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.

Lately, the

Dow Jones Industrial Average was up 50 to 11,271, with a 3.6% gain from

J.P. Morgan

(JPM) - Get Report

. 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

IBM

(IBM) - Get Report

and

Hewlett-Packard

(HWP)

were tempering the index's gains.

This morning,

Goldman Sachs

lowered

IBM's

(IBM) - Get Report

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

PriceWaterhouseCoopers'

consulting arm.

TheStreet.com

wrote about this in an earlier

story.

The

Nasdaq was losing 9 to 3969. The tech laden index was initially held down by some merger action in the biotech sector.

Genzyme General

(GENZ)

slipped 9.8% after it entered a cash and stock deal to buy

GelTex Pharmaceuticals

(GELX)

for nearly $1 billion. GelTex popped 16.5% on the news.

The

Nasdaq Biotech Index

was 1.5% lower.

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Elsewhere, the broad

S&P 500 was lifting 0.5%, while the small cap

Russell 2000

was 0.2% higher.

TheStreet.com Internet Index

was up 1.1%.

Sector Watch

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

Wal-Mart

(WMT) - Get Report

and

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.

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

ExxonMobil

(XOM) - Get Report

was climbing 1.8%, while

Chevron

(CHV)

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.

Peco Energy

(PE) - Get Report

was 3.4% higher, also hitting a new all-time high of $55.94.

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Bonds/Economy

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

In the wake of

OPEC's

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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