Stocks Close Little Changed After a Brief Dip on the FOMC Announcement

Why is the word "own" in the word down? Clearly, investors avoided stock ownership after the Fed announced a tightening bias around 2:15 p.m. EDT. The following hour-long selloff eliminated all of this morning's 60-point rally and more -- much more. Then 3 p.m. EDT rolled around and the market went for broke, as in "broke even."

Major Indices INDEX CHANGE % VALUE Dow -0.64 0.00% 10,400.59 S&P 500 -3.25 -0.25% 1301.35 Nasdaq 3.69 0.13% 2799.66 Russell 2000 -0.61 -0.14% 426.0 TSC Internet 12.41 1.89% 668.02 BOND CHANGE PRICE YIELD 30-Year Treasury -1 8/32 99 6/32 6.157% Market data as of: 4:20 PM EDT, Tue Oct 5 1999

The 30-year Treasury bond took the last train to Clarksville, but you can't meet it at the station. It rode the express after the Fed announcement, off 1 8/32 to 99 6/32, yielding 6.16.

The blue-chippers in the Dow Jones Industrial Average wore concrete sandals and went for a walk off the pier. The big sinkers: Chevron (CHV Quote), down 1 7/16 to 84 9/16; International Paper (IP Quote), down 1 13/16 to 44 3/8; and United Technologies (UTX Quote), off 2 1/4 to 55 1/2.

Techs were stronger than most. TheStreet.com Internet Sector index was up 12.41, or 2%, to 668.02. The Philadelphia Stock Exchange Semiconductor Index, or SOX, was up 17.03, or 3%, to 548.70. The Philadelphia Stock Exchange Computer Box Maker Index was up 7.34, or 2%, to 315.02. Look out for those rascally e-twins! TheStreet.com E-Finance Index was up 1 19/32, or 3%, to 61 15/32, while its kin, TheStreet.com E-Commerce Index, was up 2.79, or 3%, to 96.81.

Oil did not have an easy day. The sector went from crude to crud. The American Stock Exchange Natural Gas Index was off 2.40, or 2%, to 140.26. The American Stock Exchange Oil & Gas Index was off 11.34, or 2%, to 490.27. The Chicago Board Options Exchange Oil Index was off 6.76, or 2%, to 286.28. Rounding out the field was the Philadelphia Stock Exchange Oil Service Sector Index, off 4.04, or 5%, to 70.16.

MCI WorldCom (WCOM Quote) may not be Dr. Evil, but the company did have its pinky firmly planted on its lower lip as it announced a buyout of Sprint (FON Quote). The price tag: "$115 billion!" The stock swap, the largest corporate buyout ever, has MCI WorldCom paying $76 in stock per Sprint share, which become the new WorldCom PCS tracking stock. The big loser in the deal is BellSouth (BLS Quote), which barged in with a hefty offer, only to be rebuffed.

WorldCom, the most-actively traded stock on the Nasdaq on 59 million shares, dropped 3 11/16, or 5%, to 67 15/16. Sprint, the fourth-most-actively traded stock on the Big Board on 12 million shares, dropped 2, or 3%, to 58 7/8.

In the next episode of As the Internet Turns, Intel (INTC Quote) announced plans to acquire IPivot for $500 million. Intel was down 3/4, or 1%, to 76 3/16.

On the New York Stock Exchange, decliners beat advancers 1,781 to 1,221 on 955 million shares. On the Nasdaq Stock Market, losers beat winners 2,098 to 1,817 on 1.192 billion shares.

On the NYSE, 144 issues set new 52-week lows while 54 touched new highs. On the Nasdaq, 118 issues set new 52-week lows while new highs totaled 92.

On the Big Board, AT&T (T Quote) was the most active, with 16 million shares changing hands. It was up 1 1/4 to 45.

Earlier...

3:04 p.m.: Stocks Turn Mostly Lower After FOMC Meeting Ends

The good news: The Fed didn't raise rates. The bad news: The Fed adopted a tightening bias.

Major Indices INDEX CHANGE % VALUE Dow -51.30 -0.49% 10,349.93 S&P 500 -7.64 -0.59% 1296.96 Nasdaq -6.74 -0.24% 2789.23 Russell 2000 -0.12 -0.03% 426.49 TSC Internet 3.76 0.57% 659.37 BOND CHANGE PRICE YIELD 30-Year Treasury -24/32 99 21/32 6.145% Market data as of: 2:55 PM EDT, Tue Oct 5 1999

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1:59 p.m.: Tech Sector Leads Climb Higher

Federal Open Market Committee. 2:15 p.m. EDT. Things are green on the way in to the announcement.

Major Indices INDEX CHANGE % VALUE Dow 74.08 0.71% 10,475.31 S&P 500 8.09 0.62% 1312.69 Nasdaq 34.33 1.22% 2830.30 Russell 2000 1.27 0.30% 427.88 TSC Internet 17.53 2.67% 673.14 BOND CHANGE PRICE YIELD 30-Year Treasury -2/32 100 12/32 6.095% Market data as of: 1:49 PM EDT, Tue Oct 5 1999

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1:03 p.m.: Midday Musings: Wall Street Holds Onto Solid Gains as Fed Decision Nears

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12:06 p.m.: Stocks Modestly Higher as Tech Sector Jumps

The index that has led the market's major proxies so far this year was leading the market higher, while on the downside, oil service stocks were getting crushed.

Major Indices INDEX CHANGE % VALUE Dow 63.63 0.61% 10,464.86 S&P 500 7.00 0.54% 1311.60 Nasdaq 24.54 0.87% 2820.51 Russell 2000 0.93 0.22% 427.55 TSC Internet 11.59 1.77% 667.20 BOND CHANGE PRICE YIELD 30-Year Treasury -3/32 100 10/32 6.088% Market data as of: 12:00 PM EDT, Tue Oct 5 1999

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11:01 a.m.: Stocks Remain Modestly Higher Ahead of FOMC

Amid a news-juicy backdrop of the announcement of the biggest takeover in history and a Federal Open Market Committee meeting, stocks were trading modestly higher at midmorning.

Major Indices INDEX CHANGE % VALUE Dow 76.61 0.73% 10,477.86 S&P 500 63.00 0.61% 10464.23 Nasdaq 7.76 0.59% 1312.36 Russell 2000 0.58 0.1% 427.19 TSC Internet 23.48 0.84% 2819.45 BOND CHANGE PRICE YIELD 30-Year Treasury -2 /32 100 14/32 6.092% Market data as of: 10:49 AM EDT, Tue Oct 5 1999

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10:01 a.m.: Stocks Open Slightly Higher Amid Sprint-MCI WorldCom Deal

Stocks opened slightly on the firm side amid the official word that MCI WorldCom (WCOM Quote) has agreed to take over Sprint (FON Quote) for $115 billion, the biggest deal in history. However, Federal Communications Commission Chairman William Kennard was out with comments on Reuters pointing out that competition has produced a price war in the long-distance world and that the deal "appears to be a surrender."

Major Indices INDEX CHANGE % VALUE Dow 29.76 0.29% 10,430.99 S&P 500 2.83 0.22% 1307.43 Nasdaq 6.11 0.22% 2802.08 Russell 2000 0.25 0.06% 426.86 TSC Internet 1.30 0.20% 656.91 BOND CHANGE PRICE YIELD 30-Year Treasury -7/32 100 7/32 6.108% Market data as of: 9:50 AM EDT, Tue Oct 5 1999