After a turbulent session Friday, Wall Street reverted to a more serene summer mood today.

The

Dow Jones Industrial Average closed up 46.72 points, or 0.5%, to 10,299.40, while the

Nasdaq Composite finished higher by 22.6 points, or 1.1%, to 2026.7. The broader-market

S&P 500 ended ahead 8.19 points, or 0.7%, to 1198.78.

Trading volume was feather-light on both the

New York Stock Exchange and Nasdaq. "The market is in holiday mode again today," said Rob Cohen, co-head of listed trading at

Credit Suisse First Boston

, who made little of the market's bounce.

"The shorts are covering after last week's selloff," said Cohen. "Today's activity is not a catalyst: It's a one-day event related to the fact that people were out last week and they are nibbling at stocks today." In light trading on Friday, the Dow tumbled 227 points, while the Nasdaq fell 76 points as a result of profit warnings from the tech sector and disappointing data about the labor market.

"The market treaded water today, but it is still concerned about the economy," said Peter Coolidge, managing director of trading at

Brean Murray Foster Securities

. As for today's light trading, he noted: "There's no leadership, no reason to rush into stocks. The market would have to go up or down substantially for volume to increase substantially. At this level, there isn't a lot of enthusiasm."

Second-quarter earnings season, under way this week, should generate attention. The analyst community is hoping for signs that business is improving. However, some pros worry the reporting season will bring more bad news: Analysts, according to Thomson Financial/First Call, are already forecasting an 18% drop in quarterly earnings, more than twice the first quarter's 6.3% contraction.

But some research analysts' have pointed to light at the end of the tunnel. Bear Stearns' top-shelf tech analyst Andrew Neff this morning

upgraded data-storage concern

EMC

(EMC)

and server shop

Sun Microsystems

(SUNW) - Get Sunworks, Inc. Report

to buy from attractive, based on what he sees as signs of a bottoming or upturn in the domestic economy.

Shares of EMC rose 72 cents to $22.32, while Sun climbed $1.14 to $14.82. Last Thursday, EMC was one of several tech companies to issue a profit warning, driving Friday's selloff. The

Philadelphia Stock Exchange Computer Box Maker Index

TheStreet Recommends

rose 0.52% today.

Another Day, Another Warning

Communications-chip maker

Conexant

(CNXT) - Get VanEck Vectors ChinaAMC SME-ChiNext ETF Report

said it would miss analysts fiscal third-quarter earnings estimates. The company now expects a third-quarter pro forma loss of 45 cents before special one-time charges. Analysts were expecting a loss of 43 cents. The company also lowered its revenue guidance to $200 million from $206 million. The stock shrugged off the warning, however, gaining 74 cents to $8.09.

AT&T

(T) - Get AT&T Inc. Report

was the biggest gainer on the Dow, after cable provider

Comcast

(CMCSK)

made an unsolicited offer to buy the battered telco's cable business,

AT&T Broadband

. Comcast offered to pay $44.5 billion in stock and assume $13.5 billion in debt for AT&T's broadband unit. The acquisition would create the world's largest broadband provider.

AT&T said it has no plans to sell its broadband unit, but that it would review the offer. AT&T increased $1.98 to $18.70, while Comcast decreased $2.98 to $39.30.

The

Nasdaq Telecommunications Index

boosted 1.2%.

AT&T Wireless

(AWE)

closed off 39 cents to $16.56. It was

spun off today, a little more than a year after AT&T staged a $10.6 billion gut-buster initial public offering of the wireless tracking stock.

Among sectors, utilities and retailers edged higher, while chip and oil stocks moved lower. For the year, the major indices are pitted in negative territory. The Dow is down 4.5%, the Nasdaq is behind 18%, and the S&P 500 is lower by 9.2%.

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