Major Indices Mired in Negative Territory

The Treasury market has fallen further.
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In the eye-popping news department,

CBS

(CBS) - Get Report

President and Chief Executive Officer Mel Karmazin said he would like to acquire rival network

NBC

and would "overpay" for it, according to headlines from

Reuters

.

Meanwhile, back in the stock market, stocks recovered modestly from an early plunge as a couple of sour bits of news helped send stocks down sharply out of the gate.

Karmazin made the remarks at an advertisers' conference in New Orleans,

Reuters

said. NBC is owned by

General Electric

(GE) - Get Report

. Shares of GE were down 15/16 to 100 1/16, while CBS was down 5/8 to 36 13/16.

Further weakness in the bond market and news that

Morgan Stanley Dean Witter

chief U.S. investment strategist Byron Wien cut his recommended stock allocation in his model portfolio to 85% from 90% and raised cash to 15% from 10% weighed on stocks.

The benchmark 30-year Treasury bond was down 28/32 to 95 11/32, yielding 5.56%.

The

Dow Jones Industrial Average

was down 61 to 9338. At its early nadir, the Dow had fallen nearly 70 points to 9329.82 before bouncing.

The

S&P 500

was down 11 to 1242.

The

Nasdaq Composite Index

was down 15 to 2325. The Nasdaq Comp bottomed at 2311.96, down 27.42 from yesterday's close. The small-cap

Russell 2000

was down 1 to 394.

TheStreet.com Internet Sector

was up 2 to 508.

TheStreet.com E-Commerce Index

was up fractionally at 96.

Amazon.com

(AMZN) - Get Report

, which is a component of both indices, was up 10, or 9%, to 121, on an upgrade from

BancBoston Robertson Stephens

, which upped its rating to strong buy from buy. Meanwhile, today is the last day of the

BancBoston Robertson Stephens Tech '99 Conference

.

TheStreet.com

has provided

coverage of the conference throughout the week.

On the

New York Stock Exchange

, decliners were beating advancers 1,629 to 860 on 205 million shares. On the

Nasdaq Stock Market

losers were beating winners 1,781 to 1,252 on 253 million shares.

On the NYSE, 67 issues had set new 52-week lows while 8 had touched new highs. On the Nasdaq, 39 issues had set new lows while new highs totaled 21.

Among the stock market's notable losers today was

BMC Software

(BMCS)

, which tumbled 5 5/16, or 11%, to 41 11/16.

TheStreet.com's

Herb Greenberg wrote about the company

this morning. Also

Prudential Securities

downgraded BMC Software to accumulate from strong buy.

On the Big Board,

America Online

(AOL)

was most active with 7 million shares changing hands. It was down 7/8 to 86 11/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active on volume of 12 million shares. It was down 1 1/2 to 81 3/4. Steven Milunovich, an analyst at

Merrill Lynch

, had cautious comments on Dell and the personal computer industry in general. Milunovich in a note said vendors' "growth objectives the next few years will prove hard to achieve, perhaps resulting in pricing pressure." As for Dell, he said, "Dell's superior model affords some protection but valuation remains an issue."

10:05 a.m.: Stocks Extend Wednesday's Losses

News that

Morgan Stanley Dean Witter

chief U.S. investment strategist Byron Wien cut his recommended stock allocation in his model portfolio to 85% from 90% and raised cash to 15% from 10% helped send stocks tumbling early on, piling on to losses suffered yesterday.

The

Dow Jones Industrial Average

was down 42 to 9358. The

S&P 500

was down 8 to 1245.

The

Nasdaq Composite Index

was down 16 to 2324. The

Russell 2000

was down 1 to 394.

TheStreet.com Internet Sector

was down 1 to 504.

TheStreet.com E-Commerce Index

was up 1 to 96.

The benchmark 30-year Treasury bond was getting whacked again. It was down 21/32 to 95 19/32, yielding 5.56%, piling on to huge losses suffered in the last couple of sessions.

Meanwhile, Steven Milunovich, an analyst at

Merrill Lynch

, had cautious comments on

Dell

(DELL) - Get Report

and the personal computer industry in general. Milunovich in a note said that he was concerned that vendors' "growth objectives the next few years will prove hard to achieve, perhaps resulting in pricing pressure." As for Dell, he said, "Dell's superior model affords some protection but valuation remains an issue."

Dell was down 1 9/16 to 81 5/8.

Most Up at Open -- NYSE

Fort James , up 15/16 to 30 1/4

:

PaineWebber

raised its rating on Fort James to attractive from neutral.

Most Up at Open -- Nasdaq

Amazon.com (AMZN) - Get Report, up 5 11/16 to 116 5/8

:

BancBoston Robertson Stephens

upped its rating on Amazon.com to strong buy from buy.

Most Down at Open -- NYSE

American International Group (AIG) - Get Report, down 1 3/4 to 112 1/4

.

Most Down at Open -- Nasdaq

BMC Software (BMCS) , down 4 3/8 to 42 5/8

:

TheStreet.com's

Herb Greenberg

wrote about the company

this morning. Also

Prudential Securities

downgraded BMC Software to accumulate from strong buy.