Techs rise, blue chips dip

NEW YORK (CNNMoney.com) -- Cisco's strong earnings and forecast lifted the tech sector Thursday morning, but the broader market struggled amid higher oil prices and concerns over what a Democratic Party-controlled Congress will mean for certain sectors.

The tech-fueled Nasdaq composite (up 10.12 to 2,395.06, Charts) added 0.3 percent roughly an hour into the session, giving back bigger opening gains. On Wednesday, the Nasdaq closed at its highest level since February 2001.

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The Dow Jones industrial average (down 29.05 to 12,147.49, Charts) lost 0.2 percent, after ending the previous session at a fresh all-time high. The broader S&P 500 (down 0.43 to 1,385.29, Charts) index was little changed.

Stocks rose modestly Wednesday at the end of a tough session as investors tried to come to terms with the reality of the Democratic Party controlling all of Congress, something the market had not been expecting.

The implications of the new political landscape remained in focus Thursday, but shared the stage with corporate and economic news.

Cisco Systems (up $1.85 to $26.95, Charts) rallied Thursday morning and gave a boost to the broader tech sector.

After the close Wednesday, Cisco reported higher fiscal first-quarter earnings and sales that topped estimates. The company also issued a bullish fiscal second-quarter revenue outlook.

A variety of gold and silver industry stocks rallied, jumping in tune with the price of the raw commodity.

The Amex Gold Bugs (up $5.34 to $332.84, Charts) index added nearly 1 percent, while the iShares Silver Trust (up $3.46 to $127.63, Charts) index added 2.5 percent.

But drug, defense and healthcare stocks continued to slip, reflecting Wall Street's concerns about how new Democratic Party legislation might impact those sectors.

Dow 30 components Merck (down $0.94 to $43.40, Charts), Johnson & Johnson (down $0.91 to $67.08, Charts) and Pfizer (down $0.36 to $26.26, Charts) all declined.

Market breadth was negative. On the New York Stock Exchange, losers beat winners four to three on volume of 370 million shares. On the Nasdaq, decliners topped advancers three to two on volume of 640 million shares.

In economic news, the U.S. trade deficit narrowed more than what analysts were expecting in September, due to lower oil prices and record exports.

Weekly jobless claims fell a greater-than-expected 20,000 to 308,000, reflecting strength in the labor market.

U.S. light crude oil for December delivery rose 97 cents to $60.80 a barrel on the New York Mercantile Exchange.

Treasury prices were little changed from late Wednesday, with the yield on the 10-year note holding at 4.63 percent. Bond prices and yields move in opposite directions.

COMEX gold rose $9.20 to $627.50 an ounce.

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