Tech Stocks Continue to Rally

The move higher began after IBM reported strong earnings.
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Technology stocks led the market on the upside this afternoon on the heels of yesterday's robust earnings report from

IBM

(IBM) - Get Report

.

IBM, a

Dow Jones Industrial Average

component, was up 23 3/4, or 14%, to 195 5/8. The Dow was up 92 to 10,674.

The

S&P 500

was up 12 to 1348. The

Nasdaq Composite Index

was up 52 to 2541. The

Russell 2000

was up 2 to 428.

TheStreet.com Internet Sector

index was up 19 to 655.

The 30-year Treasury bond was down 29/32 to 95 4/32, yielding 5.59%.

On the

New York Stock Exchange

, advancers were beating decliners 1,481 to 1,405 on 617 million shares. On the

Nasdaq Stock Market

, winners were beating losers 2,054 to 1,645 on 745 million shares.

On the NYSE, 57 issues had set new 52-week highs while 20 had touched new lows. On the Nasdaq, 69 issues had set new highs while new lows totaled 38.

On the Big Board,

America Online

(AOL)

was most active, with 19 million shares changing hands. It was up 4 3/4 to 147 1/2.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 25 million shares changing hands. It was up 2 13/16 to 41 5/16.

Company Focus: American Express

Financial services titan

American Express

(AXP) - Get Report

this afternoon reported first-quarter earnings of $1.26 a share, a penny better than the

First Call

13-analyst estimate and up from $1.11 in the year-ago period, which excludes items.

American Express was up 2 1/8 to 137. As of yesterday's close, American Express has risen roughly 32% in 1999.

The company's return on equity was 25.1%. First-quarter results reflected strong earnings and revenue growth at the company's

Travel Related Services

and

American Express Financial Advisors

businesses, the company said.

American Express' net revenues totaled $4.5 billion in the first quarter, up 11.8% from $4 billion in the year-ago period.

1:09 p.m.: Midday Musings: IBM Single-Handedly Powers Dow, Leads Other Techs Higher

12:35 p.m.: Nasdaq Leads Charge Higher

Juiced up by a robust profit report from

IBM

(IBM) - Get Report

, the major stock gauges were handsomely higher, with the

Nasdaq Composite Index

leading the way, up 1.5%.

The Nasdaq Comp was up 37 to 2526.

The

Dow Jones Industrial Average

was up 70 to 10,651.

The

S&P 500

was up 8 to 1344.

The

Russell 2000

was down fractionally to 427.

TheStreet.com Internet Sector

index was up 10 to 646.

On the

New York Stock Exchange

, decliners were beating advancers 1,390 to 1,381 on 402 million shares. On the

Nasdaq Stock Market

, winners were beating losers 1,910 to 1,486 on 513 million shares.

On the NYSE, 46 issues had set new 52-week highs while 13 had touched new lows. On the Nasdaq, 57 issues had set new highs while new lows totaled 29.

The 30-year Treasury bond was down 13/32 to 95 20/32, yielding 5.551%.

On the Big Board,

America Online

(AOL)

was most active, with 13.8 million shares changing hands. It was up 1 13/16 to 144 9/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 17.2 million shares changing hands. It was up 2 11/16, or 7%, to 41 1/8.

Tech Focus

IBM was up 22 5/8 to 194 1/2, off its peak of 198 1/8. IBM after the close reported first-quarter earnings of $1.55 a share, blowing by the 20-analyst

First Call

estimate of $1.41 and up from the year-ago $1.06.

TheStreet.com

wrote about IBM's earnings report in a story

last night.

The

Nasdaq 100

was up 1.7%, while the

Morgan Stanley High-Tech 35

was up 2.6%. The

Philadelphia Stock Exchange Semiconductor Index

was up 0.1%, lagging after its dramatic runup yesterday. The

Philadelphia Stock Exchange Computer Box Maker Index

was up 6.1%.

Lattice Semiconductor

(LSCC) - Get Report

was getting hammered, down 12 5/8, or 21.6%, to 46. Yesterday

Advanced Micro Devices

(AMD) - Get Report

sold its

Vantis

division to Lattice for $500 million in cash. AMD was up 1/8 to 16 15/16.

Qualcomm

(QCOM) - Get Report

was giving back a little bit of the whopping gains it enjoyed yesterday. It was down 5 1/4 to 189 1/2. Yesterday, Qualcomm soared 54 7/16 to 195 1/16.

11:15 a.m.: IBM-Inspired Rally Loses Steam

After popping sharply early on, this morning's

IBM

(IBM) - Get Report

earnings-inspired rally has lost some steam.

IBM, a

Dow Jones Industrial Average

component, was up 21 15/16, or 13%, to 193 13/16. IBM peaked at 198 1/8. IBM after the close reported first-quarter earnings of $1.55 a share, flying past the 20-analyst

First Call

estimate of $1.41 and up from the year-ago $1.06.

TheStreet.com

wrote about IBM's earnings report in a story

last night.

The Dow was up 106 to 10,687. The Dow peaked at 10,712.58.

The

Nasdaq Composite Index

was up 45 to 2534.

The

S&P 500

was up 11 to 1347. The

Russell 2000

was up 1 to 428.

TheStreet.com Internet Sector

index was up 17 to 653.

The IBM news helped boost the

Philadelphia Stock Exchange Computer Box Maker Index

7%.

The 30-year Treasury bond was down 14/32 to 95 19/32, yielding 5.55%.

Commodity-related stocks were mostly softer. The

Philadelphia Stock Exchange Forest & Paper Products Index

was down 1%, while the

Philadelphia Stock Exchange Gold and Silver Index

slumped 1%. The

Morgan Stanley Commodity-Related Equity Index

was also down 1%.

Market internals were positive.

On the

New York Stock Exchange

, advancers were beating decliners 1,350 to 1,253 on 275 million shares. On the

Nasdaq Stock Market

, winners were beating losers 1,806 to 1,286 on 353 million shares.

On the NYSE, 37 issues had set new 52-week highs while 7 had touched new lows. On the Nasdaq, 50 issues had set new highs while new lows totaled 19.

On the Big Board,

America Online

(AOL)

was most active, with 11 million shares changing hands. It was up 4 5/8, or 3%, to 147 3/8.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 14 million shares traded. It was up 2 13/16, or 6%, to 40 5/8.

10:02 a.m.: IBM Surges 15% and Techs Follow

Strong earnings from

IBM

(IBM) - Get Report

and other companies helped boost stocks early on as the major market averages soared.

IBM after the close Wednesday reported first-quarter earnings of $1.55 a share, flying past the 20-analyst

First Call

estimate of $1.41 and up from the year-ago $1.06.

TheStreet.com

wrote about IBM's earnings report in a story

last night.

IBM, a

Dow Jones Industrial Average

component, was up 26 1/8, or 15%, to 198.

The Dow was up 128 to 10,709. The

S&P 500

was up 13 to 1348. The

Nasdaq Composite Index

was up 72 to 2561. The

Russell 2000

was up 5 to 432.

TheStreet.com Internet Sector

index was up 30 to 666.

The 30-year Treasury bond was down 7/32 to 95 26/32, yielding 5.54%.

On the earnings front recently,

McDonald's

(MCD) - Get Report

posted first-quarter earnings of 29 cents a share, in line with the 15-analyst estimate and up from the year-ago 26 cents. McDonald's was up 3/8 to 45 3/4.

Most Up at Open -- NYSE

IBM (IBM) - Get Report, up 25 3/8 to 197 1/4

.

Most Up at Open -- Nasdaq

CNet (CNET) - Get Report, up 28 15/16 to 148 11/16

: CNet after the close posted earnings that blew past Wall Street earnings estimates for the first quarter and announced a 2-for-1 stock split.

Most Down at Open -- NYSE

Chase (CMB) , down 1 11/16 to 81 3/4

.

Most Down at Open -- Nasdaq

ADAC Labs (ADAC) , down 5 11/16 to 6 15/16

: The company warned it sees lower revenue for the rest of the fiscal year due to a new company revenue recognition policy and weaker demand.