Blue-chips were going the way of their technology counterparts at midday as the Dow Jones Industrial Average morning rally started to slip away.
Screens were getting redder for tech-stock traders as the
Nasdaq Composite Index moved steadily lower, lately down 20 to 3958. The Dow was lately unchanged at 11,221, after earlier being as much as 60 points higher.
Morning gains in Dow components
were not enough to keep the average afloat as selling in tech components
Investment bank J.P. Morgan was rising 1.9% on news that its CFO Peter Hancock resigned. 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.
Thomas Lepri wrote about Goldman's
views on IBM in a separate story.
Meanwhile Hewlett-Packard was skidding 3.3% after on reports that it is negotiating a possible acquisition of
wrote about this in an earlier
Also boosting the financial sector was
, rocketing up 6.2% to $131.94 and among the Big Board's top gainers, after it agreed to buy
New York Stock Exchange
Spear Leeds & Kellogg
for $6.5 billion.
Elsewhere, the broad
S&P 500 was also falling back, lately 4 to 1498, while the small-cap
was up 1 to 536.
TheStreet.com Internet Index
was fighting to remain in the green, lately 6 higher to 815.
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 548.36. It was lately up 2.9%, to 547.93. Dow component
was climbing 2.2%, while
was up 3.4%.
Oil's power was generating the
Philadelphia Stock Exchange Oil Service Index
, sending it up 4.5% to 142.12. Earlier, it had touched an intraday high of 142.43. Due to the high price of oil, companies are increasing their capital spending budgets in order to extract more oil, giving oil services companies even more business.
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 at 395.09.
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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 9/32 at 99 26/32, pushing its yield up to 5.77%.
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