(Updated from 3:04 p.m. EDT)
Investors didn't want technology today. The
Nasdaq sunk 129 to 4014, while industrial stocks rallied.
Dow Jones Industrial Average carried by
merger rumors, ended the day up 51 to 11,312.
S&P 500, was off 15 to 1492. The small-cap
Russell 2000 dropped 3 to 536.
TheStreet.com Internet Sector
index, or the
DOT, was down 23 to 846.
J.P. Morgan was up $7.81 to $167.75, adding to the positive lift to the 30-stock Dow average. Rumors circulated today suggest 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.
American Stock Exchange Broker/Dealer Index
was up 0.857%.
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 down 12.3%.
Analysts have been concerned about erosion in chip demand overall. The
Philadelphia Stock Exchange Semiconductor Index
was off 5.7%, 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 4.1%, and the
Nasdaq Telecommunications Index
Rising oil prices have contributed to a 3.7% surge in the
Philadelphia Stock Exchange Oil Service Index
. Lately, the price of crude oil futures traded on the New York Mercantile Exchange were trading at $34.66, the highest since the beginning of the 1990s.
has been halted at $7.88 today before a judge announced that the company had engaged in "willful" copyright infringement. The stock did not reopen for trading this afternoon.
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 next week, Treasury traders are mostly watching the corporate bond calendar. This fall, it is expected to be loaded with European telecom issues. 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.