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The Dow Now: Hewlett-Packard Gains After Announcing More Job Cuts


Alcoa also gains ground.

MINYANVILLE ORIGINAL After dipping briefly in early morning trading due to much weaker-than-expected economic data from China, US equities rebounded at midday and are now hovering at the level of last Friday's close.

With investors awaiting the announcement of further quantitative easing later this week by the Fed, the Dow Jones Industrial Average (^DJI) is up a slight 0.03% to 13,310.77 points as of 12:08 p.m.

Leading the Dow gainers is Hewlett-Packard (HPQ), up 1.80% to $17.60. The PC maker earlier said in a regulatory filing that it plans to lay off 2,000 more employees than previously announced, bringing the total number of jobs cut to around 29,000 over the next two years. HP also revised its expected restructuring costs up to $3.7 billion from $3.5 billion.

Alcoa (AA) also jumped 1.48% to $9.24 after reports that Swiss industrial group Klesch has expressed interested in buying the industrial giant's struggling smelter plant in Sadinia, Italy.

Despite HP's rise, tech stocks are on the decline overall, with both Intel (INTC) (-3.18% to $23.42) and Cisco (CSCO) (-1.48% to $19.27) down in intraday trading. Last week, Intel lowered its third-quarter sales forecast, citing a drop in demand for personal computers from corporate clients due to a slowing economy.

Boeing (BA) is also a decliner, dipping 1.87% to $71.53. According to the Wall Street Journal, the leading aerospace company is still locked in tense contract negotiations with the engineers' unions. If both parties do not reach an agreement before the contracts for some 22,000 engineers expire on Oct. 6, the employees might go on strike, which would result in a delay in the delivery of new planes.

Twitter: @sterlingwong
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