Nasdaq Jumps on Dow Additions
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News that two technology leaders will soon join the Dow Jones industrial average was helping send the Nasdaq Composite higher Tuesday. In the Internet sector, deals and earnings news continued to dominate.
Just before noon, internet.com's Internet Stock Index was up 5.03, or .91 percent, to 557.34, the Nasdaq Composite had jumped 39.19 to 2,855.14 and the Dow Jones industrial average had gained 39.90 to 10,389.93.
The Dow got a major facelift Tuesday with the announcement that technology heavyweights Microsoft Corp. (MSFT) and Intel Corp. (INTC) would join the 30-stock index. Also moving to the Dow are Home Depot and SBC Communications. Being removed are Sears Roebuck & Co., Chevron, Union Carbide and Goodyear Tire.
This marks the first time since the index's 1896 creation that a stock outside the New York Stock Exchange will be a Dow Component. Both companies will continue to trade on the Nasdaq National Market. The changes will take effect Monday. The news had sent Microsoft up 2-1/16 to 94-1/2 and Intel had gained 2-9/16 to 73-13/16.
Homestore.com Inc. (HOMS) had jumped 5-1/16 to 47-1/8 after Jamie Kiggen of Donaldson Lufkin & Jenrette raised his rating to "buy" from "market perform." Kiggen also set a 12-month price target of $60.
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