Stocks were modestly lower at midmorning, as oil and oil service stocks were among the few bright spots in the market.

The

Dow Jones Industrial Average

was down 39 to 9892.

United Technologies

and

Caterpillar

(CAT) - Get Report

were the biggest gainers in the average, up 1 3/8 to 131 and 2 9/16 to 46 9/16, respectively. United Technologies is selling its automotive unit

UT Automotive

for $2.3 billion to

Lear

(LEA) - Get Report

.

"I think it doesn't look like it's ready to sustain a move above 10,000," said Louis Todd, head of equities trading at

J.C. Bradford

. He said he sees the market backing and filling over the next few days.

Todd said it looks like it's going to be a good month in terms of money inflows into the market, a plus for the market.

The

Philadelphia Stock Exchange Oil Service Index

was up 3%, while the

American Stock Exchange Oil & Gas Index

was up 2%.

The

S&P 500

down 10 to 1297. The

Nasdaq Composite Index

was down 18 to 2421. The small-cap

Russell 2000

was down 2 to 398.

TheStreet.com Internet Sector

index was up fractionally at 605.

Inktomi

(INKT)

will enter

TheStreet.com Internet Sector

index after the close of trading today, the

Philadelphia Stock Exchange

said. Inktomi is replacing

Netscape

(NSCP)

, whose acquisition by

America Online

(AOL)

is expected to be completed today.

Meanwhile,

TheStreet.com E-Commerce Index

was down 1 to 109.

In other index-reconfiguration news,

Beyond.com

(BYND) - Get Report

will enter TheStreet.com E-Commerce Index after today's close, the

American Stock Exchange

said. Beyond.com is replacing

N2K

(NTKI)

, whose merger with fellow E-Commerce Index component

CDnow

(CDNW)

is expected to be completed today. The merged CDnow/N2K will remain in the index under its new symbol, CDNWD.

The 30-year Treasury bond was down 5/32 to 96 20/32, yielding 5.48%.

On the

New York Stock Exchange

, decliners were beating advancers 1,492 to 995 on 216 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,756 to 1,317 on 266 million shares.

On the NYSE, 32 issues had set new 52-week highs while 30 had touched new lows. On the Nasdaq, 38 issues had set new lows while new highs totaled 32.

On the Big Board,

Compaq

(CPQ)

was most active, with 7 million shares changing hands. It was up 13/16 to 33 1/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active with 11 million shares changing hands. It was down 1 3/16 to 43 3/16.

Company Focus: Eli Lilly

Prozac's

dark quarter continues to depress

Eli Lilly

(LLY) - Get Report

investors.

SG Cowen

drug analyst Steve Scala said this morning that his $2.32-a-share earnings estimate on Lilly for the year might be 2 cents high.

Lilly was down 4 3/16 to 89 7/8.

Prozac sales are being hurt by

Celexa

, the new anti-depressant from

Forest

(FRX)

and

Warner-Lambert

(WLA)

. Also, there is less demand this quarter because there was heavy stocking of Prozac by wholesalers in the fourth quarter.

Merrill Lynch

analyst Steve Tighe made the same call last week, which put pressure on the stock. He says that in the first quarter, Prozac is likely to be flat from last year's first-quarter sales of $617.6 million.

--

Jesse Eisinger

9:54 a.m.: Stocks Open Mostly Lower

Stocks were mostly lower in the early going, while the

Federal Trade Commission

approved an antitrust settlement with

Intel

(INTC) - Get Report

.

Intel was last up 1/2 to 120 13/16.

The

Dow Jones Industrial Average

was up 3 to 9933. The

S&P 500

was down 3 to 1304.

The

Nasdaq Composite Index

was down 5 to 2434. The

Russell 2000

was down fractionally at 399.

TheStreet.com Internet Sector

index was up 5 to 609.

Inktomi

(INKT)

will enter

TheStreet.com Internet Sector

index after the close of trading today, the

Philadelphia Stock Exchange

said. Inktomi is replacing

Netscape

(NSCP)

, whose acquisition by

America Online

(AOL)

is expected to be completed today.

TheStreet.com E-Commerce Index

was down fractionally at 110.

The 30-year Treasury bond was down 1/32 to 96 24/32, yielding 5.47%.

Most Up at Open -- NYSE

Compaq (CPQ) , up 1 1/16 to 33 7/16

.

Most Up at Open -- Nasdaq

Bottomline (EPAY) - Get Report, up 5 1/2 to 74

.

Most Down at Open -- NYSE

IBM (IBM) - Get Report, down 1 7/16 to 179 9/16

.

Most Down at Open -- Nasdaq

VerticalNet (VERT) , down 6 1/16 to 84

.