Compaq's

(CPQ)

profit warning after the close Friday helped send stocks sharply lower early on.

Blaming weak demand and competitive pricing, Compaq expects first-quarter earnings of 15 cents a share, less than half the 33-analyst

First Call

forecast of 31 cents. Compaq earned 1 cent in the year-ago period.

TheStreet.com

wrote about the debacle on

Friday.

The

Nasdaq Composite Index

was down 56 to 2537. The

Dow Jones Industrial Average

was down 62 to 10,111. The

S&P 500

was down 13 to 1336. The

Russell 2000

was down 5 to 401.

TheStreet.com Internet Sector

index was down 3 to 729.

TheStreet.com E-Commerce Index

was down 3 to 128.

The 30-year Treasury bond was up 12/32 to 97 7/32, yielding 5.44%, thanks to the weakness in stocks.

Most Up at Open -- NYSE

Tanger Factory Outlet (SKT) - Get Report, up 1 3/16 to 22

.

Most Up at Open -- Nasdaq

RealNetworks (RNWK) - Get Report, up 10 1/2 to 218

:

IBM

(IBM) - Get Report

and RealNetworks set a pact to develop an application that will enable consumers to receive and process music and related data from the Internet using IBM security features.

Most Down at Open -- NYSE

Sony (SNE) - Get Report, down 3 13/16 to 99 1/8

.

Most Down at Open -- Nasdaq

Yahoo! (YHOO) , down 13 7/8 to 193 1/8

.