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Tech Industry

MARKET CLOSE: Market rides telecoms higher

Telecom stocks led Wall Street higher Monday.

The tech-heavy Nasdaq Composite Index rose 59.12 to 2795.97, the S&P 500 gained 21.24 to 1304.05, and Inter@ctive Week's @100 Index advanced 103.39 to 5,027.97. The Dow Jones Industrial Average moved up 128.23 to 10401.23.

All eyes were on Sprint and whether it would accept MCI WorldCom's (Nasdaq: WCOM) bid for the company or BellSouth's (NYSE: BLS) offer. Sprint advanced 3 1/8 to 60 1/8, MCI WorldCom added 1 1/8 to 71 5/8 and BellSouth fell 2 11/16 to 42 11/16.

Meanwhile, AT&T Corp. (NYSE: T) was mum about reports that it would offer tracking stocks for its three major units. Investors evidently liked the idea, as AT&T shares acquired 1 7/8 to 43 5/8.

Adding to the day's menu of telecommunications talk, Paul Allen's Vulcan Ventures invested $1.65 billion in RCN Corp. Shares of RCN (Nasdaq: RCNC) were up 7 21/32 to 45 23/32. Other players in the RCN deal included High Speed Access (Nasdaq: HSAC), up 3 7/8 to 26 7/8, and Go2Net (Nasdaq: GNET), up 13/32 to 61 9/16.

Other heavily traded communications stocks included Qwest Communications (Nasdaq: QWST), up 2 13/16 to 32 11/16; recent IPO Williams Communications (NYSE: WCG), gaining 4 3/16 to 32 1/4; and Global Crossing (Nasdaq: GBLX), down 15/16 to 25.

The dealmaking spilled over into Internet issues as long-suffering Preview Travel (Nasdaq: PTVL) shareholders rejoiced over a merger with Travelocity.com. Shares of Preview jumped 6 11/16 to 24 5/16. Travelocity's parent, Sabre Holdings (NYSE: TSG), rose 6 1/8 to 49 1/2.

Enterprise IT provider Computer Network Technology Corp. (Nasdaq: CMNT) went up 2 3/4 to 10 7/8 after SG Cowen analyst Christopher Stix reiterated a "strong buy" rating on the stock.

Ezenia Inc. (Nasdaq: VSVR), which specializes in technology for conferences over corporate networks and the Internet, moved down 2 3/8 to 5 1/4. The company warned it would report a third quarter loss ranging between 10 and 12 cents per share.

A quarterly warning also knocked down shares of Persistence Software (Nasdaq: PRSW), which plummeted 11 3/4 to 14 5/16. The company, which makes e-commerce software, expects to report lower-than-expected third quarter revenue because of delays in closing a large contract.

Wall Street was awaiting earnings from Micron Technology (NYSE: MU), which was up 2 3/8 to 73 7/8. Advanced Micro Devices (NYSE: AMD), which reports earnings Wednesday, rose 5/8 to 17 7/8.

Apple Computer (Nasdaq: AAPL) increased 2 27/32 to 64 9/16. Many observers believe the company plans to introduce new iMacs at a news conference tomorrow.

Among other heavily traded technology stocks, Intel (Nasdaq: INTC) increased 2 1/16 to 77, Novell Inc. (Nasdaq: NOVL) slid 1 11/32 to 17 11/32, and Dell Corp. (Nasdaq: DELL) went up 23/32 to 43 1/4. >