NEW YORK (CNN/Money) -
Technology stocks finished higher on Monday after manufacturing data hinted that a turnaround in hiring may be on the horizon and boosted investors' expectations for Friday's crucial jobs report for February.
The technology-laced Nasdaq Composite Index climbed 27.98 points, or 1.4 percent, to 2,057.80.
The monthly manufacturing index from the Institute for Supply Management, known as ISM, showed that manufacturers are gaining enough confidence to hire workers. The employment index part of the survey rose to 56.3 in February -- the highest since 1987 -- from 52.9 in January.
In corporate action, shares of Sepracor Inc. (SEPR: Research, Estimates) soared more than 50 percent after the company said it received conditional U.S. approval for a new sleep drug, Estorra.
In clinical trials, Estorra kept patients asleep for five to seven hours without a hangover, compared with shorter durations for Ambien and Sonata, said Sepracor Chief Financial Officer David Southwell on Saturday.
Shares of Sepracor finished $15.99, or 56 percent, higher at $44.30 on the Nasdaq -- its highest point in about two years. The stock was one of Nasdaq's top percentage gainers.
The news brings a measure of vindication for Sepracor, the once a high-flying company that fell to earth after a series of clinical trial failures, becoming a symbol of Wall Street's disappointment with biotechnology companies and small drug developers. The sleep aid could make money-losing Sepracor a profitable company.
Both Steinberg and Morgan Stanley raised ratings on Sepracor after the announcement.
Intel (INTC: up $0.49 to $29.69, Research, Estimates) stock gained 49 cents to $29.69, while Advanced Micro Devices (AMD: Research, Estimates) fell 11 cents to $14.89. JP Morgan cut its rating on Intel because of indications that sales of laptop computers were slowing and lowered its rating on AMD because of price pressures, according to a market source.
Among other tech heavyweights, Microsoft (MSFT: up $0.17 to $26.70, Research, Estimates) finished 0.5 percent higher, and Oracle (ORCL: up $0.21 to $13.08, Research, Estimates) gained 1.6 percent.
Cisco Systems (CSCO: up $0.37 to $23.53, Research, Estimates) rose 1.6 percent higher while Sirius Radio (SIRI: up $0.06 to $3.00, Research, Estimates) gained 2 percent. These are some of the most actively traded stocks on Nasdaq.
International Business Machines (IBM: up $0.54 to $97.04, Research, Estimates) inched up slightly on the New York Stock Exchange.
In other tech-related news, Lightbridge, a transaction processing company, said Monday it agreed to buy online-payment processor Authorize.Net from InfoSpace Inc. for $82 million in cash in order to diversify its client base amid consolidation in telecommunications.
Shares of Lightbridge (LTBG: down $0.18 to $7.12, Research, Estimates) dipped on the news, while InfoSpace (INSP: up $0.85 to $37.20, Research, Estimates) gained more than 2 percent.
-- Reuters contributed to the story
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