NEW YORK - US technology stocks rose on Monday after software maker Oracle Corp. and online auction house eBay Inc announced multibillion-dollar acquisitions, boosting investor enthusiasm for the sector.
Software maker Siebel Systems Inc. surged 12.8 per cent to US$10.30 after its rival, Oracle, said it would buy the company
in a deal that values Siebel at US$5.85 billion. Oracle was up 1.4 per cent at US$13.46.
The Dow Jones industrial average was up 5.42 points, or 0.05 per cent, at 10,683.98. The Standard & Poor's 500 Index was down 0.55 point, or 0.04 per cent, at 1,240.93. The technology-laced Nasdaq Composite Index was up 6.92 points, or 0.32 per cent, at 2,182.43.
EBay agreed to acquire internet phone company Skype in a deal worth up to US$4.1 billion. Shares of eBay rose 1.1 per cent to US$39.05.
Shares of Google Inc. and Yahoo Inc., which run their own internet phone services, also piled on gains. Google shares climbed 3.4 per cent to US$309.38 and Yahoo rose 1.6 per cent to US$34.01.
"The thing about the acquisitions is it shows companies are looking and seeing value in the marketplace, and that spurs investors' interest," said Arnie Owen, managing director at Merriman Curhan Ford & Co. in San Francisco.
Crude oil prices fell, giving a lift to shares of industrials, which are big consumers of fuel. Diversified manufacturer 3M Co. rose 1.2 per cent to US$74.42.
But shares of oil company Exxon Mobil Corp. fell 1 per cent to US$62.60 on lower oil prices as oil slipped 68 cents to US$63.40 a barrel. The American Stock Exchange index of energy companies slipped 1.8 per cent.
Commerce Bancorp Inc. fell 7.8 per cent to US$31.14 after New Jersey's biggest bank said it expects second-half profit to fall short of analysts' forecasts, citing the impact of rising short-term interest rates.
Delta Air Lines Inc.'s shares fell more than 16 per cent to 92 cents on widespread market speculation that the troubled No. 3 US airline was close to filing for Chapter 11 bankruptcy protection.
Electronic Arts Inc. rose 5.6 per cent to US$59.27 after Wedbush Morgan Securities raised the video game maker's investment rating to "buy" from "hold."
- REUTERS
