Palm

(PALM)

rose 3.5% in early trade after announcing it would team with

Motorola

(MOT)

to build a line of "smart phones." Motorola rose 1%. Palm's announcement came as rival

Handspring

TheStreet Recommends

(HAND)

said a cell-phone attachment for its hand-held computer would be available starting in November. Handspring, which rose last week in anticipation of the announcement, was up 0.4%. Other cell phone companies were also higher.

Ericsson

(ERICY)

rose 1.4% and

Nokia

(NOK) - Get Report

gained 1%.