(Updated from 2:51 p.m.)

The

Nasdaq Composite Index came bounding back after withstanding big losses during the past couple of days. And the

Dow Jones Industrial Average climbed to end the trading session near the 11,000 mark.

But today's focus was tech.

Cisco

(CSCO) - Get Report

gained 12% to $53.88 after it slid yesterday on news that

Lehman Brothers

had slashed its price target. It was the most actively traded stock today on the Nasdaq.

Fiber-optics also made a comeback after recent battering.

JDS Uniphase

(JDSU)

was up 14.1% and

Corning

(GLW) - Get Report

was higher by 7.8%. The stocks spent much of last week falling on

Nortel's

(NT)

disappointing revenue announcement. Other fiber-optics enjoyed the tech turnaround:

PMC-Sierra

(PMCS)

, up 11%,

Ciena

(CIEN) - Get Report

, up 15.9% and

Juniper Networks

(JNPR) - Get Report

, 17.2% higher.

One big drag was that ever-precocious

Rambus

(RMBS) - Get Report

, off 15.9%, on reports that

Intel

(INTC) - Get Report

will

phase out use of Rambus's DRAM chips in its platforms.

Intel helped boost the Dow, but it was

J.P. Morgan

(JPM) - Get Report

that was the darling of the day. It contributed 37 points to the Dow's total take for the day after

Deutsche Banc Alex. Brown

raised its rating to buy from market perform on J.P. Morgan's merger partner,

Chase Manhattan

(CMB)

.

Procter & Gamble

(PG) - Get Report

posted

first-quarter earnings in line with estimates, but concerns of slowing sales growth pulled the stock down. The consumer giant -- and a member of the Dow index -- lost 7%.

The pull would have been worse if the index didn't have so many supporters, including

Boeing

(BA) - Get Report

TheStreet Recommends

,

General Motors

(GM) - Get Report

and

IBM

(IBM) - Get Report

. IBM's board authorized an additional $3.5 billion buyback earlier today.

Sector Watch

The defensive favorites of yesterday were sagging today, with drugs and gold getting whacked. E-commerce and anything tech were big gainers.

The

American Stock Exchange Pharmaceutical Index

was 0.4% lower, and the

Philadelphia Stock Exchange Gold and Silver Index

was down 1.8%.

Meanwhile, Internet stocks were having a ball.

Yahoo!

(YHOO)

gained 11.4%, to $58.63, lifting

TheStreet.com Internet Sector

index to a 7.5% gain.

TheStreet.com E-Commerce Index

was 6.4% higher. It was lifted by components

Amazon.com

(AMZN) - Get Report

,

BroadVision

(BVSN) - Get Report

and

eBay

(EBAY) - Get Report

.

The

Philadelphia Stock Exchange Computer Box Maker Index

rose 4.1%, while the

Philadelphia Stock Exchange Semiconductor Index

jumped 5.5%.

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Bonds/Economy

After gaining earlier in the day, bonds had recently fallen back.

The benchmark 10-year

Treasury note is at 99 29/32, down 4/32, to yield 5.761%.

New home sales

rose to a seasonally adjusted annual rate of 946,000 in September from 866,000 in August, the fastest rate of sales since February. Mortgage interest rates have been declining steadily since mid-May and stand at their lowest levels in nearly a year.

The

BTM Weekly U.S. Retail Chain Store Sales Index

(

definition |

chart ) for the week ended Oct. 28 slipped 1.2% after a decline of 0.2% in the prior week.

The

APICS Business Outlook Index

(

definition |

chart |

source

) for September rose to 53.5 from 49.3 in August.

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