Mergers will dominate tech headlines Monday, as earnings season slows, and the Nasdaq tries to live up to last week's record gains. Asian markets were up, Europe was mixed, and the Dow is set to open slightly lower.
Two companies that recently made hot IPOs announced acquisitions Monday; Akamai Technologies Inc. (Nasdaq: AKAM) said it had signed a deal to acquire InterVu Inc., which develops systems to deliver video and audio over the Internet, for about $2.8 billion in stock. Kana Communications, Inc. (Nasdaq: KANA) said it will acquire SilkNet Software (Nasdaq: SILK) in a stock swap valued at $4.2 billion.
United Parcel Service (Nasdaq: UPS) will announce a foray into e-commerce with a new unit, eVentures, the Wall Street Journal reported Monday. The stock has slipped in recent weeks, after unimpressive earnings following its IPO.
On the earnings front, ISPs Earthlink Network Inc. (Nasdaq: ELNK) and Mindspring Enterprises (Nasdaq: MSGP) will report their last quarter as independent companies before their merger.
In economic news, a report on December demand for consumer credit will be released Monday. Economists forecast a level of $8.0 billion for December, compared with $15.6 billion in November.
Expect the following technology stocks to be among Monday's most actively traded: Be Inc, BMC Software, eBay and IBM.
Techs led the Nasdaq to another record high as the index topped off one of its best weeks ever. The Nasdaq Composite Index closed Friday at 4,244.14, up 33.16 and a new high. The S&P 500 slid 0.60 to 1,424.37 and the blue chip Dow Jones Industrial Average fell 49.64 to 10,963.80.
At the Bell
The Dow Jones industrial average may open about 27 points lower. The Standard & Poor's 500 index for June futures contracts was down 3.5 points to 1428 at 7:31 a.m. EST in 24-hour electronic trading.
The Inter@ctive Week @Net Index was down 4 to 575.85.
Trading in Asia was on an upswing. The Nikkei 225 rose 0.92 percent to 19,945, Singapore's Strait Times index gained 0.43 percent to 2,258 and Hong Kong's Hang Seng was closed for a holiday.
European markets were mixed. London's FTSE 100 climbed 0.19 percent to 6,197. The CAC 40 in Paris gained 0.64 percent to 6,316 and the Xetra DAX in Frankfurt was down 0.89 percent to 7,378 at 6:57 a.m. EST.
Reuters contributed to this report.