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Stocks Close Mostly Lower Amid Another Big Drop in Bonds

Only the Nasdaq managed to close in the black.

The

Nasdaq Composite Index

was the lone major market gauge to end in the green, posting a modest gain, as stocks overall stumbled.

Decliners firmly beat advancers. Treasuries again took a chunk of the blame for the slip in stocks, as the 30-year Treasury bond fell for the fourth straight session. Jitters ahead of next week's

Federal Open Market Committee

meeting and on supply pressures were cited for the weakness in the Treasury market.

In blue-chip land, the

Dow Jones Industrial Average

was weighed down the most by

J.P. Morgan

(JPM) - Get JPMorgan Chase & Co. (JPM) Report

, which fell 4 3/8 to 130 5/8.

Forest and paper product, oil service and gold mining stocks were notable sectors in the plus column. The

Philadelphia Stock Exchange Forest & Paper Products Index

jumped 1.5%. The

Philadelphia Stock Exchange Oil Service Index

advanced 1.4%, while the

Philadelphia Stock Exchange Gold and Silver Index

surged 5.4%.

In tech, semiconductor stocks shined. The

Philadelphia Stock Exchange Semiconductor Index

rose 1.8%.

Banks, retail and drug stocks were among the sectors notable on the downside. The

Philadelphia Stock Exchange/KBW Bank Index

surrendered 1.6%. The

S&P Retail Index

fell 1.3%. The

American Stock Exchange Pharmaceutical Index

gave up 1.4%.

On the

New York Stock Exchange

, decliners beat advancers 1,747 to 1,213 on 727.3 million shares. On the

Nasdaq Stock Market

, losers beat winners 2,024 to 1,792 on 942.8 million shares.

On the NYSE, 67 issues set new 52-week lows while 51 touched new highs. On the Nasdaq, 71 issues set new highs while new lows totaled 51.

On the Big Board, discount and online broker

TD Waterhouse

(TWE)

was most active with 27.5 million shares changing hands. It was up 1 5/8, or 6.8%, to 25 5/8, in its trading debut. Its 42 million-share IPO was priced yesterday at $24 a share.

On the Nasdaq,

Qwest Communications

(QWST)

was most active, with 32.9 million shares changing hands. It was down 2 11/16, or 7.6%, to 32 9/16.

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

2:58 p.m.: Nasdaq Falls Back Into Negative Territory After Brief Climb Into the Black

The

Nasdaq Composite Index

fell back into the red after posting a slight gain earlier this afternoon. However, market internals were weak.

Another lousy session in the bond market was depressing stocks. A host of reasons have been cited for the decline in Treasuries, including jitters that more than one

Fed

interest rate hike may be in the offing and pressure from upcoming corporate and agency debt supply.

The blue-chip

Dow Jones Industrial Average

was off modestly, led on the downside by

J.P. Morgan

(JPM) - Get JPMorgan Chase & Co. (JPM) Report

. The second-biggest drag was

American Express

(AXP) - Get American Express Company Report

.

Louis Todd, head of equities trading at

J.C. Bradford

, said he thought people are still "kind of leery" of interest rates right now. He also pointed out that the market's underlying technicals are less than robust.

Declining issues were beating advancing issues on both the

New York Stock Exchange

and the

Nasdaq Stock Market

.

On the NYSE, decliners were beating advancers 1,832 to 1,037 on 551 million shares. On the Nasdaq, losers were beating winners 2,052 to 1,602 on 725 million shares.

On the NYSE, 58 issues had set new 52-week lows while 44 had touched new highs. On the Nasdaq, 57 issues had set new highs while new lows totaled 40.

On the Big Board, discount and online broker

TD Waterhouse

(TWE:NYSE) was most active, with 25 million shares changing hands. It was up 2, or 8%, to 26, in its trading debut. TD Waterhouse is a unit of

Toronto-Dominion Bank

(TD) - Get Toronto-Dominion Bank Report

of Canada. Its 42 million-share IPO was priced yesterday at $24 a share, raising about $1 billion.

Toronto Dominion was down 1 3/8 to 49 3/8.

On the Nasdaq,

Qwest Communications

(QWST)

was most active, with 27 million shares changing hands. It was down 2 5/8, or 7%, to 32 11/16.

Meanwhile in the news this afternoon,

Multex.com

(MLTX)

, a provider of online investment research and information services, is acquiring

Market Guide

(MARG)

, a provider of financial information on the Internet. Under the terms of the deal, Market Guide shareholders will receive one share of Multex.com stock for each outstanding share of Market Guide stock. Trading has halted in both Multex.com and Market Guide, with the last trades on the stocks at 28 3/8 and 22 1/4 respectively.

1:57 p.m.: Stocks Mostly Lower Amid Drop in Treasuries

"I work for"

J.P. Morgan

(JPM) - Get JPMorgan Chase & Co. (JPM) Report

was the biggest drag on the

Dow Jones Industrial Average

this afternoon, as most of the major market barometers continued in the red.

J.P. Morgan was down 3 1/2 to 131 1/2.

In other news,

GlobeSpan

(GSPN:Nasdaq) was soaring in its trading debut. It was up 18 1/16, or 120%, to 33 3/16. Its 3.25 million-share IPO was priced top-range at $15 yesterday by

BancBoston Robertson Stephens

. The company is a developer of advanced digital subscriber line integrated circuits.

Oil and oil service stocks gained along with crude oil futures after the

American Petroleum Institute

yesterday reported a huge draw of 5.8 million barrels in crude stocks in the week ended June 18, far above expectations, which projected a draw of 1 million barrels. The August crude oil futures contract was up 3% to $18.28 a barrel.

The

Chicago Board Options Exchange Oil Index

was up 1%, while the

Philadelphia Stock Exchange Oil Service Index

was up 2%. Both gauges are off their best levels of the session, however.

Part of the blame for the decline in stocks was laid at the feet of the Treasury market, which was softer again today. Treasuries tumbled ahead of next week's

Federal Open Market Committee

meeting and under the weight of corporate and agency supply.

On the

New York Stock Exchange

, decliners were beating advancers 1,844 to 1,005 on 462 million shares. On the

Nasdaq Stock Market

, losers were beating winners 2,008 to 1,554 on 609 million shares.

On the NYSE, 50 issues had set new 52-week lows while 37 had touched new highs. On the Nasdaq, 50 issues had set new highs while new lows totaled 36.

On the Nasdaq,

Qwest Communications

(QWST)

was most active, with 23 million shares changing hands. It was down 2 11/16, or 8%, to 32 5/8.

Company Focus: TD Waterhouse

On the NYSE, discount and online broker

TD Waterhouse

(TWE:NYSE) was most active, with 24 million shares changing hands. It was up 2 1/16, or 9%, to 26 1/16, in its trading debut. TD Waterhouse is a unit of

Toronto-Dominion Bank

(TD) - Get Toronto-Dominion Bank Report

of Canada. The 42 million-share IPO was priced yesterday at $24 a share, raising about $1 billion.

Toronto Dominion was down 1 3/8 to 49 3/8.

12:58 p.m.: Midday Musings: Continued Rate Worries Put Clamps on Stocks

12:06 p.m.: Slump in Treasury Market Continues to Weigh on Stocks

A slumping Treasury market has helped keep stocks slightly lower as the noon hour rolls around on Wall Street.

Treasuries decayed ahead of next week's

Federal Open Market Committee

meeting and under the weight of looming corporate and agency debt issuance.

The supply situation that has been weighing on the Treasury market lately eased a little bit this morning.

Ford Motor Credit

, the financing arm of

Ford

(F) - Get Ford Motor Company Report

, said it isn't selling bonds at this time due to market conditions,

Reuters

said.

The forest and paper product sector was strong this morning. The

Philadelphia Stock Exchange Forest & Paper Products Index

was up 2%.

International Paper

(IP) - Get International Paper Company (IP) Report

, a Dow component and the world's largest paper concern, was up 1 13/16 to 54 7/8, after being upgraded to outperform from neutral by

Morgan Stanley Dean Witter

.

TheStreet Recommends

Banks and brokerage stocks were weak. The

Philadelphia Stock Exchange/KBW Bank Index

and the

American Stock Exchange Broker/Dealer Index

were down 1%. Brokerage stocks fell despite strong earnings out of

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. (GS) Report

, which ran past Wall Street estimates.

Oil stocks were higher in the wake of the release of oil inventory stats yesterday from the

American Petroleum Institute

, which showed a draw in crude stocks of about 5.8 million barrels, larger than expected. The

Chicago Board Options Exchange Oil Index

was up 1%, while the

Philadelphia Stock Exchange Oil Service Index

was up 3%.

On the

New York Stock Exchange

, decliners were beating advancers 1,717 to 933 on 299 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,840 to 1,428 on 400 million shares.

On the NYSE, 28 issues had set new 52-week highs while 31 had touched new lows. On the Nasdaq, 43 issues had set new highs while new lows totaled 29.

On the NYSE,

TD Waterhouse

(TWE:NYSE) was most active with 19.9 million shares changing hands. It was up 2 1/4, or 9%, to 26 1/4.

On the Nasdaq,

Qwest Communications

(QWST)

was most active, with 14.9 million shares changing hands. It was down 3, or 9%, to 32 5/16.

Tech Focus

In tech,

3Com

(COMS)

was prominent on the downside, and was off 4, or 13%, to 27 1/2, in the wake of its earnings report after the close. The good news: The company posted fourth-quarter earnings of 24 cents a share, 1 cent higher than the 25-analyst view and ahead of the year-ago 18 cents. The bad news: 3Com's CFO said the firm's revenue for the first and third quarters of 2000 is expected to come in below year-ago figures.

In the wake of the news,

Gruntal

downgraded 3Com to hold from strong buy and lowered its fiscal 2000 earnings estimate on the company.

The

Philadelphia Stock Exchange Computer Box Maker Index

was down 1%. The

Nasdaq 100

was up fractionally. The

Morgan Stanley High-Tech 35

was down 1%.

CMGI

(CMGI)

was up in the wake of reports that it is in talks to acquire

AltaVista

and other Internet assets from

Compaq

(CPQ)

. CMGI was up 1 3/4 to 96 11/16.

Meanwhile,

Metromedia Fiber Network

(MFNX)

is acquiring

AboveNet Communications

(ABOV)

for roughly $1.6 billion in stock. Under terms of the deal, AboveNet common stock shareholders will receive 1.175 shares of Metromedia Class A common stock for each share of AboveNet common stock they own. Based on Metromedia's closing price yesterday of 42 1/2, the deal values each AboveNet share at roughly $49.94, a hefty premium over its closing price yesterday of 36 3/4. AboveNet was up 4 7/16, or 12%, to 41 1/8, while Metromedia was down 5 1/16, or 12%, to 37 11/16.

10:59 a.m.: Stocks Modestly Lower as Treasuries Tumble

Continued weakness in the Treasury market was weighing on stocks again, as the market retreated modestly.

Meanwhile,

Qwest Communications

(QWST)

has sweetened its takeover bids for

U S West

(USW)

and

Frontier

(FRO) - Get Frontline Ltd. Report

this morning. The revised Qwest bids come on the heels of statements from U S West and Frontier that they decided to take no action on Qwest's original bids and reaffirmed their plans to get together with

Global Crossing

(GBLX)

. In March, Global Crossing said it would acquire Frontier. In May, Global Crossing and U S West agreed to merge.

Banks and brokerage stocks were weak. The

Philadelphia Stock Exchange/KBW Bank Index

and the

American Stock Exchange Broker/Dealer Index

were down 1%. Brokerage stocks fell despite strong earnings out of

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. (GS) Report

, which ran past Wall Street estimates.

Forest and paper product stocks and oil and oil service stocks were winners this morning. The

Philadelphia Stock Exchange Forest & Paper Products Index

was up 2%. The

Chicago Board Options Exchange Oil Index

was up 1%, while the

Philadelphia Stock Exchange Oil Service Index

was up 4%.

As for the government market, Treasuries have been pressured lately in part under the weight of upcoming corporate supply.

Meanwhile, a forecast issued by economists at the

Anderson School

at the

University of California, Los Angeles

, said the

Fed

will raise interest rates by 75 basis points over the next six months,

Reuters

reported.

On the

New York Stock Exchange

, decliners were beating advancers 1,584 to 865 on 210 million shares. On the

Nasdaq Stock Market

, losers were beating winners 1,659 to 1,275 on 279 million shares.

On the NYSE, 18 issues had set new 52-week highs while 20 had touched new lows. On the Nasdaq, 33 issues had set new highs while new lows totaled 19.

On the NYSE,

Compaq

(CPQ)

was most active with 7 million shares changing hands. It was down 7/16 to 23 3/8.

On the Nasdaq,

3Com

(COMS)

was most active, with 10 million shares changing hands. It was down 3 7/8 to 27 9/16. The company posted fourth-quarter earnings of 24 cents a share, 1 cent higher than the 25-analyst view and ahead of the year-ago 18 cents. But the company's CFO said 3Com's revenue for the first and third quarters of 2000 is expected to come in below year-ago figures.

9:56 a.m.: Stocks Open Modestly Weaker

Stocks were slightly weaker early on, while

Qwest Communications

(QWST)

has sweetened its takeover bids for

U S West

(USW)

and

Frontier

(FRO) - Get Frontline Ltd. Report

.

U S West on Monday -- like Frontier did last week -- decided to take no action on Qwest's previous bid -- which it made on June 13 -- and reaffirmed its plan to merge with

Global Crossing

(GBLX)

. In March, Global Crossing said it would acquire Frontier. In May, Global Crossing and U S West agreed to merge. On June 13, Qwest offered to buy U S West and Frontier in separate transactions.

On the earnings front,

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. (GS) Report

posted second-quarter pro forma operating earnings of $1.30 a share. The

First Call

11-analyst forecast called for the firm to earn $1.07. Goldman was down 1 1/8 to 66 7/8.

Most Up at Open -- NYSE

Weatherford International (WFT) - Get Weatherford International plc Report, up 1 3/4 to 36 3/8

.

Most Up at Open -- Nasdaq

EarthLink (ELNK) , up 3 3/4 to 61

. As part of an effort to expand its business beyond direct sales of computers,

Gateway

(GTW)

is in early talks to acquire EarthLink,

The Wall Street Journal

reported, citing people close to the situation. Earthlink's stock jumped yesterday on market chatter that Gateway might make a buyout offer for the company.

Most Down at Open -- NYSE

Sony (SNE) - Get SONY GROUP CORPORATION SPONSORED ADR Report, down 3 9/16 to 106

.

Most Down at Open -- Nasdaq

DoubleClick (DCLK) , down 5 7/16 to 85 1/4

.