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
were not enough to keep the average afloat, as selling in tech components
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
, 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%.
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
wrote about this in an earlier
Also boosting the financial sector was
, 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
was down 2 to 534.
TheStreet.com Internet Index
was 11 lower to 798.
Weakness in some tech stocks was a good thing for retail shares.
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
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.
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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