Techs stocks shed their modest early gains to join the blue chips in negative territory, as profit warnings continue to take a toll on the stock market.
Dow Jones Industrial Average
was slipping 70 to 10,857, with
supplying the most pressure. But big industrial
was also tearing 14 points away from the index.
Meanwhile, the tech-laden
was falling 66 to 3769. In Nasdaq trading,
was bouncing 5.6% on bullish Wall Street comments.
Elsewhere in tech,
analyst Rick Sherlund eased investors concerns on
. In a research note, Sherlund said that management had no plans to pre-announce the company's quarterly results and that he was comfortable with the firm's first-quarter EPS estimate of a 41 cent profit. Despite the positive comments, Microsoft was falling 1.3%.
In company news,
slipped to a new intraday trading low of $27.81 after it warned that third-quarter results would be only slightly up from the year-ago report. This morning,
sliced its rating on the consumer giant to hold from a buy.
was losing 1.6% after
confirmed that the two companies would negotiate merging some of their business. British Telecom was popping 1.2%
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After a huge run-up sparked by merger mania in the financial sector, brokers were on the skids with The
American Stock Exchange Broker/Dealer Index
, which has been tagged as a possible takeover target, was losing 4.3%, while
was stumbling 4.4%.
The Philadelphia Semiconductor Index
was recovering 1% after trading lower Friday. Micron
was bouncing 5% on an upgrade from Lehman Brothers.
American Stock Exchange Oil & Gas Index
hit a new all-time high of 557.54, with gains from
. The group continues to be pushed higher amid rising oil prices. It was lately up 1% to 552.5.
Philadelphia Stock Exchange Oil Services Index
was also off, down 1.8%, with
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The disinversion of the Treasury yield curve was continuing, with the 30-year Treasury bond's yield now higher than the five-year note's for the first time since January.
It's happening because Treasury prices are mixed. Long-maturity issues are lower in price, causing their yields to rise relative to those of the short-maturity issues, which are little changed.
This continues a trend that emerged last week based on two key assumptions: first, that the
Fed is through hiking interest rates, and may even cut the
fed funds rate in the next several months if rising energy prices cause economic growth to slow too much. Investors typically push up long-term yields relative to short-term ones when they expect the Fed to take action to stimulate economic growth.
Second, Election Day could spell the end of the policy of using federal government surplus funds to pay down the national debt by buying back mainly long-maturity Treasuries from investors, which inflates their value relative to shorter-term Treasuries.
The benchmark 10-year Treasury note lately was down 5/32 at 99 3/32, making its yield 5.873%.
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