Battered Sectors Storm Back

Updated from 12:55 p.m. EDT

Investors who didn't bail out of their airline and technology shares last week are seeing some of their losses retraced Monday.

Airlines

Airlines were pounded most of last week, then rebounded Friday as hopes surfaced for a bailout package. They were higher again, with AMR(AMR Quote), the parent of American Airlines and TWA, up 2.2% to $18.30. Delta Air Lines(DAL Quote) also was a big winner, up 6.8% to $23.99. UAL(UAL Quote), the holding company for United Airlines, rose 5.4% to $18.06, while Northwest(NWAC Quote) gained 5.4% to $11.01.

Continental(CAL Quote) jumped 5.8% to $15.51, while US Airways(U Quote) rocketed 15.2% to $5.24. Southwest(LUV Quote) was up 1.1% to $13.75.

Technology

Investors were also putting their money back into tech on Monday. Dell(DELL Quote) rose 11.9% to $18.60, while Microsoft(MSFT Quote), gained 4.6% to $52.01. Oracle(ORCL Quote) jumped 16.4% to $12.52, and Cisco(CSCO Quote) was up 3.9% to $12.56. Sun Microsystems(SUNW Quote) rose 9.7% to $8.73, and Intel(INTC Quote) gained 10.1% to $21.25.

Aerospace & Defense

Defense contractors closed lower. Raytheon(RTN Quote) was down 2.8%, while Northrop Grumman(NOC Quote) lost 1.7%, and Lockheed Martin(LMT Quote) was off 0.5%.

Brokerages

Brokerage stocks fought back Monday. Morgan Stanley(MWD Quote) gained 6.2% to $42.55, while Goldman Sachs(GS Quote) was up 4.2% to $70.51. Merrill Lynch(MER Quote) rose 3% to $38.77, while Lehman Brothers(LEH Quote) jumped 8.5% to $51.55. Charles Schwab(SCH Quote) was also in positive territory, rising 7.4% to $10.20.

Banks & Insurers

Bank of America(BAC Quote) was up 4.6% to $53.35, while Citigroup(C Quote) gained 7.3% to $39. American Express(AXP Quote) rose 7.4% to $27.51.

Insurer American International Group(AIG Quote) gained 5.9% to $71, and XL Capital(XL Quote) was up 9.7% to $68.03. ACE(ACE Quote) was up 16% to $23.76.

Basic Materials

The basic material stocks were generally up, with companies such as DuPont(DD Quote), up 7.1% and paper products company Westvaco(W Quote), up 6.6%. Georgia-Pacific(GP Quote) rose 6.4% to $28.30, and Allegheny Technologies(ATI Quote) gained 4.5% to $13.79.

Retailers

Retailers were generally up on Monday despite some analyst downgrades and concerns about consumer confidence. Retailers Wal-Mart(WMT Quote) rose 5.9% to $47.28, while Kmart(KM Quote) was up 6%. Home Depot(HD Quote) jumped 8.8% to $36.01.

Apparel retailer Gap(GPS Quote) was up 9.1% to $12.46, and Federated Department Stores(FD Quote) was up 4.9%. Sears(S Quote) rose 9.4%, and online retailer Amazon.com(AMZN Quote) posted a loss of 0.3%. Bookseller Barnes & Noble(BKS Quote) was up 8.6% to $36.45.

Media Stocks

Media stocks were trending higher as well. AOL Time Warner(AOL Quote) was up 8.9% to $32.50, while newspaper publisher Tribune(TRB Quote) climbed 2.1%. Knight Ridder(KRI Quote) was up 4.3%, and Gannett(GCI Quote) gained 2.6%.