Market Update: Stocks Little Changed; Goldman Sachs Soaring on Purchase of Spear Leeds - TheStreet

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

J.P. Morgan

(JPM) - Get Report

and

Wal-Mart

(WMT) - Get Report

were not enough to keep the average afloat as selling in tech components

IBM

(IBM) - Get Report

and

Hewlett-Packard

(HWP)

won out.

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

Goldman Sachs

, 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.

TheStreet.com's

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

PriceWaterhouseCoopers

consulting arm.

TheStreet.com

wrote about this in an earlier

story.

Also boosting the financial sector was

Goldman Sachs

(GS) - Get Report

, rocketing up 6.2% to $131.94 and among the Big Board's top gainers, after it agreed to buy

New York Stock Exchange

specialist firm

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

Russell 2000

was up 1 to 536.

TheStreet.com Internet Index

was fighting to remain in the green, lately 6 higher to 815.

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 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

ExxonMobil

(XOM) - Get Report

was climbing 2.2%, while

Chevron

(CHV)

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.

Peco Energy

(PE) - Get Report

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

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 9/32 at 99 26/32, pushing its yield up to 5.77%.

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