MARKET CLOSE: Dow, Nasdaq move higher

2 min read

Technology stocks moved higher Monday as bargain hunters pounced on the downtrodden sector, pushing the Nasdaq composite up 25 points to close at 2,142.89.

The Dow Jones industrial average moved up 96 points to finish at 10,562.30.

"We have finally come to the point where we have a price-news divergence meaning stocks don't go down on bad news," said Arthur Hogan, chief market strategist at Jefferies & Co. "That is typical of a (market) bottom."

Intel (Nasdaq: INTC) moved up $1.06 to $30.38, while Advanced Micro Devices (NYSE: AMD) and IBM (NYSE: IBM) gained $1.39 and $2.61 a share, respectively.

Two more chipmakers warned of slowing sales growth as Vitesse Semiconductor (Nasdaq: VTSS) and LSI Logic (NYSE: LSI) reduced forecasts for their upcoming quarters, blaming continued weakness from communications and data-storage customers. Vitesse shares closed up $1.25 to $39.06 and LSI rose 51 cents to $16.82.

The economic slowdown has also trickled down to Cypress Semiconductor (NYSE: CY), which said it would fall short of revenue expectations for the first quarter. The stock gained 27 cents to $19.13.

Juniper Networks added $5 to $58.63 even though USB Warburg cut its 12-month price target from $250 a share to $100 a share. Cisco Systems (Nasdaq: CSCO) moved up 89 cents to $23.08, while Lucent Technologies (NYSE: LU) and Nortel Networks (NYSE: NT) picked up 35 cents and 37 cents a share, respectively.

Among widely held PC stocks, Dell (Nasdaq: DELL) rose $1.38 to $23.44, Apple Computer (Nasdaq: AAPL) picked up $1.13 to $20.38, Gateway (NYSE: GTW) tacked on 62 cents to $16.07 and Compaq (NYSE: CPQ) finished up 7 cents to $20.07.

Amazon (Nasdaq: AMZN) closed up $2.63 to $12.63 on speculation it would strike a deal with Wal-Mart (NYSE: WMT), off 55 cents to $48.37.

AOL Time Warner (NYSE: AOL) rose $1.74 to $43.80, and Yahoo (Nasdaq: YHOO) gained 50 cents to $22.19. eBay (Nasdaq: EBAY) added 31 cents to $38 and CMGI (Nasdaq: CMGI) finished up 9 cents to $4.06.

Microsoft (Nasdaq: MSFT) rose 75 cents to $57.44. Oracle (Nasdaq: ORCL) picked up 13 cents to $17, and Sun Microsystems (Nasdaq: SUNW) closed up $1.31 to $20.94.

ZDII staff and Reuters contributed to this roundup.