Why is the word "own" in the word down? Clearly, investors avoided stock ownership after the
announced a tightening bias around 2:15 p.m. EDT. The following hour-long selloff eliminated all of this morning's 60-point rally and more -- much more. Then 3 p.m. EDT rolled around and the market went for broke, as in "broke even."
The 30-year Treasury bond took the last train to Clarksville, but you can't meet it at the station. It rode the express after the Fed announcement, off 1 8/32 to 99 6/32, yielding 6.16.
The blue-chippers in the
Dow Jones Industrial Average
wore concrete sandals and went for a walk off the pier. The big sinkers:
, down 1 7/16 to 84 9/16;
, down 1 13/16 to 44 3/8; and
, off 2 1/4 to 55 1/2.
Techs were stronger than most.
TheStreet.com Internet Sector
index was up 12.41, or 2%, to 668.02. The
Philadelphia Stock Exchange Semiconductor Index
, or SOX, was up 17.03, or 3%, to 548.70. The
Philadelphia Stock Exchange Computer Box Maker Index
was up 7.34, or 2%, to 315.02. Look out for those rascally e-twins!
TheStreet.com E-Finance Index
was up 1 19/32, or 3%, to 61 15/32, while its kin,
TheStreet.com E-Commerce Index
, was up 2.79, or 3%, to 96.81.
Oil did not have an easy day. The sector went from crude to crud. The
American Stock Exchange Natural Gas Index
was off 2.40, or 2%, to 140.26. The
American Stock Exchange Oil & Gas Index
was off 11.34, or 2%, to 490.27. The
Chicago Board Options Exchange Oil Index
was off 6.76, or 2%, to 286.28. Rounding out the field was the
Philadelphia Stock Exchange Oil Service Sector Index
, off 4.04, or 5%, to 70.16.
may not be
, but the company did have its pinky firmly planted on its lower lip as it announced a buyout of
. The price tag: "$115 billion!" The stock swap, the largest corporate buyout ever, has MCI WorldCom paying $76 in stock per Sprint share, which become the new
tracking stock. The big loser in the deal is
, which barged in with a hefty offer, only to be rebuffed.
WorldCom, the most-actively traded stock on the Nasdaq on 59 million shares, dropped 3 11/16, or 5%, to 67 15/16. Sprint, the fourth-most-actively traded stock on the Big Board on 12 million shares, dropped 2, or 3%, to 58 7/8.
In the next episode of
As the Internet Turns
announced plans to acquire
for $500 million. Intel was down 3/4, or 1%, to 76 3/16.
New York Stock Exchange
, decliners beat advancers 1,781 to 1,221 on 955 million shares. On the
Nasdaq Stock Market
, losers beat winners 2,098 to 1,817 on 1.192 billion shares.
On the NYSE, 144 issues set new 52-week lows while 54 touched new highs. On the Nasdaq, 118 issues set new 52-week lows while new highs totaled 92.
On the Big Board,
was the most active, with 16 million shares changing hands. It was up 1 1/4 to 45.
3:04 p.m.: Stocks Turn Mostly Lower After FOMC Meeting Ends
The good news: The
didn't raise rates. The bad news: The Fed adopted a tightening bias.
1:59 p.m.: Tech Sector Leads Climb Higher
Federal Open Market Committee
. 2:15 p.m. EDT. Things are green on the way in to the announcement.
1:03 p.m.: Midday Musings: Wall Street Holds Onto Solid Gains as Fed Decision Nears
12:06 p.m.: Stocks Modestly Higher as Tech Sector Jumps
The index that has led the market's major proxies so far this year was leading the market higher, while on the downside, oil service stocks were getting crushed.
11:01 a.m.: Stocks Remain Modestly Higher Ahead of FOMC
Amid a news-juicy backdrop of the announcement of the biggest takeover in history and a
Federal Open Market Committee
meeting, stocks were trading modestly higher at midmorning.
10:01 a.m.: Stocks Open Slightly Higher Amid Sprint-MCI WorldCom Deal
Stocks opened slightly on the firm side amid the official word that
has agreed to take over
for $115 billion, the biggest deal in history. However,
Federal Communications Commission
Chairman William Kennard was out with comments on
pointing out that competition has produced a price war in the long-distance world and that the deal "appears to be a surrender."