NEW YORK (CNNfn) - The Dow Jones industrial average won on Wall Street Monday as investors shifted their focus to the U.S. presidential election and rotated money out of some tech issues into blue chips, seen as providing some safety for investors' money.
"Investors are re-allocating their money and still shifting away from technology," said Roy Blumberg, chief equity strategist at Stern, Agee & Leach Inc. "There's still some nervousness about technology.
 The Dow jumped 159.26 points, or more than 1 percent, to 10,977.21. That put the blue chip indicator within 23 points of the key 11,000 level, which it hasn't reached since mid-September.
"With the exception of the Dow, it (was) eerily quiet, waiting for Cisco's results," said Ned Riley, chief investment strategist at State Street Global Advisors. "The Dow is clearly the strongest (today) and it's because there's still a lot of money flowing out of technology."
The Nasdaq composite index wobbled in a holding pattern with most tech players waiting for Cisco Systems to report its first-quarter results after the closing bell. Action on the composite was led by selling in Cisco and VA Linux with buying in Intel, Microsoft and WorldCom.
 The Nasdaq struggled between positive and negative territory throughout the session, finally losing 35.37 points, or about 1 percent, to 3,416.21 while the S&P 500 gained 5.50 to 1,432.19.
Still, Bryan Piskorowski, market analyst at Prudential Securities, told CNNfn's market coverage that the Nasdaq is gaining some solid footing after taking a beating since the spring. (336K WAV) (336K AIFF)
Market breadth was negative, although volume was tepid in advance of the election. On the New York Stock Exchange, decliners beat advancers 1,379 to 1,413, as more than 922 million shares were traded. Losers topped winners 2,141 to 1,804, on the Nasdaq as more than 1.5 million shares changed hands.
In other markets, Treasurys faltered. The dollar fell against the euro but rose versus the yen.
Gearing up for the election
Much of the action was muted ahead of Tuesday's election with many investors opting to sit on the sidelines.
"Overall, it's wait and see until late Tuesday night or early Wednesday morning," said State Street's Riley. "I think the market has already factored in a Bush victory and is just waiting for confirmation."
Click here for CNN.com Election 2000 coverage
In the latest CNN/USA Today/Gallup two-day tracking poll, Texas Gov. George W. Bush's lead over Vice President Al Gore was 2 percentage points, 47-45.
"You've already seen what the market is betting on," Gregg Hymowitz, money manager with EnTrust Capital, told CNNfn's Market Call. "Clearly the market believes a Bush win would be good for the market, but it's much more important to focus on valuations and quality companies."
Among issues perceived as being "pro-Bush," Merck (MRK: Research, Estimates) jumped $2.13 to $90, Johnson & Johnson (JNJ: Research, Estimates) gained 38 cents to $92.06, and Philip Morris (MO: Research, Estimates) fell 13 cents to $34.78.
The European Union filed a suit against Philip Morris and rival cigarette maker R.J. Reynolds Tobacco Holdings Monday, accusing them of smuggling tobacco into Europe.
R.J. Reynolds (RJR: Research, Estimates) shares dropped 38 cents to $34.63.
Other stocks boosting the Dow included J.P. Morgan (JPM: Research, Estimates), which gained $4.81 to $166.31, and General Motors (GM: Research, Estimates), which jumped $3.94 to $60.94.
The European Union filed a suit against Philip Morris and rival cigarette maker R.J. Reynolds Tobacco Holdings Monday, accusing them of smuggling tobacco into Europe.
R.J. Reynolds (RJR: Research, Estimates) shares rose 13 cents to $35.13.
Other stocks boosting the Dow included J.P. Morgan (JPM: Research, Estimates), which gained $4.44 to $165.94, and General Motors (GM: Research, Estimates), which jumped $3.13 to $60.13.
Click here to see which stocks may be impacted the most by the election
EnTrust's Hymowitz said the bets had already been placed in favor of which candidate investors feel would best serve the markets -- but focus is starting to shift back to what direction interest rates may move.
"Clearly people feel less wealthy and people are going to focus on what happens to the direction of interest rates," said Hymowitz. "Over the next couple of weeks, as the election subsides attention is going to shift to (Federal Reserve Chairman) Alan Greenspan."
After six interest rate hikes since June 1999, most of the incoming economic data have been pointing to a slowing economy but investors are not convinced that the Federal Reserve will leave interest rates untouched through the end of the year. The Fed's next policy-making meeting is scheduled for Nov. 15.
Waiting for Cisco
With most of the major company quarterly results already posted, at least one major tech bellwether is due to report after the closing bell.
Cisco Systems (CSCO: Research, Estimates) slumped $1.63 to $55.13. The company will report fiscal first-quarter earnings after the bell, and some analysts believe the maker of computer and communications network products could be vulnerable to softer demand in the high-growth markets it depends on for its booming sales.
In the day's other tech news, VA Linux Systems (LNUX: Research, Estimates) fell $12.63 to $17.38 after the developer of software and products for the Linux computer operating system said its fiscal first-quarter results would not meet expectations due to slower-than-expected sales growth from new customers "in the dot.com sector."
Select buying helped temper losses on the tech heavy Nasdaq. Qualcomm (QCOM: Research, Estimates) gained 6 cents to $70.56, Intel (INTC: Research, Estimates) rose 63 cents to $46.56, and Microsoft (MSFT: Research, Estimates) jumped $1.25 to $69.50. 
|
