The Monday morning bounce proved short-lived. Blue-chips went the way of their technology counterparts in afternoon trading, as the last of the Dow Jones Industrial Average rally vanished and the index ended well into the red.


Nasdaq Composite Index ended down 81 to 3897. The Dow was 26 lower to 11,194, after earlier boasting a gain of about 60 points. In early trading, stocks moved higher amid merger news and talk that the market was oversold. But the upside bias gave way to caution, and major indices began to slide backwards.

Gains in Dow components

J.P. Morgan

(JPM) - Get Report



(WMT) - Get Report

were not enough to keep the average afloat, as selling in tech components


(IBM) - Get Report




won out.

Investment bank J.P. Morgan was rising 3.1%. CFO Peter Hancock resigned on Friday, and Chief Administrative Officer Thomas Ketchum will replace Hancock immediately. The stock was adding more than 20 points to the Dow.

IBM's woes today stemmed from a report from

Goldman Sachs

, which lowered Big Blue's fourth-quarter estimates to $1.50 from $1.53 a share and moved fiscal 2000 estimates to $4.45 to $4.50 a share. Analyst Laura Conigliaro attributed the revisions to weakening currency exchange rates. The stock was down 3.7%.'s

Thomas Lepri wrote about Goldman's

views on IBM in a separate story.

Meanwhile, Hewlett-Packard slipped 5.8% after it confirmed it is in talks for a possible acquisition of


consulting arm.

wrote about this in an earlier


Also boosting the financial sector was

Goldman Sachs

(GS) - Get Report

, rising 5.1% to $130.57 and among the Big Board's top gainers, after it agreed to buy

New York Stock Exchange specialist firm

Spear Leeds & Kellogg

for $6.5 billion.

Elsewhere, the broad

S&P 500 was off 5 to 1489, while the small-cap

TST Recommends

Russell 2000

was down 2 to 534. Internet Index

was 11 lower to 798.

Sector Watch

Weakness in some tech stocks was a good thing for retail shares.


(WMT) - Get Report


Home Depot

(HD) - Get Report

were both to the plus side, receiving cash that is coming out of tech. In recent weeks, the shares have been battered due to a slowdown in consumer spending.


S&P 500 Retail Index

was rising 2.6%.

OPEC's decision to raise output by 800,000 barrels per day wasn't enough to drive down the price of oil, leaving oil stocks burning up. The

American Stock Exchange Oil & Gas Index

jumped to a new all-time high of 548.40. It was lately up 2.8%, to 547.28. Dow component


(XOM) - Get Report

was climbing 2.2%, while



was up 3.3%.

Oil's power was generating the

Philadelphia Stock Exchange Oil Service Index

, sending it up 4.4% to 141.96. Earlier, it had touched an intraday high of 142.43.

Soaring energy prices soaring have the

Dow Jones Utility Average

hitting another new all-time high level of 396.47.

Peco Energy

(PE) - Get Report

was 3.1% higher, also hitting a new all-time high of $55.94. The utility average was lately up 1.9% at 393.55.

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Oil prices are back up, and the bond market doesn't like it.

In the wake of


decision over the weekend to boost output by just 3%, oil, which tumbled 5% on Friday, is back near the 10-year high of $35.39 a barrel it hit on Thursday. With no economic data on the calendar, the negative implications for inflation are hurting bonds.

The benchmark 10-year Treasury note lately was down 8/32 at 99 27/32, pushing its yield up to 5.77%.

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