BEA Systems Leaps on Deal With PeopleSoft

Updated from 8:49 a.m. EDT.

BEA Systems

(BEAS)

was up 6.5% in midmorning trading after it announced a deal with

PeopleSoft

(PSFT)

to combine technologies.

The companies said BEA's WebLogic software will be embedded in PeopleSoft's business software package. The move continues a long-standing relationship between the two companies.

Other software stocks were also rising preopen. CheckPoint (CHKP) - Get Report was up 5.9% and Oracle (ORCL) - Get Report was up 5%.

This morning, ABN Amro came out with a report saying it saw downside risk for much of the software sector, but said the current weakness in the share price makes the stock attractive for long-term investors.