SAN FRANCISCO - Tech stocks outperformed blue chips Monday, with the
roaring ahead more than 60 points while the
Dow Jones Industrial Average
"Everything sold off
last week because PC stocks fell apart, but we got some good news last week with the
deal and then some good economic news," said one buy-side analyst.
Thursday, Dell and IBM entered a $16 billion purchasing agreement.
"I guess people have decided the world isn't going to fall apart after all," the analyst said.
Nasdaq began the day with a boost from chipmaker
, which announced an agreement had been reached with the
Federal Trade Commission
to settle the antitrust case that was due to start Tuesday.
"There's been a cloud lifted over Intel and the tech sector," said the buy-side analyst who is still generally bullish on tech stocks.
Good News and Bad News
Two chip companies are headed in different directions.
got an upgrade from
Morgan Stanley Dean Witter
analyst Mark Edelstone.
Edelstone, whose firm has underwritten for the communications chipmaker, notes in a research report that "Because of Broadcom's ability to bring its highly integrated physical-layer products to market ahead of the competition, we believe that the company has experienced strong demand from the networking sector."
Broadcom ended the day up 23%, or 12 3/8, at 66 1/2.
Meanwhile, after the market close,
Advanced Micro Devices
said it sees a "significant loss" in the first quarter, and expects to cut 300 jobs over the next two quarters. The company said it shipped half a million fewer K6 chips than expected and cited lower yields for the shipment shortfall. AMD ended up at 18 15/16.
7thStreet.com in AOL, Geocities Pacts
Among the tech leaders was
(no relation to this publication or its parent company), which ended up 3 27/32, or about 77%, at 8 27/32. It gained after announcing a pact with both
7thStreet.com will help provide AOL users with tutorials and courses, while Geocities members will be able to sell 7thStreet.com tutorials and courses on their Web sites.
CNet, Network Solutions Splits
ended with a record high close as investors jumped in before the company's 2-for-1 stock split at the end of the day. Investors are hoping that the stock split will draw in more investors who will be able to afford to buy the shares.
Since CNet announced its intentions to split the stock on Feb. 10, the shares have more than doubled from 91 5/16. It ended up 40 1/8, or 24%, at 208 1/8.
jumped more than 22%, partly in anticipation of its 2-for-1 stock split. The split, announced on Jan. 4, is expected to take effect on March 23.