By Benjamin Pimentel
The tech sector rally gained momentum Monday, as Cisco Systems
Inc. posted strong gains after Barclays Capital upgraded the
networking giant to overweight.
Cisco (CSCO) shares jumped more than 4% after analyst Jeff Kvaal
raised the company's rating, saying, "We expect improving carrier
demand, a better Europe, and continued U.S. momentum to drive
revenue upside."
Shares of Applied Materials (AMAT) also gained more than 3%
after the chip tools maker was upgraded to buy by Citigroup.
Meanwhile, shares of Affiliated Computer Systems (ACS) soared
more than 13% after Xerox Corp. (XRX) announced a plan to buy the
information-technology services company for $6.4 billion.
Shares of Xerox plunged more than 15%.
Overall, the sector advanced on gains from Cisco and other major
networking gear makers, including Juniper Networks (JNPR) and
Brocade Communications (BRCD).
The Nasdaq Composite Index (RIXF) added 1.9%, rising to 2,130,
while the Morgan Stanley High Tech 35 Index (MSH) and the
Philadelphia Semiconductor Index (SOX) each rose about 2%.
Other major tech players were in positive territory, including
Google Inc. (GOOG), Apple Inc. (AAPL) and Microsoft Corp.
(MSFT).
Meanwhile, Research In Motion (RIMM) was down about 3.2%.