By Benjamin Pimentel
The tech sector rallied Monday, as Cisco Systems Inc. posted
strong gains after Barclays Capital upgraded the networking giant
to overweight.
Cisco (CSCO) shares jumped 4.4% 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 3% after the chip
tools maker was upgraded to buy by Citigroup.
Meanwhile, shares of Affiliated Computer Systems (ACS) soared
14% after Xerox Corp. (XRX) announced a plan to buy the
information-technology services company for $6.4 billion.
Shares of Xerox plunged 14.4%.
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 2,131,
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 3.6%.