At the midday mark, the stock market's major indices were moving to the upside, after merger action and Wall Street's comments on Big Blue put pressure on tech shares in the early going.
Dow Jones Industrial Average was up 50 to 11,271, with a 3.6% gain from
. The investment bank was rallying on news that its CFO Peter Hancock resigned on Friday. Chief Administrative Officer Thomas Ketchum will replace Hancock immediately. TheStreet.com wrote about
the changes on Friday.
Although the Dow was in positive territory, blue-chip losses from
were tempering the index's gains.
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.
Discounting the negative impact of the exchange ratios, Conigliaro upped her third-quarter growth estimate to 10.3% from 9.7% due to the strength in semiconductors, Unix servers and disk storage. IBM was lately off 2.9%.
Hewlett-Packard was skidding 3.1% after on reports that it is negotiating a possible acquisition of
wrote about this in an earlier
Nasdaq was losing 9 to 3969. The tech laden index was initially held down by some merger action in the biotech sector.
slipped 9.8% after it entered a cash and stock deal to buy
for nearly $1 billion. GelTex popped 16.5% on the news.
Nasdaq Biotech Index
was 1.5% lower.
Elsewhere, the broad
S&P 500 was lifting 0.5%, while the small cap
was 0.2% higher.
TheStreet.com Internet Index
was up 1.1%.
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.
The S&P 500 Retail Index was bouncing 2.7%.
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 2.7% to a new all-time high of 548.14. Dow component
was climbing 1.8%, while
was up 3.2%.
Oil's power was generating the
Philadelphia Stock Exchange Oil Service Index
, sending it up 4.6% to a new all-time high of 142.27.
Soaring energy prices have the
Dow Jones Utility Average
hitting another new all-time high level of 396.47.
was 3.4% higher, also hitting a new all-time high of $55.94.
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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 7/32 at 99 27/32, pushing its yield up to 5.768.
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