Major Indices Close Solidly Lower Despite Jump in Internet Sector

In late trading, the Nasdaq erased the gains it had posted all session.
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The

Dow Jones Industrial Average

stayed low all day and then fell like a drunk in platform shoes. On the way down, the Dow grabbed the

Nasdaq Composite Index

and dragged it down too.

TheStreet.com Internet Sector

index and

TheStreet.com E-Commerce Index

were the only ones left standing tall when

Last Dance

played. The Internet Sector was up 8.57 to 566.43, while the E-Commerce Index was up 2.04 to 91.40.

The Internet trinity of

Amazon.com

(AMZN) - Get Report

,

Yahoo!

(YHOO)

and

America Online

(AOL)

was a holy terror today. Amazon finished up 3 15/16 to 113 1/8, while Yahoo! finished up 6 1/4 to 145 1/16 and AOL, which was most active on the

New York Stock Exchange

with 20 million shares traded, finished up 1 1/8 to 98 5/8.

Two stocks drank heavily this afternoon.

Dell

(DELL) - Get Report

guzzled up 3 7/16 to 44 9/16 on the strength of its second-quarter earnings and the positive views of a six-pack of analysts, while

Lycos

(LCOS)

shot up 2 5/8 to 44 3/4 after chasing solid earnings with good news from two analysts. On the

Nasdaq Stock Market

, Dell was the most active, with 96 million shares changing hands.

Lucent Technologies

(LU)

continued to merge like a cab in midtown traffic -- quickly and often. Today it bought

Excel Switching

(XLSW)

for $1.7 billion in stock. Since June, the company has announced over $5 billion worth of deals. Lucent stayed stuck in traffic, down 2 5/16, or 3%, to 64 3/16, while Excel ran all the yellows, up 7 1/16, or 26%, to 34 5/8.

Innodata

(INOD) - Get Report

announced a 3-for-1 split and its board's $1 million share buyback program. The moves brought the stock up 11 9/16, or 78%, to 26 3/8, reaching a 52-week high in the process.

Saks

(SKS)

moved from Fifth Avenue to Avenue C after the company said it would not meet Wall Street expectations for 1999.

PaineWebber

cut the stock to neutral from buy. The stock, which traded a heavy 10.8 million shares, was down 5 15/16, or 26%, to 17 3/16.

On the NYSE, decliners were beating advancers 1,777 to 1,177 on 681 million shares. On the Nasdaq, losers were beating winners 2,166 to 1,719 on 1.038 billion shares.

On the NYSE, 60 issues had set new 52-week lows while 50 had touched new highs. On the Nasdaq, 59 issues had set new 52-week lows while new highs totaled 76.

Earlier...

2:59 p.m.: Stocks Remain Mostly Lower Amid Jump in Internet Sector

Stocks were mostly down in the dumps this afternoon, as glum investors were forced to admit the recent market gains were probably not so well deserved.

2:21 p.m.: Dollar's Drop Vs. Yen Continues to Suppress Blue-Chips

Bad sushi? Possibly. The blue-chippers were still looking green after the dollar's fall against the Japanese yen.

1:29 p.m.: Midday Musings: Wall Street's Raucous Celebration Fades Into Uncertainty

12:40 p.m.: Nasdaq Climbs as Dow Drops

A lot of stock symbols are feeling inadequate this morning. Their problem: letter envy. It seems that the three-letter boys on the Big Board can't quite measure up to their four- and five-letter friends on the

Nasdaq Composite Index

. The

Dow Jones Industrial Average

needs to take Viagra at lunch. The Nasdaq is doing just fine, thank you.

11:28 a.m.: Dollar-Yen Depresses Blue-Chips

With many players looking ahead to next week's

Federal Open Market Committee

meeting and others looking back a recent favorable inflation data, traders came eyeball to eyeball with another issue today: the dollar. With the greenback tumbling vs. the Japanese yen, stocks opened on the downside and blue-chip averages remain in retreat as the morning progressed.

9:58 a.m.: Stocks Open Lower Amid Profit-Taking

Stocks were broadly lower as traders snapped up profits from the recent run-up.