Tech Stocks Pump Up The Dow

U.S. stocks made a strong showing Monday, propelled by gains in benchmark technology and Internet-related issues.

The Dow Jones Industrial Average advanced 54.33 points, or 0.6 percent, to 9,070.47.

The day's action occurred despite a lack of market-moving reports from the economic and earnings fronts.

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Internet stocks fared well in advance of a series of initial public offerings due later in the week. In a switch from last week's pattern, electronic commerce names outperformed Web portal issues.

"The Internets were up on the constant talk about the business that's being done there," said Barry Berman, managing director of equity trading at Robert W. Baird & Co.

Among Net-related stocks, shares of five companies rocketed.

• Thrustmaster (TMSR) exploded for a 134 percent gain, or 6 7/16 points, to 11 1/4. The maker of computer games came out with a new software package, Talk n' Play, that enables up to four people to talk over the Internet while simultaneously playing online computer games.
• EarthWeb (EWBX) vaulted 19, or 58 percent, to 52. J.P. Morgan began following the company with a "buy" recommendation and Bear Stearns initiated coverage with an "attractive" rating. Separately, EarthWeb said it lined up 45 new advertising clients. The company provides online services to information technology professionals.
• Navarre (NAVR) soared 5 1/2, or 70 percent, to 13 3/8. The distributor of prerecorded music and personal computer software said it will spin off its NetRadio unit in an initial public offering.
• Multiple Zones International (MZON) scored a 3 11/16-point gain, or 52 percent, to 10 13/16. It will launch FairMarket's Web auction service.
• Theglobe.com (TGLO) bounced up 12 7/16, or 45 percent, to 39 7/8. Volpe Brown began covering the stock with a "buy" rating. The company provides users with the ability to publish their own content and interact with others aving similar interests.
• Several electronic commerce names roses. Beyond.com tacked on 1 1/8 to 23 3/8, Digital River 2 5/8 to 23 1/8, N2K 2 1/16 to 15 3/16, Onsale 6 to 42 7/16, CDnow 2 15/16 to 19 7/8, Preview Travel 1 to 18, Cyberian Outpost 2 9/16 to 25 1/4, and Open Market 2 11/16 to 13. But eBay slid 8 1/4 to 174 1/4.

The Dow Jones Transportation Average gained 2.1 percent. FDX Corp. (FDX), took off 5 3/8 to 72 5/8, accounting for about one-fourth of the move. A favorable story in Barron's over the weekend profiled the parent of FedEx as a beneficiary of the growth in Internet commerce.

Meanwhile, the merger front was somewhat quiet in comparison to a series of recent "merger Mondays." A pair of hookups in the utility sector was the extent of the activity.

"The market's [recent] price pullback is still quite normal and will lead to another run into the end of the year," said Robert Dickey, managing director of technical research at Dain Rauscher Wessels, in a research brief. "The bigger risk today is being out of the market with the specter of one of those '10 best days of the year' looming ahead of us by year-end.

"It is very difficult for the market to make any kind of deep correction when the tech stocks are so strong," he said. "This week will see some more base-building above the 8800 support level on the Dow, prior to the Santa Claus rally."

In Monday's market indicators:

• The Standard & Poor's 500 Index rose 0.9 percent.
• New York Stock Exchange winners outran losers by 17 to 13. Fifty-two week highs totaled 105, while 42 stocks hit 52-week lows.
• On the Big Board floor, turnover receded 7 percent to 657 million shares.

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• The Nasdaq Composite advanced 1.9 percent to a record. Advancing issues trailed decliners by 92 shares in the Nasdaq Stock Market, with 93 new highs and 80 new lows. Volume totaled 799 million shares.
• The Russell 2000 Index of small-company stocks gained 0.7 percent.
• In the bond market, the 30-year Tresury advanced 5/32, to yield 5.032 percent.

Among the companies in the news:

• PacifiCorp (PPW) fell 3/16 to 20 9/16. British utility concern Scottish Power will buy the Oregon-based utility in a $7.83 billion transaction.
• BEC Energy (BSE) fell 1 to 41 and Commonwealth Energy System (CES) tacked on 2 1/16 to 39 7/8. The former will acquire the latter for $950 million in cash and stock.
• Oxford Health Plans (OXHP) moved ahead 3 3/16 to 14 7/8. Lehman Brothers, citing good membership renewal prospects and the stock's valuation, upped its opinion to "buy" from "neutral," issuing a $22-a-share price objective. And Donaldson, Lufkin & Jenrette raised its rating to "buy" from "market perform."
• uBid lost 5 3/4 to 42 1/4. Friday the stock jumped 33 points, or 220 percent, in its market debut. The Internet auctioneer sold 1.58 million shares at $15 apiece.
• My Software (MYSW) leaped 2 11/32, or 24 percent, to 12 1/8. The company hooked up with Experian and The Polk Co. in launching an electronic prospecting service to provide businesses with up to 125 million customer leads. My Software develops productivity software for small-business professionals.
• Littelfuse (LFUS) pulled back 5 1/8 to 19 7/8. The manufacturer of electronic, power, and automotive fuses sees fourth-quarter results coming in from 35 percent to 40 percent below the third period due to sluggish conditions in the North American and Japanese markets.
• Fusion Medical Technologies (FSON) added 1 15/16, or 28 percent, to 8 15/16. The developer of devices for controlling bleeding announced glowing preliminary results for its FloSeal sealant. A study of 300 patients showed that FloSeal stopped bleeding within 10 minutes in 96 percent of cases.
• Coulter Pharmaceutical (CLTR) lifted 1 to 32 3/8 after releasing positive Phase III trial results for its I-131 Anti-B1 Antibody drug to treat non-Hodgkin's lymphoma. In addition, the U.S. Food and Drug Administration designated the drug a Fast Track Product, enabling speedier development and review.
• Lucent Technologies was up 4 1/4 to 100 amid positive comments made by management.
• Other technology benchmarks rode higher. International Business Machines improved 2 15/16 to 167 3/16, Cisco Systems 1 15/16 to 80 3/16, Dell Computer 1 5/8 to 67 5/8, Ascend Communications 6 7/8 to 63 15/16, and Microsoft 6 3/16 to 133 9/16.
• Oil service stocks spurted on bargain hunting. On balance, the shares have lost about two-thirds of their value since April as the cost of oil has cascaded. Schlumberger appreciated 2 1/2 to 43 3/4, Halliburton 1 15/16 to 31 5/8, Baker Hughes 1 1/8 to 18 9/16, Diamond Offshore Drilling 2 9/16 to 24 7/8, and Transocean Offshore 3 1/8 to 27 3/4.