Dow Swoons Late, Giving Back All Its Gains

Net stocks continue to get hammered, with the TSC Internet index falling steeply once more.
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Continuing on the painful path that has been August, stocks stumbled badly, as the Internet sector received the

Razzie

for Worst Performance by a Sector.

So far this week,

TheStreet.com Internet Sector

index has dropped 11.9%. Leading the dogs in the index were

Inktomi

(INKT)

,

Amazon.com

(AMZN) - Get Report

,

CMGI

(CMGI)

and

RealNetworks

(RNWK) - Get Report

.

Meanwhile, even a beefy gain in

Union Carbide

(UK)

wasn't enough to keep the

Dow Jones Industrial Average

in the green. The component of the blue-chip average soared on news that it is being acquired by

Dow Chemical

(DOW) - Get Report

. Union Carbide accounted for a roughly 54-point gain in the average. Union Carbide was up 10 5/8, or 21.8%, to 59 7/16, while Dow Chemical was down 6 5/16, or 5.1%, to 118 3/8.

Sectors on the plus side (and there were some) included forest and paper product and oil service stocks. The

Philadelphia Stock Exchange Forest & Paper Products Index

jumped 3.9%, while the

Philadelphia Stock Exchange Oil Service Index

surged 2.5%.

Investors were loath to step in and buy stocks ahead of the much-anticipated release of the July

employment report

, which is slated to be released at 8:30 a.m. EDT Friday.

In the Treasury market, the 30-year Treasury bond advanced thanks to the announcement that the

Treasury Department

isn't going to issue a 30-year bond in November.

On the

New York Stock Exchange

, decliners thumped advancers 1,960 to 1,007 on 785.9 million shares. On the

Nasdaq Stock Market

, losers clubbed winners 2,733 to 1,195 on 954.6 million shares.

On the NYSE, 174 issues set new 52-week lows while 35 touched new highs. On the Nasdaq, 140 issues set new 52-week lows while new highs totaled 40.

On the Big Board,

America Online

(AOL)

most active with 24.2 million shares changing hands. It was down 1 3/8 to 87 7/16.

On the Nasdaq,

Intel

(INTC) - Get Report

was most active with 37.2 million shares changing hands. It was up 3/16 to 84 15/16.

Market data above are preliminary. Updated numbers and analysis will follow in the Market Roundup.

Earlier...

3:06 p.m.: Dow Remains in Positive Territory Amid Boost From Union Carbide

Union Carbide

(UK)

continued to sizzle and smoke as the market reacted to news about its fusion with

Dow Chemical

(DOW) - Get Report

.

1:55 p.m.: Stocks Mostly Lower as Internet Sector Tumbles Further

Market breadth continued to be negative this afternoon while Internet stocks were suffering another sizable hit as traders await Friday's July key

employment report

.

1:09 p.m.: Midday Musings: Market Enjoys a Bounce, However Shaky

11:51 a.m.: Dow Far Outpacing Other Major Indices

Thanks in large part to the skyrocketing stock of

Union Carbide

(UK)

, the

Dow Jones Industrial Average

was outpacing the rest of the market's major averages by a wide margin late this morning, while Internet stocks continued mired in the red.

11:00 a.m.: Stocks Mostly Higher as Internet Sector Tumbles Anew

Those hoping for a snap-back in Internet stocks have been sorely disappointed as conditions continued to decay for the sector overall.

9:57 a.m.: Stocks Open Mostly Higher Amid Union Carbide/Dow Chemical Deal

Stocks were mostly higher early on while

Dow Chemical

(DOW) - Get Report

is buying

Dow Jones Industrial Average

component

Union Carbide

(UK)

in a stock swap valued at about $9.3 billion.