Dow Jones Industrial Average celebrated along with Yankee fans,
was gave the
Nasdaq Composite Index a juicy Bronx cheer.
slashed Cisco's 12-month price target to $60 to $65 from $90, which kicked off tech stocks' slide to the downside.
Cisco reported in early August that its fiscal fourth-quarter profits topped analyst expectations, strengthened by strong sales to Internet service providers, cable and telephone companies. But the opticals and networking group has been under fire since last week, when
warned of weakness in optical sales for the year. Tech stocks in general have gotten whacked this quarter, as a slew of third-quarter earnings disappointments have investors worried that price-to-earnings valuations in the sector remain too high.
Investors may have had one too many disappointments in techs, too, which was good for Old Economy stocks. The Dow enjoyed its second straight session of 200-plus gains. Usually there's one standout in the index that helps boost it, but today's rally was widespread, with
leading the blue-chips.
International Paper rose on an upgrade in its sector by
Deutsche Banc Alex. Brown
. Alcoa and DuPont were up on their own news: Friday, the
cleared Alcoa's plans to buy
, and today, DuPont announced that it would combine its apparel, home textiles and related businesses into one unit.
But, back to the Comp, which got stomped by such big-cap tech stocks as
, down $6.75, or 9%, to $68.13;
, off $2.56, or 7.5%, to $31.63; and
, $2.75, or 7.7%, lower to $32.88.
continued to fall after saying last week that it was lowering sales projections for two of its lead drugs. That announcement spread fear throughout the biotech sector, and the
Nasdaq Biotechnology Index
was 3.4% lower.
Elsewhere in the market,
, publisher of
, was down 25% on news that it's buying
in a $690 million deal. About.com was up 1.3%.
, which completed its merger with
, jumped 18%. The combined company starts trading on the Nasdaq under the ticker "TRLY" tomorrow.
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changed the weightings in its global portfolio, cutting investments in the financial sector to underweight, cutting defensives to neutral and raising its weighting for cyclicals. The
Morgan Stanley Cyclical Index
jumped 5.9%. But the market seemed to pay little attention as far as financials were concerned. The
American Stock Exchange Broker/Dealer Index
was up 3.1%, while the
Philadelphia Stock Exchange/KBW Bank Index
was rising 3.9%.
Paper stocks were flying after receiving an upgrade from Deutsche Banc Alex. Brown this morning. Both Dow component International Paper and
were upgraded to strong buy from buy. International Paper was up 8.3%, Bowater was 11.1% higher and the
Philadelphia Stock Exchange Forest & Paper Products Index
was 7.7% higher.
American Stock Exchange Airline Index
was shooting up 7%, while the
Dow Jones Transportation Average
rose 6.2%. The component helping both was
Delta Air Lines
, which is reportedly in talks with
to join their international alliance.
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The bond market shrugged off this morning' stronger-than-expected economic data, but the benchmark 10-year
Treasury note was lately unchanged at 100 1/32, its yield to 5.744%.
Treasury bond was at 106 30/32, down 5/32, and yielding 5.758%.
Personal income and consumption
) for September were both higher. Personal income rose 1.1%, ahead of forecasts of a 0.4% rise; it was also above the prior month's increase of 0.4%. Personal consumption rose 0.8%, beating forecasts of a 0.6% increase.
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