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While the

Dow Jones Industrial Average celebrated along with Yankee fans,



was gave the

Nasdaq Composite Index a juicy Bronx cheer.

Lehman Brothers

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

Nortel Networks


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

International Paper








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

European Commission

cleared Alcoa's plans to buy

British Aluminum

, 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



New York


Modern Bride

, was down 25% on news that it's buying


in a $690 million deal. was up 1.3%.


Terra Networks


, which completed its merger with



, jumped 18%. The combined company starts trading on the Nasdaq under the ticker "TRLY" tomorrow.

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Sector Watch

Lehman Brothers

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

British Airways


Air France

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%.

The 30-year

Treasury bond was at 106 30/32, down 5/32, and yielding 5.758%.

Personal income and consumption


definition |

chart |


) 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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