NEW YORK (CNN/Money) - Investors went on a wireless shopping spree Tuesday thanks to news that Cingular Wireless will acquire AT&T Wireless for $41 billion.

According to preliminary reports, the Nasdaq composite edged 26.79 higher to 2080.35. The Philadelphia semiconductor index rose 8.48 to 519.05 and the Amex technology index added 7.49 to 732.51.

Cingular Wireless edged out its British rival Vodafone in a bidding war for AT&T Wireless, the nation's No. 3 wireless provider, with a $41 billion bid.

Cingular, currently the nation's No. 2 cellular service provider, is paying about a 27 percent premium to shareholders of AT&T Wireless. Vodafone, which had recently raised its offer to $38 billion, dropped out of the bidding Tuesday.

The news sent AT&T Wireless (AWE: Research, Estimates) up 16.6 percent to $13.78 on the New York Stock Exchange, where the stock topped the most active list.

But shares of BellSouth (BLS: Research, Estimates) and SBC Communications (SBC: Research, Estimates), which jointly own Cingular Wireless, fell in response to the deal. BellSouth ended 1.67 percent lower to $29.06 while SBC shares fell by less than a percent to $24.84. Both trade on the NYSE.

Also on the NYSE, Vodafone (VOD: Research, Estimates) rose 3.5 percent to $26.67.

Other mobile phone network operators rallied after the deal, with Nextel Communications (NXTL: Research, Estimates) gaining more than 6 percent to $28.77 and Sprint PCS (PCS: Research, Estimates) rising nearly 8 percent to $9.95. Both are traded on the NYSE.

Comcast Corp. has decided, for now, to back off its proposed acquisition of entertainment titan Walt Disney Co., sources told CNN/Money.com.

But the source also said that Comcast's offer is not being withdrawn, nor is Comcast dropping its interest in a merger with Disney in the future.

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Shares of Disney (DIS: Research, Estimates) edged marginally lower to $26.90 after the board rejected Comcast's offer, while shares of Comcast (CMCSA: Research, Estimates) packed on 2.8 percent to $30.75.

Optimal Robotics Corp. said Monday that NCR Corp., a computer services firm, has agreed to buy its self-checkout business for $30 million.

NCR said the acquisition of the business, which allows shoppers to scan, bag and pay for their purchases with limited or no assistance, will increase 2004 earnings "slightly" assuming the deal closes as expected early in the second quarter.

Optimal's (OPMR: Research, Estimates) stock dropped 14.5 percent to $7.48 on the Nasdaq while NCR (NCR: Research, Estimates) shares pulled back slightly to $45.54 on the NYSE.  

--from staff and wire reports