Stocks slumped overall, but certain sectors of the market posted solid gains, notably oil and oil service stocks, which rallied as crude oil prices surged.

The

Dow Jones Industrial Average

gave up 51.06, or 0.5%, to 9879.41. The

S&P 500

slipped 8.56, or 0.7%, to 1297.82. The

Nasdaq Composite Index

fell 10.28, or 0.4%, to 2428.99. The

Russell 2000

, meanwhile, dropped 0.75, or 0.2%, to 398.42.

The

Philadelphia Stock Exchange Oil Service Index

jumped 8% and the

American Stock Exchange Oil & Gas Index

rose 2% as the April crude oil futures contract gained sharply.

TheStreet.com Internet Sector

gained 4.28, or 0.7%, to 608.93.

Inktomi

(INKT)

will enter

TheStreet.com Internet Sector

index after the close of trading today, the

Philadelphia Stock Exchange

said. Inktomi is replacing

Netscape

(NSCP)

, whose acquisition by

America Online

(AOL)

was completed today.

TheStreet.com E-Commerce Index

added 0.18, or 0.2%, to 109.71.

Beyond.com

(BYND) - Get Report

will enter TheStreet.com E-Commerce Index after today's close, the

American Stock Exchange

said. Beyond.com is replacing

N2K

(NTKI)

, whose merger with fellow E-Commerce Index component

CDnow

(CDNW)

is expected to be completed today. The merged CDnow/N2K will remain in the index under its new symbol, CDNWD.

The 30-year Treasury bond was down 16/32 to 96 8/32, yielding 5.507%.

On the

New York Stock Exchange

decliners beat advancers 2,091 to 1,359 on 753 million shares. On the

Nasdaq Stock Market

, losers beat winners 2,148 to 1,739 on 853 million shares.

On the NYSE, 78 issues set new 52-week lows while 38 touched new highs. On the Nasdaq, 95 issues set new lows while new highs totaled 55.

Most active on the Big Board was

America Online

(AOL)

, with 23.1 million shares changing hands. It was up 3 13/16 to 108 3/4.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 23.1 million shares changing hands. It was down 1 1/2 to 42 15/16.

Market data above are preliminary. Updated numbers and analysis will follow in the Market Roundup

2:53 p.m.: Stocks Cut Losses in Thin Trading

The market's major barometers were slightly lower heading into the final hour of trading.

The

Dow Jones Industrial Average

was down 12, or 1%, to 9918. The

S&P 500

was down 4 to 1302. The

Nasdaq Composite Index

was down 1 to 2438. The Russell 2000 was down 1 to 398.

TheStreet.com Internet Sector

index was up 7 to 612.

Meanwhile,

TheStreet.com E-Commerce Index

was up 1 to 111.

The 30-year bond was down 13/32 to 96 11/32, yielding 5.50%.

Ricky Harrington, senior vice president and technical analyst at

Interstate/Johnson Lane

, pointed out that the Dow has leapt about 800 points in about 10 days through yesterday.

Meanwhile, on Friday, index options, equity options and index futures options expire, and ahead of that the market could experience some volatility, although it has been relatively quiet today, market participants said.

Harrington said overall in recent years during expiration weeks the market has made gains. So far, today's weakness has been very subdued and nothing out of the ordinary, he said.

Harrington said the Dow's best chance to close above 10,000 is Friday.

However, if tomorrow's

Consumer Price Index

report is bad, that would detour the chances of a close above 10,000.

On the

New York Stock Exchange

, decliners were beating advancers 2,099 to 1,615 on 566 million shares. On the Nasdaq, losers were beating winners 2,091 to 1,671 on 657 million shares.

On the NYSE, 73 issues had set new 52-week lows while 42 had touched new highs. On the Nasdaq, 81 stocks had set new lows while 44 touched new highs.

Most active on the Big Board was

America Online

(AOL)

, with 15 million shares changing hands. It was up 2 15/16 to 107 13/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 18 million shares changing hands. It was down 1 1/4 to 43 1/4.

1:59 p.m.: Stocks Remain Stuck in Negative Territory

The major market averages were mired in negative territory this afternoon, but certain sectors of the market bucked the downturn.

The

Dow Jones Industrial Average

was down 24 to 9907. The

S&P 500

was down 7 to 1299. The

Nasdaq Composite Index

was down 7 to 2432. The

Russell 2000

was down 1 to 398.

TheStreet.com Internet Sector

index was up 5 to 610.

Inktomi

(INKT)

will enter

TheStreet.com Internet Sector

index after the close of trading today, the

Philadelphia Stock Exchange

said. Inktomi is replacing

Netscape

(NSCP)

, whose acquisition by

America Online

(AOL)

was completed today.

Meanwhile,

TheStreet.com E-Commerce Index

was up fractionally at 110.

In other index-reconfiguration news,

Beyond.com

(BYND) - Get Report

will enter TheStreet.com E-Commerce Index after today's close, the

American Stock Exchange

said. Beyond.com is replacing

N2K

(NTKI)

, whose merger with fellow E-Commerce Index component

CDnow

(CDNW)

is expected to be completed today. The merged CDnow/N2K will remain in the index under its new symbol, CDNWD.

The 30-year Treasury bond was down 13/32 to 96 11/32, yielding 5.50%.

Meanwhile, this afternoon,

AT&T

(T) - Get Report

declared a 3-for-2 stock split. AT&T was up 1 7/8 to 83 13/16.

In Techland, semiconductor stocks were stronger. The

Philadelphia Stock Exchange Semiconductor Index

was up 1%.

On the

New York Stock Exchange

, decliners were beating advancers 1,675 to 1,166 on 488 million shares. On the

Nasdaq Stock Market

, losers were beating winners 2,099 to 1,615 on 566 million shares.

On the NYSE, 59 issues had set new 52-week lows while 35 had touched new highs. On the Nasdaq, 73 issues had set new lows while new highs totaled 42.

Most active on the Big Board was

Compaq

(AOL)

, with 12 million shares changing hands. It was up 9/16 to 32 15/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active, with 17 million shares changing hands. It was down 1 1/16, or 2%, to 43 3/8.

Focus: Oil & Oil Service Stocks

Oil and oil service stocks enjoyed solid gains as the April crude oil futures contract surged to $15 a barrel, up 3.7%.

The

Philadelphia Stock Exchange Oil Service Index

was up 5.1%. Since March 1, the oil service index has risen about 31%.

The

American Stock Exchange Oil & Gas Index

, meanwhile, was up a more modest 1.7%. Since March 2, the index has surged 15%.

12:57 p.m.: Midday Musings: Dow Abhors a News Vacuum, and Sinks

12:06 p.m.: Stocks Remain Mired in Negative Territory

Stocks were modestly lower late this morning as red was the dominant color for stock quotes.

The

Dow Jones Industrial Average

was down 44 to 9887. The

S&P 500

was down 11 to 1295. The

Nasdaq Composite Index

was down 13 to 2427.

The small-cap

Russell 2000

was down 2 to 397.

The 30-year Treasury bond was down 11/32 to 96 13/32, yielding 5.50%. (For more, please see the Bond Focus report from late

this morning).

TheStreet.com Internet Sector

index was up 3 to 608.

Inktomi

(INKT)

will enter

TheStreet.com Internet Sector

index after the close of trading today, the

Philadelphia Stock Exchange

said. Inktomi is replacing

Netscape

(NSCP)

, whose acquisition by

America Online

(AOL)

is expected to be completed today.

TheStreet.com E-Commerce Index

was down 1 to 109.

In other index-reconfiguration news,

Beyond.com

(BYND) - Get Report

will enter TheStreet.com E-Commerce Index after today's close, the

American Stock Exchange

said. Beyond.com is replacing

N2K

(NTKI)

, whose merger with fellow E-Commerce Index component

CDnow

(CDNW)

is expected to be completed today. The merged CDnow/N2K will remain in the index under its new symbol, CDNWD.

On the

New York Stock Exchange

, decliners were beating advancers 1,657 to 1,022 on 325 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,978 to 1,401 on 392 million shares.

On the NYSE, 46 issues had set new 52-week lows while 33 had touched new highs. On the Nasdaq, 49 issues had set new lows while new highs totaled 37.

On the Big Board,

Compaq

(CPQ)

was most active, with 10 million shares changing hands. It was up 7/8 to 33 1/4.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active with 14 million shares changing hands. It was down 1 1/8 to 43 5/16.

Tech Focus

The major tech gauges were mixed. The

Nasdaq 100

and the

Morgan Stanley High-Tech 35

were both down fractionally, while the

Philadelphia Stock Exchange Computer Box Maker Index

and the

Philadelphia Stock Exchange Semiconductor Index

were both up fractionally.

Chip titan

Intel

(INTC) - Get Report

was up 13/16 to 121 3/16. Today the

Federal Trade Commission

approved an antitrust settlement with the company. The FTC had issued a complaint in June alleging that Intel illegally used its market power when it denied three of its customers --

Digital Equipment

,

Intergraph

(INGR) - Get Report

and Compaq -- continuing access to advance technical information and product samples necessary to develop computer systems based on Intel microprocessors. The complaint alleged that Intel withheld information from the companies as a method of coercing them into licensing their patented innovations to Intel. The settlement is now subject to public comment.

Meanwhile,

RealNetworks

(RNWK) - Get Report

was a big winner, up 12 1/8, or 11%, to 126 1/2. The stock rose on a report in

The Wall Street Journal

which said that

Microsoft

(MSFT) - Get Report

was renewing a collaboration with RealNetworks, a Mister Softee rival.

11:02 a.m.: Dow Joins Its Brethren in Negative Territory

Stocks were modestly lower at midmorning, as oil and oil service stocks were among the few bright spots in the market.

The

Dow Jones Industrial Average

was down 39 to 9892.

United Technologies

(UTX) - Get Report

and

Caterpillar

(CAT) - Get Report

were the biggest gainers in the average, up 1 3/8 to 131 and 2 9/16 to 46 9/16, respectively. United Technologies is selling its automotive unit

UT Automotive

for $2.3 billion to

Lear

(LEA) - Get Report

.

"I think it doesn't look like it's ready to sustain a move above 10,000," said Louis Todd, head of equities trading at

J.C. Bradford

. He said he sees the market backing and filling over the next few days.

Todd said it looks like it's going to be a good month in terms of money inflows into the market, a plus for the market.

The

Philadelphia Stock Exchange Oil Service Index

was up 3%, while the

American Stock Exchange Oil & Gas Index

was up 2%.

The

S&P 500

down 10 to 1297. The

Nasdaq Composite Index

was down 18 to 2421. The small-cap

Russell 2000

was down 2 to 398.

TheStreet.com Internet Sector

index was up fractionally at 605.

Inktomi

(INKT)

will enter

TheStreet.com Internet Sector

index after the close of trading today, the

Philadelphia Stock Exchange

said. Inktomi is replacing

Netscape

(NSCP)

, whose acquisition by

America Online

(AOL)

is expected to be completed today.

Meanwhile,

TheStreet.com E-Commerce Index

was down 1 to 109.

In other index-reconfiguration news,

Beyond.com

(BYND) - Get Report

will enter TheStreet.com E-Commerce Index after today's close, the

American Stock Exchange

said. Beyond.com is replacing

N2K

(NTKI)

, whose merger with fellow E-Commerce Index component

CDnow

(CDNW)

is expected to be completed today. The merged CDnow/N2K will remain in the index under its new symbol, CDNWD.

The 30-year Treasury bond was down 5/32 to 96 20/32, yielding 5.48%.

On the

New York Stock Exchange

, decliners were beating advancers 1,492 to 995 on 216 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,756 to 1,317 on 266 million shares.

On the NYSE, 32 issues had set new 52-week highs while 30 had touched new lows. On the Nasdaq, 38 issues had set new lows while new highs totaled 32.

On the Big Board,

Compaq

(CPQ)

was most active, with 7 million shares changing hands. It was up 13/16 to 33 1/16.

On the Nasdaq,

Dell

(DELL) - Get Report

was most active with 11 million shares changing hands. It was down 1 3/16 to 43 3/16.

Company Focus: Eli Lilly

Prozac's

dark quarter continues to depress

Eli Lilly

(LLY) - Get Report

investors.

SG Cowen

drug analyst Steve Scala said this morning that his $2.32-a-share earnings estimate on Lilly for the year might be 2 cents high.

Lilly was down 4 3/16 to 89 7/8.

Prozac sales are being hurt by

Celexa

, the new anti-depressant from

Forest

(FRX)

and

Warner-Lambert

(WLA)

. Also, there is less demand this quarter because there was heavy stocking of Prozac by wholesalers in the fourth quarter.

Merrill Lynch

analyst Steve Tighe made the same call last week, which put pressure on the stock. He says that in the first quarter, Prozac is likely to be flat from last year's first-quarter sales of $617.6 million.

--

Jesse Eisinger

9:54 a.m.: Stocks Open Mostly Lower

Stocks were mostly lower in the early going, while the

Federal Trade Commission

approved an antitrust settlement with

Intel

(INTC) - Get Report

.

Intel was last up 1/2 to 120 13/16.

The

Dow Jones Industrial Average

was up 3 to 9933. The

S&P 500

was down 3 to 1304.

The

Nasdaq Composite Index

was down 5 to 2434. The

Russell 2000

was down fractionally at 399.

TheStreet.com Internet Sector

index was up 5 to 609.

Inktomi

(INKT)

will enter

TheStreet.com Internet Sector

index after the close of trading today, the

Philadelphia Stock Exchange

said. Inktomi is replacing

Netscape

(NSCP)

, whose acquisition by

America Online

(AOL)

is expected to be completed today.

TheStreet.com E-Commerce Index

was down fractionally at 110.

The 30-year Treasury bond was down 1/32 to 96 24/32, yielding 5.47%.

Most Up at Open -- NYSE

Compaq (CPQ) , up 1 1/16 to 33 7/16

.

Most Up at Open -- Nasdaq

Bottomline (EPAY) - Get Report, up 5 1/2 to 74

.

Most Down at Open -- NYSE

IBM (IBM) - Get Report, down 1 7/16 to 179 9/16

.

Most Down at Open -- Nasdaq

VerticalNet (VERT) , down 6 1/16 to 84

.