(Updated from 3:14 p.m.)
An Old Economy stock turnaround continued charged the
Dow to a positive close, while the
Nasdaq remained in the red, feeling the heat from a tech giant's downgrade.
Thanks to a midday comeback from its defense and financial components, the blue-chip index overcame big losses from tech and drugs stocks and struck up a rally.
The Dow finished the day up 21.83 11,260.61.
fell 6.3% after
US Bancorp Piper Jaffray
analyst Ashok Kumar cut his rating on the semiconductor company to buy from strong buy. Drugs also were under the weather on news that
Banc of America
downgraded the group.
was lost 1.6%.
American Stock Exchange Pharmaceutical Index
was lately 2.7% lower.
The Nasdaq was shed 91.1 to 4143.2, with big losses from biotech.
was sliding 6.6% after it said it would take on a fourth-quarter charge.
Nasdaq Biotechnology Index
was down 3.1%.
And with tech and drug stocks losing ground, retailers were receiving some investor attention.
was 2.6% higher, while
was lifting 3.99%. The group has been hit hard in recent weeks after a slowdown in consumer spending made for some lackluster August retail sales numbers.
Oil stocks were also ticking ahead, after slipping earlier in the session. This morning, oil-service giant
came under pressure after
Donaldson Lufkin & Jenrette
lowered its rating because of its recent run-up. The group has seen big gains in recent weeks with the high price of crude oil.
Elsewhere, the broad
S&P 500 lost13.68 to 1507.09, while the small-cap
shed 2.89 to 539.02.
TheStreet.com Internet Index
was higher by 22.14 to 868.84.
Dow Jones Utility Average
was popping 1.3% to 369.68 after earlier reaching a new intra-day trading high of 371.23.
Broker investors were taking some of last week's profits, after merger speculation instigated a huge run-up.
were all posting losses, but the
American Stock Exchange Broker/Dealer Index
remained up fractionally.
Big movers included
, which was off 2.2%. Over the weekend, news came out that the
Federal Trade Commission
likely will block AOL's $129 billion acquisition of
unless the companies agree to let competitors use their cable lines.
wrote about the
FTC's concerns in a separate story.
was the big noise in telecom. The company confirmed this morning that it will buy telecom provider
for close to $3 billion in cash as well as payment of more than $3 billion in Intermedia's debt.
Treasuries were flat, with the benchmark 10-year note at 100 15/32, yielding 5.689%.