There was selling in tech. All right, there wasn't much selling, but it's something.
Investors seemed concerned about the numbers they're going to see
this week from such heavyweights as computer maker
Also putting pressure on the sector was a weighty blow from
, which downgraded several semiconductor stocks, saying "we are adjusting our ratings to differentiate those stocks which we think should be aggressively pursued as they move higher." The
Philadelphia Stock Exchange Semiconductor Index
, which tracks the chip sector, was down 5.1%. Industry leader
was down 2.3% ahead of its earnings report, which comes out after the close. Investors will be listening closely to see what guidance Intel -- and other companies, as they report earnings, gives about future earnings.
While the tech-soaked
Nasdaq Composite Index was a touch lower, the blue-chip
Dow Jones Industrial Average surged higher.
In the land of telecom,
Deutsche Banc Alex. Brown
said increasing concern about the telecommunications equipment environment in 2001 caused it to cut ratings on
Advanced Fibre Communications
. Both stocks ended lower.
So many tech stocks have been hurt as companies have cut back their capital expenditures in the face of an economic slowdown. But all was not lost in techland.
was bouncing 36.5% on news that it would be bought by Intel for $748 million. Xircom makes mobile computing gear. And radio broadcaster
was jumping after private investment firm,
, said it would buy the company for $2 billion. The stock was up 41.4%.
And then it was raining cats and dogs for
, which got showered with gains of 28% on news the St. Louis-based pet food maker agreed to be acquired by Swiss food giant
. The deal is worth about $10.3 billion.
As is happening often these days, stocks that were beaten-down last week are getting some healing hands today.
Procter & Gamble
were each adding more than 10 points to the Dow's gains.
TheStreet.com Internet Sector
the DOT, continued its rally from Friday. The beaten up Internet company index was up 2.1%, with help coming from
Dow Jones Utility Average
was down 1.8%.
Southern California Edison unit temporarily suspended payments to creditors in an effort to conserve cash and force the hand of regulators to bail them out in the ongoing California energy crisis.
Bank stocks were higher.
Bank of New York
this morning announced earnings that met analysts expectations.
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Treasuries moved a bit higher, reversing their price drop of the last five trading days.
Much of their recent drop in value was due to heavy buying of federal agency and corporate issues. The news last Friday of stronger-than-expected retail sales and lingering threats of inflation also reduced anticipation of a major corrective move by the
Federal Reserve-- and kept traders away from government securities. Now their focus is back on Treasuries, and many are in the market to snap up bargains.
Still, analysts are projecting that the
Consumer Price Index, to be released tomorrow morning, will show that inflation has been checked. And they say the softening business inventory data is reviving hopes of the Fed will make another substantial rate cut when it meets at the end of the month.
) for November rose 0.5% after an increase of 0.7% in October. Economists polled by
had forecasted a rise of 0.4%. The number has now risen continuously for almost two years, and reflects the steady weakening in business spending.
The benchmark 10-year
Treasury note lately was up 2/32 to 103 27/32, lowering its yield to 5.234%.
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