Reboot, if that doesn't work, reinstall. Somebody had a similar problem yesterday and resolved it by some kind of a sync maneuver in iTunes I believe.
I found it. The update put it in the 'newsstand' folder. I believe this is what ios5 intends to do.
The question, why other news app such as 'USA Today', 'Houston Chronicle', 'US News' still take its own place? Guess these app developers are not quite as ready as those at 'The Daily'
Sent from my iPad using iPF