Updated from 4:04 p.m. EST

Investors overcame a stubbornly weak dollar to push stocks higher Monday, but volume was light and investors were distracted by the

Oracle

(ORCL) - Get Report

-

PeopleSoft

(PSFT)

drama.

The

Dow Jones Industrial Average

closed up 32.51 points, or 0.3% to 10,489.42; the

S&P 500

rose 6.9 points, or 0.6%, to 1177.24; and the

Nasdaq

added 14.56 points, or 0.7%, to 2085.19. All of the major indices had spent most of the session in the red after posting big losses Friday.

Volume slowed a bit from Friday's trading. About 1.39 billion shares turned over on the

NYSE

, where advancers outpaced decliners by 2-to-1. On the Nasdaq, more than 1.90 billion shares changed hands, with advancers leading by a ratio of 3-to-2.

In other markets, the 10-year Treasury note rose 9/32 in price to yield 4.17%, while the dollar fell against the yen and euro. Oil futures, after spiking early, fell 25 cents to $48.64 a barrel.

Arthur Hogan, chief market analyst with Jefferies, said the midafternoon turnaround reflected "a little bit of relief on the oil front."

"People were afraid prices would go above $50," Hogan said. "We saw some buying."

Currency traders sold dollars after finance ministers of the Group of 20 nations made no mention of the currency's slide in Sunday's closing statement of a meeting in Germany. The dollar is currently near a four-and-a-half-year low against the yen and near an all-time nadir vs. the euro.

"We're in a very cautious mood here," said Peter Cardillo, chief market analyst with S.W. Bach & Co. "This is an abbreviated week for stocks until we get some economic news that could perhaps divert some of the market's worries. The falling dollar and oil prices will dominate trading."

Among stocks, the fate of PeopleSoft could rest with the courts this week after a majority of the company's shareholders tendered a $9 billion takeover offer from Oracle ahead of a Friday night deadline. The 18-month-old offer continues to be opposed by PeopleSoft's board, which has deemed the $24-a-share takeout price as too low.

Oracle described the situation as an "impasse" in a letter yesterday and is now waiting for a Delaware court to rule on PeopleSoft's "poison pill" antitakeover defense. On Monday, Oracle demanded that PeopleSoft's board immediately redeem its antitakeover plan to allow stockholders to sell their shares to Oracle. Oracle shares were down 7 cents, or 0.5%, to $12.68. Meanwhile, PeopleSoft were up 19 cents, or 0.8%, to 23.36.

Krispy Kreme

(KKD)

reported a third-quarter loss of $3 million, or 5 cents a share, compared with a year-ago profit of $14.5 million, or 23 cents a share. The doughnut maker lost 4 cents a share before items, compared with analyst forecasts for earnings of 13 cents. Krispy Kreme withdrew sales guidance for the rest of the year and said it formed a special committee of the board to respond to issues raised in an

SEC

probe. Krispy Kreme shares fell $1.86, or 16.2%, to $9.64.

Apple

(AAPL) - Get Report

rose after Piper Jaffray set a $100 price target on the stock on the strength of optimistic research about the potential market for iPods. The brokerage said sales of the personal audio devices could spur sales of Apple's computers, justifying a richer-than-average premium for the shares. Apple was up $6.18, or 11.2%, to $61.35.

Mylan Laboratories

(MYL) - Get Report

once again rejected a $20-a-share takeover offer from billionaire investor Carl Icahn and reiterated that it wil1 go ahead with its acquisition of

King Pharmaceuticals

( KG). Mylan was down 23 cents, or 1.2%, to $18.65.

Toys R Us

( TOY) shares rose 37 cents, or 1.9%, to $19.73 after it said its third-quarter loss narrowed as it trimmed costs amid declining sales. The toy retailer said it lost $25 million, or 12 cents per share, compared with a loss of $46 million, or 22 cents a share, in the same period a year ago. The company still needs to decide how to separate the toy business from the Babies R Us division, which is expected to be sold in the first half of 2005.

Shopping.com

(SHOP) - Get Report

on Monday said it expects fourth-quarter revenue of $33.5 million to $33.8 million, up 33% from a year ago. The company also expects earnings before interest, taxes, depreciation and amortization of $8.8 million to $9 million. Shares were up $1.56, or 6.1%, to $27.36.

Shares of

Sirius Satellite

(SIRI) - Get Report

continued to swing, tacking on another 15.9% Friday following last week's big runup. The stock was up 82 cents to $5.99 on about 150 million shares traded. Rival

XM Satellite

( XMSR) fell 22 cents, or 0.6%, to $34.79.

Overseas markets were mostly lower, with London's FTSE 100 down 0.5% to 4733 and Germany's Xetra DAX down 0.2% to 4123. In Asia, Japan's Nikkei fell 2.1% overnight to 10,849, while Hong Kong's Hang Seng rose 0.1% to 13,801.