Stocks Turn Narrowly Mixed at Midday
Cyberspace issues were posting solid gains and oil service stocks took wing, while the market's major averages were narrowly mixed as the lunch hour approached on Wall Street.
TheStreet.com Internet Sector
index was up 12 to 581.
TheStreet.com E-Commerce Index
was up 2 to 106. More on the Net gains below.
The Philadelphia Stock Exchange Oil Service Index was up 8%.
Meanwhile, the
Dow Jones Industrial Average
was up 4 to 9698. The
S&P 500
was down 2 to 1278.
The
Nasdaq Composite Index
was down 4 to 2389. The small-cap
Russell 2000
was up 1 to 400.
The 30-year Treasury bond was down 10/32 to 95 18/32, yielding 5.56%.
On the
New York Stock Exchange
, advancers were beating decliners 1,432 to 1,224 on 328x million shares. On the
Nasdaq Stock Market
, winners were beating losers 1,730 to 1,598 on 392 million shares.
On the NYSE, 45 issues had set new 52-week lows while 43 had touched new highs. On the Nasdaq, 51 issues had set new highs while new lows totaled 30.
On the Big Board,
Compaq
(CPQ)
was most active, with 15 million shares changing hands. It was down 1 5/8 to 31 1/8.
On the Nasdaq,
Dell
(DELL) - Get Report
was most active, with 17 million shares changing hands. It was down 5/8 to 43 7/16. Today
Amazon.com
(AMZN) - Get Report
and Dell announced a strategic agreement to offer linked Web sites and provide customized content for Amazon.com and Dell customers.
Tech Focus
The major tech gauges were mostly lower. The
Nasdaq 100
was down fractionally, while the
Morgan Stanley High-Tech 35
was down 1%. The
Philadelphia Stock Exchange Computer Box Maker Index
was down 2%. The
Philadelphia Stock Exchange Semiconductor Index
, meanwhile, was up 1%.
Helping give the Net stocks a boost were positive comments from Henry Blodget, Internet analyst at
Merrill Lynch
, who until
recently worked at
CIBC Oppenheimer
. He issued his first ratings on some Net stocks for Merrill, rating
America Online
(AOL)
both near-term and long-term buy;
Amazon.com
(AMZN) - Get Report
near-term accumulate and long-term buy; and
Yahoo!
(YHOO)
near-term accumulate and long-term buy.
"We recommend that aggressive investors allocate a small percentage of capital to a basket of high-quality Internet stocks, such as America Online, Yahoo, and Amazon.com," Blodget said in an overview report on the industry.
"We regard the Internet as a global mega-trend, along the lines of the printing press, the telephone, and the computer, that is changing the way companies and people communicate, research, buy, sell, and distribute goods and services and spend leisure time."
Meanwhile, the saga surrounding
Lycos
(LCOS)
continued today. Lycos was a big winner today, up 12 3/4, or 13%, to 109. Lycos' largest shareholder,
CMGI
(CMGI)
, has hired
Morgan Stanley Dean Witter
to seek other suitors for Lycos in an effort to thwart the company's planned merger with
USA Networks
(USAI) - Get Report
,
The Wall Street Journal
reported. The newspaper reported that CMGI's chairman and chief executive, David S. Wetherell, said one of the options being considered is CMGI's outright purchase of Lycos. CMGI rose 2 to 196 1/2.
11:02 a.m.: Stocks Climb Slightly into Positive Territory
The Internet sector was one of the few standout areas of the market as the major barometers were up only slightly at midmorning.
TheStreet.com Internet Sector
index was up 17 to 586.
Lycos
(LCOS)
was the biggest gainer in the index, up 14 7/16, or 15%, to 110 9/16. Lycos' largest shareholder,
CMGI
(CMGI)
, has hired
Morgan Stanley Dean Witter
to seek other suitors for Lycos in an effort to thwart the company's planned merger with
USA Networks
(USAI) - Get Report
,
The Wall Street Journal
reported. The newspaper reported that CMGI's chairman and chief executive, David S. Wetherell, said one of the options being considered is CMGI's outright purchase of Lycos.
CMGI rose a more modest 5 1/2 to 199 7/8.
TheStreet.com E-Commerce Index
was up 3 to 107.
Elsewhere, the
Dow Jones Industrial Average
was up 12 to 9706. The
S&P 500
was up 1 to 1280. The
Nasdaq Composite Index
was up 7 to 2400. The small-cap
Russell 2000
up 1 to 400.
Meanwhile, the Treasury market wasn't giving the stock market a hand. The 30-year Treasury bond was down 5/32 to 95 23/32, yielding 5.55%, off its lows.
Scott Curtis, senior equity trader at
Brown Brothers Harriman
, in an interview when the long bond was around its lows, pointed out that the bond market was selling off somewhat ahead of tomorrow's
retail sales
report and on supply pressure from the corporate bond market.
In the news,
Banque Nationale de Paris
has made a $37 billion bid to buy
Societe Generale
and
Paribas
. Only last month, Societe Generale and Paribas agreed to get together. The news has failed to do much for bank stocks here.
Meanwhile,
DuPont's
(DD) - Get Report
board has authorized the creation of a "tracking" stock for its life sciences businesses. DuPont -- which has been reportedly in merger talks with
Monsanto
(MTC) - Get Report
-- said it is "actively seeking alliances with other strong partners in the pharmaceuticals industry."
In a news release, Charles O. Holliday Jr., DuPont chairman and chief executive, said: "Given the success of our discussions to date, we expect to be able to conclude one or more of these alliances by the end of this year."
DuPont was up 2 1/16 to 5 5/8.
Semiconductor stocks were higher, after falling sharply yesterday. The
Philadelphia Stock Exchange Semiconductor Index
tumbled a little more than 4% yesterday. Today the index is up 2%.
In general, tech stocks are trying to shrug off the
Intel
(INTC) - Get Report
preannouncement rumors, said Curtis.
Those rumors were a general drag on tech stocks yesterday. Intel was up 1 7/8 to 117 3/16.
Oil service stocks were flying again, with the
Philadelphia Stock Exchange Oil Service Index
jumping 6%.
On the
New York Stock Exchange
, advancers were beating decliners 1,382 to 1,127 on 221 million shares. On the
Nasdaq Stock Market
, winners were beating losers 1,609 to 1,418 on 280 million shares.
On the NYSE, 34 issues had set new 52-week highs while 32 had touched new lows. On the Nasdaq, 45 issues had set new highs while new lows totaled 24.
On the Big Board,
Compaq
(CPQ)
was most active, with 10 million shares changing hands. It was down 1 to 31 3/4.
On the Nasdaq,
Dell
(DELL) - Get Report
was most active, with 13 million shares changing hands. It was up 1/8 to 44 1/4.
10:05 a.m.: Stocks Mostly Lower at Open
Stocks mostly lower early on, with the Internet sector a bright spot.
TheStreet.com Internet Sector
was up 5 to 574.
TheStreet.com E-Commerce Index
was up 2 to 106.
The
Nasdaq Composite Index
was down 10 to 2383.
Elsewhere, the
Dow Jones Industrial Average
was down 9 to 9685. The
S&P 500
was down 4 to 1276. The
Russell 2000
was up 1 to 400.
The 30-year Treasury bond was down 9/32, to 95 19/32, yielding 5.55%.
Most Up at Open -- NYSE
America Online (AOL) , up 2 1/2 to 92 1/2
: Henry Blodget, Internet analyst at Merrill Lynch, who until
recently worked at
CIBC Oppenheimer
, has rated
America Online
(AOL)
both near-term and long-term buy.
Most Up at Open -- Nasdaq
Lycos (LCOS) , up 13 1/4 to 109 1/2
: Lycos' largest shareholder,
CMGI
(CMGI)
, has hired
Morgan Stanley Dean Witter
to seek other suitors for Lycos in an effort to thwart the company's planned merger with
USA Networks
(USAI) - Get Report
,
The Wall Street Journal
reported. The
Journal
reported that CMGI's chairman and chief executive, David S. Wetherell, said one of the options being considered is CMGI's outright purchase of Lycos.
Most Down at Open -- NYSE
Sap (SAP) - Get Report, down 1 7/16 to 25 15/16
: The German software company fell on concerns over slowing growth.
Most Down at Open -- Nasdaq
WPP Group (WPPGY) , down 2 3/4 to 86
.
