A downgrade on chip-maker
US Bancorp Piper Jaffray
and on the entire drug sector by
Banc of America Securities
this morning knocked the major indices off their feet in early trading.
Market watchers initially were expecting last week's quiet optimism to trickle over into this week, particularly following Friday's friendly jobs and manufacturing activity data.
Dow Jones Industrial Average was bloodied early on by Intel and drug component
, which were chipping 17 and 13 points from the index in early trading, respectively. The Dow was lately down 16 to 11,223.
The tech heavy
Nasdaq Composite Index was also getting bashed by Intel and Internet heavy-hitter
, and was 41 lower to 4194. There was no new news on Yahoo this morning.
Elsewhere in the market, the broader
S&P 500 was down 6.9 to 1514, the small-cap
was down 1 to 541.
Despite weakness in Yahoo,
TheStreet.com Internet Sector
index was up 3.2 to 849.9.
Investors' least favorite sectors so far this morning were health care and biotechnology.
American Stock Exchange Pharmaceutical Index
was lately 2% lower to 383 after
Banc of America
downgraded the entire group to market perform from overweight on concerns of slowing growth. Sector heavyweight
, which was lowered to market performer from strong buy, was off 3.7% to $66.63.
was off 1.3% to $42.69.
Nasdaq Biotechnology Index
was down 1.7% to 1357.
Other big movers were
, which was off 2.4% to $56.25. 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 continued to trail lower this morning, with the benchmark 10-year note down 5/32 at 100 10/32, and yielding 5.710%.
Back to top