Nasdaq Falls into Negative Territory
The
Nasdaq Composite Index
bid a painful goodbye to its chunky early gains and is now in negative territory, while blue-chip
IBM
(IBM) - Get Report
continued to boost the
Dow Jones Industrial Average
.
The Nasdaq Comp had been up as much as 45.98, or 2%, to 2311.18 at one point today.
A wave of selling in stocks began around 1:15 p.m. EST. The Nasdaq Comp was down 3 to 2262.
Advancers had been beating decliners through most of the day on the
Nasdaq Stock Market
. However, that has changed. Losers were now beating winners 1,890 to 1,831 on 689 million shares.
The Dow was up 106 to 9382. IBM was up 4 1/8, or 2%, to 170 7/8, on news of its $16 billion agreement with
Dell
(DELL) - Get Report
, in which Dell will purchase storage, microelectronics, networking, and display technology from IBM for integration into Dell computer systems.
The
S&P 500
was up 6 to 1233. The small-cap
Russell 2000
was down fractionally at 392.
TheStreet.com Internet Sector
was down 8 to 513.
TheStreet.com E-Commerce Index
was down 4 to 92.
The long bond was down 3/32 to 93 18/32, yielding 5.70%.
Oil service stocks were soaring, padding yesterday's huge gains. The
Philadelphia Stock Exchange Oil Service Index
was up 5%.
On the
New York Stock Exchange
, advancers were still beating decliners 1,463 to 1,380 on 595 million shares.
On the NYSE, 70 issues had set new 52-week lows while 23 had touched new highs. On the Nasdaq, 79 issues had set new lows while new highs totaled 30.
Ricky Harrington, senior vice president and technical analyst at
Interstate/Johnson Lane
, said the loss of leadership from tech stocks is a very important development for the market.
"It's hard to replace the tech stocks as leaders," he said, adding that it will be difficult for them to go back to new highs.
The Dow has been holding in better than the rest of the market, and with the loss of leadership in the techs, there has been better action in the big-cap cyclicals. However, he said he doesn't know how long that's going to last.
1:55 p.m.: IBM-Dell Deal Continues to Buoy Stocks
Led by
IBM
(IBM) - Get Report
, the
Dow Jones Industrial Average
was up 2%.
IBM surged on news of its $16 billion technology pact with
Dell
(DELL) - Get Report
.
As part of the agreement -- which the companies said they believed was the largest of its kind in the information tech industry -- Dell will purchase storage, microelectronics, networking, and display technology from IBM for integration into Dell computer systems. In the future, the agreement is expected to include IBM's copper, silicon-on-insulator, and other technologies.
Meanwhile, oil service stocks were flying again today. The
Philadelphia Stock Exchange Oil Service Index
was up 6%. The index gained more than 7% yesterday.
IBM was up 7 11/16, or 5%, to 174 7/16, helping push the Dow up 151 to 9427. Dell, meanwhile, was up 1 15/16 to 82 7/8. It was most active on the
Nasdaq Stock Market
on volume of 28 million.
The news helped push up the bruised tech sector. The
Nasdaq Composite Index
was up 23 to 2288.
The
S&P 500
was up 13 to 1241.
The
Russell 2000
was up 1 to 393.
TheStreet.com Internet Sector
was down 3 to 518.
TheStreet.com E-Commerce Index
was down 2 to 94.
The 30-year Treasury bond was down 1/32 to 93 19/32, yielding 5.70%.
On the
New York Stock Exchange
, advancers were beating decliners 1,562 to 1,200 on 481 million shares. On the Nasdaq, winners losers were beating 1,937 to 1,634 on 550 million shares.
On the NYSE, 58 issues had set new 52-week lows while 23 had touched new highs. On the Nasdaq, 71 issues had set new lows while new highs totaled 28.
On the Big Board,
Compaq
(CPQ)
was most active, with 14 million shares changing hands. It was down 9/16 to 33 3/8.
Sector Focus: Retail
The
S&P Retail Index
was up 0.9% as retailers turned in solid sales results for February. The index is up 4% this year.
Wal-Mart
(WMT) - Get Report
, the world's largest retailer, said same-store sales rose 10.3%. Wal-Mart was up 1 3/8 to 88 3/4. It hit a 52-week intraday high earlier when it peaked at 89 5/8.
Limited's
(LTD)
February same-store sales jumped 13%. Its stock was up 13/16 to 38 1/16.
Circuit City Group's
(CC) - Get Report
February same-store sales surged 12%, helping boost its stock 3 15/16, or 6.9%, to 61.
Elsewhere,
Dayton Hudson's
(DH)
total February same-store sales rose 8.3%. It was up 2 to 65 3/8.
12:51 p.m.: Midday Musings: Ignoring That Jobs Report Around the Corner, Wall Street Rallies
12:01 p.m.: Stocks Hover Near Session Highs After Surging on IBM-Dell Deal
Thanks to the gigantic deal between
IBM
(IBM) - Get Report
and
Dell
(DELL) - Get Report
, stocks were near their session highs, with the tech sector leading the way.
IBM was up 8 1/16, or 5%, to 174 13/16. Dell was up 2 7/16 to 83 3/8. On the
Nasdaq Stock Market
, Dell was most active on volume of 23 million shares.
As part of the agreement -- which the companies said they believed was the largest of its kind in the information tech industry -- Dell will purchase storage, microelectronics, networking, and display technology from IBM for integration into Dell computer systems. In the future, the agreement is expected to include IBM's copper, silicon-on-insulator, and other technologies.
The
Nasdaq Composite Index
was up 38 to 2303.
The
Dow Jones Industrial Average
was up 160 to 9436.
The
S&P 500
was up 18 to 1245. The
Russell 2000
was up 2 to 394.
The 30-year bond was down 2/32 at 93 18/32, yielding 5.70%.
TheStreet.com Internet Sector
was up fractionally at 522.
TheStreet.com E-Commerce Index
was down 1 to 95.
Brokerage stocks rallied, as the
American Stock Exchange Broker/Dealer Index
has jumped 2%. Oil service stocks, which surged sharply yesterday, were rallying again today. The
Philadelphia Stock Exchange Oil Service Index
has leapt 3%.
On the
New York Stock Exchange
, advancers were beating decliners 1,557 to 1,113 on 331 million shares. On the
Nasdaq Stock Market
, winners were beating losers 1,883 to 1,384 on 382 million shares.
On the NYSE, 46 issues had set new 52-week lows while 18 had touched new highs. On the Nasdaq, 50 issues had set new lows while new highs totaled 23.
On the Big Board,
Compaq
(CPQ)
was most active with 11 million shares changing hands. It was flat at 33 7/8.
Tech Focus
Among the major tech indices, the
Nasdaq 100
and the
Morgan Stanley High-Tech 35
were up 2%. The
Philadelphia Stock Exchange Semiconductor Index
was up 3%. The
Philadelphia Stock Exchange Computer Box Maker Index
was up 2%.
Elsewhere in the news today, Germany's
Siemens
is about to expand into the data networking business by forming an American subsidiary, buying two private companies, investing in a third and hiring a senior executive from IBM, Martin C. Clague, general manager for global network computing solutions,
The New York Times
reported, citing executives close to the company's planning.
The manufacturing company is also in preliminary talks with
3Com
(COMS)
regarding payment of $1.2 billion for the 3Com unit that sells networking equipment to phone companies, the
Times
reported, citing the executives. 3Com was up 7/16 to 24 15/16.
In other news,
Bluefly
(BFLY)
entered into a marketing agreement with
Excite
(XCIT)
. Under the deal, Bluefly's online store will be integrated throughout Excite.com, WebCrawler.com, and the Excite co-branded channels of
Netscape's
(NSCP)
Netcenter sites through a combination of commerce, advertising and promotional programs. On the news, Bluefly was down 2 5/16, or 14.7%, to 13 3/8. Netscape was up 1/16 to 76 3/8, while Excite was up 1 7/16 to 108 1/8.
In the Newsletters
Ingram Micro
(IM)
is moving into the network-access resale business, according to a report on
Computer Reseller News'
Web site. The company yesterday launched rapid band, a new program that lets Ingram Micro resellers price and provide bandwidth services to their customers, the report said. During an undetermined trial period, the company will offer high-speed digital subscriber line data access from
Rhythms NetConnections
, a provider of DSL-based network connectivity, the article said. Ingram Micro was up 1/8 to 21 7/8.
11:03 a.m.: Major Indices Surge as Tech Sector Rallies on IBM-Dell Deal
Word of a whopping $16 billion technology pact between
IBM
(IBM) - Get Report
and
Dell
(DELL) - Get Report
gave technology stocks a shot of adrenalin as the
Nasdaq Composite Index
was leading the market higher, up 2%.
As part of the agreement -- which the companies said they believed was the largest of its kind in the information tech industry -- Dell will purchase storage, microelectronics, networking, and display technology from IBM for integration into Dell computer systems. In the future, the agreement is expected to include IBM's copper, silicon-on-insulator, and other advanced technologies.
IBM has leapt 8 15/16, or 5%, to 175 11/16, while Dell was up 2 5/8 to 83 1/2. Dell was most active on the
Nasdaq Stock Market
on volume of 19 million.
"Techs are up for a change," said Scott Curtis, senior equity trader at
Brown Brothers Harriman
, noting the IBM-Dell news has helped pump up the market.
Curtis, however, cautioned that people are still nervous about tomorrow's
employment report
. Economists expect an increase of 245,000 in nonfarm payrolls, according to a
Reuters
survey.
Lately, evidence of continued robust strength in the economy has sparked fears that the
Federal Reserve
will hike interest rates to cool down the economy, which has battered the bond market. Also, the bond market's weakness and rise in interest rates has particularly exposed the tech stocks, Curtis noted.
The
Nasdaq Composite Index
was up 39 to 2304.
The
Dow Jones Industrial Average
was up 131 to 9407. IBM accounted for roughly 39 points of the Dow's gain.
The
S&P 500
was up 16 to 1244.
The small-cap
Russell 2000
was in its typical position of market up just 2 to 394.
TheStreet.com Internet Sector
index was up 1 to 522.
TheStreet.com E-Commerce Index
was down fractionally at 96.
The 30-year Treasury bond was down 3/32 to 93 18/32, yielding 5.70%.
On the
New York Stock Exchange
, advancers were beating decliners 1,502 to 978 on 224 million shares. On the Nasdaq, winners were beating losers 1,794 to 1,189 on 274 million shares.
On the NYSE, 37 issues had set new 52-week lows while 17 had touched new highs. On the Nasdaq, 37 issues had set new lows while new highs totaled 20.
On the Big Board,
Compaq
(CPQ)
was most active with 8 million shares changing hands. It was up 1/8 to 34.
10:00 a.m.: IBM-Dell Deal Boosts Tech Sector
News of a $16 billion technology pact between
IBM
(IBM) - Get Report
and
Dell
(DELL) - Get Report
has pumped up the tech sector early on.
As part of the contract, Dell will purchase storage, microelectronics, networking, and display technology from IBM for integration into Dell computer systems. In the future, the agreement is expected to include IBM's copper, silicon-on-insulator, and other advanced technologies.
The pact, which spans seven years, also calls for broad patent cross-licensing between the two tech titans and collaboration on development of product technology.
IBM was up 7 5/8 to 174 3/8, while Dell was up 3 1/4 to 83 1/8.
The tech-heavy
Nasdaq Composite Index
was up 28 to 2294.
Elsewhere, the
Dow Jones Industrial Average
was up 46 to 9322. The
S&P 500
was up 8 to 1236. The
Russell 2000
was up 2 to 393.
TheStreet.com E-Commerce Index
was up 1 to 97.
A quote for
TheStreet.com Internet Sector
index was unavailable.
The 30-year Treasury bond was down 3/32 to 93 18/32, yielding 5.70%.
Most Up at Open -- NYSE
American Express (AXP) - Get Report, up 1 15/16 to 109 3/4
:
Salomon Smith Barney
initiated coverage of American Express with a buy rating.
Most Up at Open -- Nasdaq
RF Micro Devices (RFMD) , up 6 13/16 to 88
: The telecommunications equipment company yesterday announced a 2-for-1 stock split.
Most Down at Open -- NYSE
DaimlerChrysler (DCX) , down 2 3/16 to 85 3/4
.
Most Down at Open -- Nasdaq
CheckFree Holdings (CKFR) , down 2 5/8 to 32 7/8
.
