Updated from 2:22 p.m. EST with new stock prices
Tech stocks rallied Monday as the market indices turned positive with increased expectations for an interest rate cut.
rose 0.8% after the company said it has
bagged telecom giant AT&T as a customer for its network infrastructure products.
has chosen its carrier routing system, or CRS-1 equipment, to upgrade the telecom company's Internet backbone in 25 major cities. Cisco was up 21 cents to $27.66 while AT&T was down 65 cents, or 1.7%, to $37.82.
Shares of video-game publisher
rose 5.7% after an analyst from Pacific Crest Securities upgraded the stock to outperform from sector perform.
The latest upgrade is the second this month as analysts bet that the upcoming release of the latest game in the company's biggest franchise,
Grand Theft Auto
rose 3.1% after positive comments from two analysts.
An analyst from Lazard Capital said EA's sports division remains strong, while Bear Stearns highlighted the strong sales of the company's recent game,
. EA was up $1.69 to $55.74.
rose 2.4% after an analyst suggested that the company's continued top-line growth reflects market share gains.
Oracle sees an organic growth rate of approximately 8% to 10%, which allows for enough room to grow margins, said an analyst from Cowen & Co. Oracle was up 50 cents to $21.64.
fell 21.4% after CEO Patrick Byrne said the company's gross margins would be lower than in recent quarters due to aggressive sales promotions and discounting.
According to Byrne, fourth-quarter net income is expected to range between -1% and 1% of revenue, with the company generating about $50 to $60 million in operating cash flow.
But Byrne said gross bookings this quarter have increased by approximately 10% over last year's fourth quarter due to an increase in the order size of the average transaction. Overstock.com was off $5.10 to $18.74.
Open-source technology player,
, fell 2.8% after the stock was downgraded by a Wall Street firm.
Jeffries & Co. graded the stock down to hold from buy on the belief that Red Hat will be forced to look for other opportunies as virtualization gains strength and the need to run dedicated Linux servers will reduce. Red Hat was down 56 cents to $19.45.