Stocks are seeing continued weakness in afternoon trading on Monday, although selling pressure has waned from earlier in the session. The major averages have moved well off their worst levels of the day, but they continue to post steep losses.

With traders reacting to reports on the collapse of merger talks between IBM (IBM) and Sun Microsystems (JAVA), computer hardware stocks are turning in some of the worst performances. Sun is leading the sector lower, falling 24.6 percent.

Metal, railroad, and banking stocks are also posting notable losses, with the weakness in the banking sector partly due to some negative analyst comments. On the other hand, considerable strength remains visible among health insurance and airline stocks.

The major averages have moved roughly sideways in recent trading, lingering firmly in negative territory. The Dow is currently down 120.19 at 7,897.40, the Nasdaq is down 32.26 at 1,589.61 and the S&P 500 is down 15.29 at 827.21.

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