Investors jumped back into the technology sector Monday, snapping up discounted shares of leading bellwethers. The Nasdaq composite closed up 104 points to 3,767.05 while the Dow Jones industrial average added 11 points to close at 10,521. 98.
"We lost 10.5 percent on the Nasdaq last week," said Bill Meehan, chief market analyst at Cantor Fitzgerald. "We will probably see some sort of a bounce. I don't think it will last for long. The fundamentals have been shaky for some time. How much can one pay for technology?''
Shares of National Computer Systems Inc. (Nasdaq: NLCS) jumped up 13 3/4 to 71 7/8 after British media firm Pearson PLC announced plans to acquire it in a $2.5 billion deal. NCS provides software and Internet-based services for the collection and interpretation of educational data. It is the largest processor of student assessment tests in the US.
Oracle (ORCL) shares moved up 2 13/16 to 75 3/16 while Sun Microsystems (SUNW) and Microsoft (MSFT) added 2 5/8 and 1/8 a share, respectively.
Broadcom Corp. (Nasdaq: BRCM), which makes circuits for high-speed telecommunications, announced plans to acquire Altima Communications Inc. for about $533 in stock. Privately-held Altima makes networking integrated circuits for the small and medium sized business market. Broadcom shares closed up 11 3/16 to 224 1/4.
Intel (INTC) shares moved up 2 3/16 to 66 3/4 after its 2-for-1 stock split. Advanced Micro Devices (AMD) gained 1 to 72 and IBM (IBM) closed up 5/8 to 112 7/16.
Yahoo! (YHOO) shares moved up 1 15/16 to 128 11/16. America Online (AOL) lost 9/16 to 53 1/4 while Amazon.com (AMZN) and eBay (EBAY) jumped 1/8 and 3 1/8 a share, respectively. Lycos (LCOS) ended up 2 9/16 to 60 5/8.
Juno Online Services Inc. (Nasdaq: JWEB) picked up 1 1/16 to 9 1/16 after it announced a deal to offer high-speed Internet service over Time-Warner Inc. (NYSE: TWX) cable systems. The deal comes as Time Warner's open access policies have come under scrutiny in light of the company's proposed merge with AOL. Time-Warner (TWX) shares closed up 1 5/16 to 76 11/16.
Among widely held PC stocks, Dell (DELL) gained 1/16 to 43 3/4; Gateway (GTW) added 1/8 to 69 13/16; Compaq (CPQ) closed up 1/16 to 28 1/16 and Apple Computer (AAPL) finished up 2 1/2 to 50 13/16.
Cisco Systems (CSCO) rose 2 5/8 to 65 7/16. Nortel Networks (NT) added 3/4 to 74 3/8 and Lucent Technologies (LU) trimmed 1 11/16 to 43 13/16.