Technology stocks got off to a good start this week as the Nasdaq composite gained 41 points to finish at 2,116.46. The Dow Jones industrial average spent much of the day in positive territory before falling 75 points, closing at 10,734.97.
In economic news, U.S. income growth in March outpaced spending for the second month in a row, according to a Commerce Department report released Monday. Personal income grew at a seasonally adjusted 0.5 percent annual rate in March, matching February's pace. The news lifted prospects that the U.S. economy can avoid a recession.
"More or less, the market is trading off of Friday's GDP (gross domestic product) number," Matthew Johnson, head of U.S. cash trading at Lehman Brothers, told Reuters. "The market is getting less defensive, and people are investing in tech, believing that the bottom has been put in."
Microsoft (Nasdaq: MSFT) shares added 63 cents to $67.75. Oracle (Nasdaq: ORCL) dropped 99 cents to close at $16.16, and Sun Microsystems (Nasdaq: SUNW) finished off 26 cents to $17.12.
Network-equipment shares enjoyed strong gains, led by Ciena (Nasdaq: CIEN), up $4.77 to $55.06. Cisco Systems (Nasdaq: CSCO) tacked on $1.38 to $16.98, while Nortel Networks (NYSE: NT) and JDS Uniphase (Nasdaq: JDSU) rose 46 cents and $2.12 a share, respectively.
BroadVision (Nasdaq: BVSN) shares closed up 88 cents to $6.39 on news that retailing giant Wal-Mart will use its e-commerce software.
Business-to-business company Ariba (Nasdaq: ARBA), up 34 cents to $7.73, named a new CEO. Larry Mueller will replace co-founder Keith Krach in that position. Competitors PurchasePro.com (Nasdaq: PPRO) and Commerce One (Nasdaq: CMRC) fell 17 cents and 23 cents a share, respectively.
Comverse Technology (Nasdaq: CMVT) shares lost $1.61 to $68.50 after it said it will reduce staff by 6 percent, but said it will meet previously announced sales and earnings figures for the first quarter and fiscal year.
Intel (Nasdaq: INTC) gained 73 cents to $30.91. Advanced Micro Devices (NYSE: AMD) picked up $1 to $31, and IBM (NYSE: IBM) finished off $1.06 to $115.14.
Among widely held PC stocks, Dell Computer (Nasdaq: DELL) inched up 29 cents to $26.29, Gateway (NYSE: GTW) lopped off 50 cents to $19, Apple Computer (Nasdaq: AAPL) clipped 71 cents to finish at $25.49 and Compaq Computer (NYSE: CPQ) closed off 70 cents to $17.50.
Yahoo (Nasdaq: YHOO) moved up 68 cents to $20.18. America Online Time Warner (NYSE: AOL) gained 51 cents to $50.50, while Amazon.com (Nasdaq: AMZN) and CMGI (Nasdaq: CMGI) added 51 cents and 11 cents a share, respectively. eBay (Nasdaq: EBAY) closed up $3.61 to $50.48.
ZDII staff and Reuters contributed to this roundup.