By Cecily Fraser, CBS MarketWatch
                  Last Update: 10:20 AM ET Oct 29, 1999
                                                                Tech Report
                                                             Hardware Report
 

                 NEW YORK (CBS.MW) -- The tech-heavy Nasdaq Composite soared
                 into record territory Friday morning as Intel led another day of gains for
                 chip stocks after the company gave the market a reassuring outlook.

                 The Nasdaq
                 Composite advanced
                 62.82 points, or 2
                 percent, to 2938.04,
                 cruising past the Oct.
                 11 closing high of
                 2915.95.

                 In blue-chip stocks,
                 the Dow Jones
                 Industrial Average rose 32.30 points to 10655.46. See Market Snapshot

                 Thanks to Intel, the Philadelphia Semiconductor Index jumped 3.5
                 percent, on top of Thursday' mighty 6 percent gain.

                 Intel (INTC: news, msgs), which will become a component stock of the
                 Dow average on Monday, advanced 4 5/16 to 76 1/2 one day after a
                 positive meeting with analysts. The chipmaker said it saw little or no
                 impact on its business from Y2K-related issues. See full story.

                 Shares of memory chipmaker Micron Technology (MU: news, msgs) rose
                 3 3/4 to 71 3/8 after Merrill Lynch analyst Joe Osha reiterated a
                 near-term "buy" rating on the company, saying that he believes the tight
                 supply situation in the DRAM market will continue through 2000.

                 Chip-equipment maker Applied Materials (AMAT:
                 news, msgs) was also a standout, up 4 1/2 to 88
                 1/4, while Teradyne (TER: news, msgs) jumped 2
                 1/8 to 36 5/16.

                 PC makers rallied alongside the chip group as the
                 Goldman Sachs Computer Hardware Index shot up
                 3.2 percent. See Hardware Report.

                 Shares of IBM (IBM: news, msgs) showed the
                 greatest strength, up 1 13/16 to 96 3/4, after
                 Prudential Securities initiated coverage of the stock
                 with an "accumulate" rating and a 12-month price
                 target of $115 per share.

                 Dell Computer (DELL: news, msgs) gained 1 1/2
                 to 40, while hardware maker Sun Microsystems
                 (SUNW: news, msgs) rose 6 to 104 5/8.

                 Investors also bid up Internet stocks, turning to
                 bellwethers like America Online (AOL: news,
                 msgs) after the company announced a 2-for-1 stock split, its second such
                 move in 1999. Shares climbed 3 1/2 to 130.

                 The Goldman Sachs Internet Index surged 2.8 percent. The Amex
                 Internet Index marched up 3.3 percent. Yahoo (YAHOO: news, msgs)
                 rose 3 11/16 to 178 11/16, while Amazon.com (AMZN: news, msgs)
                 picked up 1/8 to 71 1/4.

                 Shares of networking equipment maker Cisco Systems rose 2 5/16 to 73
                 1/4, lifting the Amex Networking Index up 1.8 percent.

                 Elsewhere, software stocks were buoyed by gains in Compuware
                 (CPWR: news, msgs) and Microsoft (MSFT: news, msgs). The CBOE
                 Software Index was up 3 percent.