The Dow Jones Industrial Average is a baseball today, launched into the air by J.P. Morgan's (JPM) - Get JPMorgan Chase & Co. (JPM) Report big shoulders. The Nasdaq Composite Index is David Cone's separated shoulder.
Chatter today centered on rumors of a J.P. Morgan purchase, which catapulted the Dow 100 points higher, while weakness in semiconductor stocks is causing pressure on the tech-heavy Comp.
The Dow was lately off its highs, but still up 79 to 11,341, while the Nasdaq lost 94 to 4049. The
S&P 500, was lately off 8 to 1499. The small-cap
Russell 2000 dropped 3 to 537.
TheStreet.com Internet Sector
index, or the
DOT, was lately down 16 to 853.
J.P. Morgan was lately up $6 to $166, adding 35 points of positive lift to the 30-stock average. The rumors circulated suggested J.P. Morgan is in talks with
, according to the German weekly
. J.P. Morgan officials declined comment, while Deutsche Bank officials were unavailable for comment.
Amex Broker/Dealer Index
was lately up 2%.
On the other end, however, were the semiconductors, and more broadly, the rest of the technology sector.
DLJ analyst Boris Petersik downgraded
to underperform from buy, citing price
weakness in the market for DRAM (dynamic random access memory). Micron was lately down 10.6%.
Analysts have been concerned about erosion in chip demand overall. The
Philadelphia Stock Exchange Semiconductor Index
was lately off 4.8%, thanks to significant losses in
The rest of the technology sector was getting tattooed with the chip stocks. The
Philadelphia Stock Exchange Computer Box Maker Index
was down 2.7%, and the
Nasdaq Telecommunications Index
Treasuries are marginally lower on little news, retreating further from the lowest-of-the-year yields they reached at the end of last week.
The benchmark 10-year Treasury note lately was down 8/32 at 100 6/32, lifting its yield to 5.726%.
With no major economic releases slated till the
retail sales report and the
Producer Price Indices nest week, Treasury traders are mostly watching the corporate bond calendar. This fall, it is expected to be loaded with European telecom issues, but as yet it isn't clear how much of the $40 billion of expected issuance will come in September.
Also of interest today,
Fed Governor Edward Kelley, in an interview with
Market News International
, said he continues to see the economy as running a higher risk of too-high inflation than of too-slow growth. A recent spate of weak economic reports has some economists thinking that the Fed, in its pronouncements after meetings of the
Federal Open Market Committee, might start describing those risks as balanced, indicating a lower likelihood of future rate increases.
Fed funds futures are discounting somewhat higher odds of a rate hike by the end of the year today than they were yesterday. The odds remain below 25% however.