

eBay (EBAY) - Get Free Report, up 8 to 307 1/2


Most Down at Open -- NYSE

DuPont (DD) - Get Free Report, down 1/2 to 52 11/16


Most Down at Open -- Nasdaq

Intel (INTC) - Get Free Report, down 3 7/8 to 123 7/8

: A civil liberties group said yesterday it plans to file a complaint with the

Federal Trade Commission

today alleging the upcoming release of Intel's

Pentium III

chip is an unfair and deceptive trade practice.