Aided by reports of renewed talks with Microsoft ( MSFT), Yahoo! ( YHOO) shares rose 7% into the market close Monday, in contrast with an overall bad day for tech stocks.

On Friday, the AllThingsD blog and The Wall Street Journal reported that among proposals being bounced around by the two firms is a deal in which Yahoo! would sell both companies' display advertising and Microsoft would manage search advertising. Yahoo! shares rose 7.1% Monday to close at $14.42. Microsoft shares fell 0.4% to $19.59, in line with a blah day in the broader market that saw the Dow fall 0.3% and the Nasdaq rise 0.1%.

Elsewhere in Internet stocks:

Google ( GOOG) shares rose 1.5% to $5.61.

eBay ( EBAY) shares fell 2.6% to $14.63.

Amazon ( AMZN) fell 1% to $78.94.

Bidu ( BIDU) rose 4.8% to $199.48.

Sina ( SINA) rose 3.9% to $28.25.

Sohu ( SOHU) rose 3.9% to $50.