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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: T L Comiskey who wrote (10290)	10/30/2000 11:09:42 AM
From: T L Comiskey	Read Replies (2) \| Respond to of 65232

Tech Stocks Hit by Negative Cisco Comment NEW YORK (Reuters) - Blue-chip stocks rose on Monday, but high-tech shares wobbled after a leading Wall Street brokerage house cut its price target for the shares of Web infrastructure giant Cisco Systems Inc (CSCO.O). "The market is still keenly focused on technology (sector) troubles still, that serious cut on Cisco from Lehman," said Barry Hyman, chief market strategist for Weatherly Securities. "Lowering their long-term target to $60/$65, that is saying that there is no upside essentially," Hyman said. Lehman Brothers analyst Tim Luke on Monday said he lowered his 12-month price target for Cisco to $60 to $65 from $90 over concern about capital expenditures spending. Cisco shares, the most active stock on the Nasdaq, were off more than 2 percent, down $1-1/2 at $49-3/16 putting a damper on other related Nasdaq heavyweights, including Juniper Networks (JNPR.O), which fell $4 to $177. The technology-laced Nasdaq Composite Index (.IXIC) was down 27.97 points, or 0.85 percent, at 3,250.39, off earlier lows that took it more than 1 percent lower. Keeping a floor under the market was a surge in other heavyweights, among those computer maker Sun Microsystems (SUNW.O), up $2-13/16 at $106. Meanwhile, blue chips added to early gains, led higher by financials, drugs, and retailers attracting funds fleeing the Nasdaq. Blue-chip stocks were also helped by technology components like computer maker Hewlett-Packard (HWP.N), up $2-1/4 at $45-13/16. The Dow Jones industrial average (.DJI) was up 143.15 points, or 1.35 percent, at 10,733.77. The broader Standard & Poor's 500 Index (.SPX) was up 12.6 points, or 0.91 percent, at 1,392.18. On Friday, blue-chip stocks rose sharply with financials leading the way. But technology stocks finished flat despite good results from telecom-components supplier JDS Uniphase Corp. (JDU.TO)(JDSU.O). Investors were still jittery after Nortel Networks (NT.TO) (NT.N), the world's No. 2 telecom equipment maker, reported unexpectedly soft sales. Nortel, the most active share on the New York Stock Exchange, was off $1-11/16 at $40-7/8, while JDS Uniphase was off $2-1/4 at $75 on Nasdaq. Wall Street is bracing for a number of scorecards from Internet companies on Monday and eyes a slew of economic data this week. The latest economic data from the Commerce Department issued early on Monday showed that a surge in government subsidies paid to farmers helped push U.S. incomes and spending up at the fastest rate in nearly a year in September. Some analysts said these figures would be positive for the market generally, saying they showed the U.S. consumer was still active. Others however cited a negative impact from some components saying for instance that the bulk of the increase in incomes came from a surge in government subsidies paid to farmers, and excluding that, the core income rate rose only 0.4 percent in September.