NEW YORK (CNNfn) - The Nasdaq composite index soared to another record close Thursday, fueled by gains from technology firms such as MCI WorldCom and Network Solutions.
But the Dow Jones industrial average fell amid weakness in the bond market following a poor auction of 30-year Treasury bonds.
The Nasdaq composite index rallied 122.39 points, or 2.8 percent, to 4,485.63, surpassing Tuesday's all-time high close of 4,427.50. The daily point gain is the fifth largest on record.
However, the Dow Jones industrial average fell 55.53 points to 10,643.63, while the S&P 500 index rose 5.12 points to 1,416.83.
"Momentum investors are looking for something that works. What works is technology," said Hugh Johnson, chief investment officer at First Albany.
 On the New York Stock Exchange, declines outnumbered advances 1,799 to 1,229 on trading volume of 1 billion shares. On the Nasdaq, advances narrowly led declines 2,185 to 2,009, with volume of 1.82 billion shares.
Treasury prices fell sharply, with the benchmark 30-year bond losing more than a full point, raising its yield to 6.42 percent from 6.31 percent late Wednesday.
The dollar rose against both the yen and the euro.
A tale of two markets
Analysts said the same theme is apparent in the market this year as last year with the Nasdaq continuing to outperform blue-chip stocks and the broader market. So far this year, the Nasdaq is up about 10 percent while the Dow is off about 7 percent. Among broader indexes, the S&P 500 is off about 3.5 percent and the Russell 2000, which tracks small cap issues, is up about 7 percent.
"Technology is where there's momentum," said Larry Rice, chief strategist at Josephthal & Co. "That's been the norm and it's getting worse. People are going to go where they can make money."
With a strong economy that shows no signs of a slowdown, and fears of more rate hikes from the Federal Reserve, market strategists say it's not surprising that investors are putting their money into sectors which offer the most growth potential, such as Internet stocks, biotechs and telecommunications, and staying away from interest-rate sensitive stocks.
 "People are concerned with what the Fed's course of action will be with the back-up in interest rates," said Bill Meehan, chief market analyst at Cantor Fitzgerald.
First Albany's Johnson said market conditions are worse this year in comparison to last year. "The market is not doing well. At long last, it is doing what it should do in responding to the rises in interest rates."
MCI, Network Solutions bolster Nasdaq
Investors focused on the latest batch of earnings. MCI WorldCom (WCOM: Research, Estimates) rose 1-11/16 to 49-13/16, after posting fourth-quarter earnings of 41 cents a diluted share, in line with expectations. The company, one of the leading telecommunications firms, is one of the Nasdaq composite's most influential issues.
Network Solutions (NSOL: Research, Estimates) also contributed to the composite index's gains, advancing 36-5/16, or more than 14 percent, to 292-5/16. The Internet address registry reported fourth-quarter earnings of 25 cents a share, against 11 cents in the year-earlier period. Analysts surveyed by First Call were expecting earnings of 23 cents a share.
Supporting both the blue-chip index and the Nasdaq were technology bellwethers Intel (INTC: Research, Estimates), rising 3 to 107-5/8, and Microsoft (MSFT: Research, Estimates), gaining 2 to 106. IBM (IBM: Research, Estimates) also helped the Dow, adding 1-3/4 to 119-1/8.
But RCN (RCNC: Research, Estimates) fell 5-7/16 to 65-1/16, after reporting a fourth-quarter net loss of $1.78 per share, against $1.01 in the year-earlier period. RCN provides telecom services on fiber-optic networks.
The Nasdaq was also weakened by CMGI (CMGI: Research, Estimates). Shares of the Internet investment company retreated 2-11/16 to 117-13/16 after it said it will buy Web auction site uBid (UBID: Research, Estimates) for about $407 million in stock. uBid jumped 3-11/32, or more than 12 percent, to 30-1/32.
After the market close, Dell Computer (DELL: Research, Estimates) reported fiscal fourth-quarter profit of 16 cents per share, in line with the company's recently-lowered expectations.
During regular trading hours, Dell rose 3-7/32 to 38-25/32. In after-hours trade, it slipped to 38-1/4, according to Instinet.
Among the day's top performers, Seagram (VO: Research, Estimates) gained 4-3/8 to 60-3/16. The media and beverage company Thursday posted better-than-expected fiscal second-quarter earnings of $1.19 per diluted share, excluding one-time costs, against consensus estimates of $1.04.
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