NEW YORK (CNNfn) - Eight long months into a new year, the Nasdaq composite index nudged into positive territory for 2000 Monday as investors returned to many of the fast-growing, large technology companies that powered the bull market of 1999.
Intel, Oracle and Sun Microsystems, all expected to boost profits by more than 30 percent this year, climbed in light, summertime trading volume, pushing the Nasdaq up nearly 28 points, or 0.69 percent.
The gains, which come amid steadying interest rates, are part of a quiet trend: the Nasdaq has advanced incrementally nearly every day in August.
"Strong corporate earnings and low interest rates," said Brian Finnerty, head of Nasdaq trading at C.E. Unterberg Towbin, when asked about the day's action. "Everybody wants to own these (technology) stocks because the earnings growth is so strong."
 Still, the session's gains also show what a difference a year makes. At this point in 1999, the Nasdaq was up 26 percent year-to-date.
Back then, the Federal Reserve had just begun a campaign of raising interest rates. Monday's advance comes on the emerging belief that the Federal Reserve, which held borrowing costs steady last week, may not tighten credit for the rest of the year.
"The Fed itself seems content to wait at least until after the elections if the not to the end of the year on raising rates," Elizabeth Mackay, chief investment strategist at Bear Stearns, told CNN's Street Sweep.
Technology stocks also lifted the Dow Jones industrial average Monday. The biggest winner, IBM, surged after a brokerage raised its price target on the computer maker. Gains in financial stocks, ever sensitive to tighter credit, also supported the Dow.
The Nasdaq advanced 27.91 points to 4,070.59, just above the 4,069.31 level where it began 2000. It's been a wild ride between then and now. The index soared above 5,000 in March only to fall below 3,200 in May. It has ground higher ever since.
 The Dow, meanwhile, rose 60.21 to 11,285.39, and the S&P 500 advanced 7.63 to 1,514.09.
Explaining the gains, Alan Skrainka, chief market analyst at Edward Jones, said he is heartened by the economy's strength and the buoyancy of corporate earnings amid an environment of low inflation.
"I am encouraged by the fundamentals," Skrainka told CNNfn's Market Coverage.
Market breadth was mixed. Declining issues on the New York Stock Exchange outpaced advancing ones 1,437 to 1,372 on trading volume of 723 million shares. That's the third lightest trading day of the year. Nasdaq winners topped losers 1,955 to 1,840 as more than 1.3 billion shares changed hands.
Linda Jay, NYSE floor trader for RPM Specialists, told CNNfn's Market Call that despite the late summer slowdown, the tone on the exchanges is positive. (435K WAV) (435K AIFF)
In other markets, Treasury securities fell. The dollar rose against the euro but slipped versus the yen.
Techs regain leadership
After selling off sharply this spring, the Nasdaq composite is up more than 27 percent since Memorial Day. On Monday, investors continued moving into technology stocks, snapping up many of the issues that fueled the bull market of last year.
Intel (INTC: Research, Estimates) gained 15/16 to 73-7/8, Oracle (ORCL: Research, Estimates) soared 2-1/8 to 86-3/4, and Sun Microsystems (SUNW: Research, Estimates) rose 3-1/16 to 127-13/16.
"The earnings among technology companies this year will be up something like 30 percent," said Donald Selkin, chief investment strategist at Joseph Gunner. "And remember, that's compared to a strong 1999."
 Among Nasdaq's major movers, only Yahoo! fell. Shares of the Internet portal tumbled 8-1/2 to 125-3/4 after Lehman Brothers said that if revenue for the quarter is light or low in quality the stock will "suffer meaningfully."
Lifting the Dow, International Business Machines (IBM: Research, Estimates) rose 1-9/16 to 130-9/16 after Credit Suisse First Boston raised its 12-month price target to $150 from $125.
Among other Dow winners, American Express (AXP: Research, Estimates) gained 3-3/8 to 59-15/16 and J.P. Morgan (JPM: Research, Estimates) rose 1-1/8 to 145-1/8.
Several deals crossed the wires Monday. In the largest, Powertel (PTEL: Research, Estimates), fell 5-9/16 to 81-1/16 after Deutsche Telekom AG agreed late Sunday to purchase the fast-growing mobile operator for $5.9 billion.
In addition, Applied Micro Circuits (AMCC: Research, Estimates) said Sunday it will buy MMC Networks (MMCN: Research, Estimates) in a $4.5 billion stock deal. Chipmaker Applied Micro's stock tumbled 4-3/4 to 183-13/16 while MMC, which designs processors that operate the switches and routers, surged 31-3/4 to 110.
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Emulex (EMLX: Research, Estimates) fell 6-1/4 to 99-1/2. The losses came one trading session after a bogus press release sent shares of the electronic components maker tumbling. The stock recovered most of its losses Friday when the hoax was revealed.
Meanwhile, a new pricing era officially began on Wall Street when the NYSE quoted seven issues in decimals instead of fractions.
Among the better known of the seven, FedEx (FDX: Research, Estimates) fell 48 cents to $40.77 and Gateway (GTW: Research, Estimates) advanced 36 cents to $66.55. All NYSE and Nasdaq stocks will convert from fractions next year.
Savings rate dips
In economic indicators, Americans' personal income rose 0.3 percent in July while spending gained 0.6 percent, the government said. The figures mean that the savings rate, which measures the percentage of income that Americans leave in the bank, fell to a negative 0.2 percent in July -- the lowest since the Commerce Department began calculating the number in 1959.
 The days ahead bring a slew of economic indicators. But with many analysts convinced that the Federal Reserve won't tinker with interest rates in October, the data could take on less importance. With the election season entering the final months, the central bank is not expected to change borrowing costs at its next meeting to avoid the perception of influencing the White House race.
Despite the day's stock gains, analysts expect another week of light trading in the final days of August. While stocks have chugged higher in recent weeks, the market has shown little consistent leadership as investors rotate between various sectors.
"I don't think it signifies very much," said Alan Ackerman, senior vice president at Fahnestock & Co., when asked about the day's action earlier in the session. "We're still in a position of extreme rotation in the markets." 
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