NEW YORK (CNN/Money) -
Technology stocks rose for the fifth straight session Monday, boosted again by chipmakers, while Siebel Systems and Hutchinson Technology soared on positive quarterly earnings forecasts.
The Nasdaq composite index gained 10.20 points or 0.5 percent to close at 1,952.40, while the Philadelphia Semiconductor index gained 3.1 points to close at 405.01.
Chip stocks performed well, with First Albany the latest brokerage to turn more optimistic on the sector. First Albany said semiconductor companies will outperform the market through the end of 2004, since fourth-quarter expectations are very low.
Semiconductor bellwether and tech blue-chip Intel Corp. (INTC: Research, Estimates) rose 1.3 percent to close at $21.13, while rival National Semiconductor (NSM: Research, Estimates) added 2.6 percent to close at $16.75. National Semiconductor announced Friday it will start paying a quarterly dividend.
Advanced Micro Devices (AMD: Research, Estimates) gained 2 percent to $13.70, and Texas Instruments (TXN: Research, Estimates) advanced 1.7 percent to $23.04.
Tech blue chips also rose, with AT&T (T: Research, Estimates) jumping 4.2 percent to close at $14.97 on expectations that the third-largest U.S. telephone company will boost earnings by slashing its workforce and cutting costs.
IBM (IBM: Research, Estimates) edged higher 0.5 percent to $87.16, and Motorola (MOT: Research, Estimates) gained 1.3 percent to $19.01.
In corporate news, PeopleSoft (PSFT: Research, Estimates) said third-quarter revenue would beat Wall Street estimates, while its profit would meet or come in slightly below views. Shares fell nearly 2.8 percent, to $22.20, with a downgrade from First Albany also weighing on the stock.
Late Monday, the software company made the headlines again when a board member testified that former Chief Executive Craig Conway was fired, because his statement that Oracle's offer didn't affect business misled analysts.
PeopleSoft board member Steven Goldby was testifying on the first trial day in a lawsuit that Oracle brought against the company. Oracle's purpose in bringing the suit is to eliminate a PeopleSoft "poison pill" provision that could grant large rebates to customers in the event the company is sold.
Oracle (ORCL: Research, Estimates) shares edged lower 0.3 percent.
Microsoft (MSFT: Research, Estimates) shares lost nearly 0.5 percent to close at $28.12 after Chief Executive Steve Ballmer told the Financial Times that the world's No. 1 software maker isn't interested in a bid for PeopleSoft. Ballmer added that while German software maker SAP AG was not on the radar screen, "one should never say never."
SAP (SAP: Research, Estimates) shares rose 0.7 percent to $40.63.
In the software sector, Siebel Systems (SEBL: Research, Estimates) soared 14 percent to close at $9.34 after the business software maker said its third-quarter revenue and earnings will top analyst forecasts. Hutchinson Technology (HTCH: Research, Estimates) rose 16.3 percent to $32.64 after it lifted its fourth-quarter earnings and revenue targets, citing an increase in demand for computer disc drive-making gear.
Shares of SunGard Data Systems (SDS: Research, Estimates) rose 10.6 percent to close at $27 after the company said it would spin off its data recovery business.
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