Tech stocks rally, but Dow off

The Santa Claus rally continued Monday for technology stocks, but it didn't carry over to the Big Board as the NASDAQ rose 17.65 points to 1651.55 while the Dow slid 38.29 points to 8110.84.

CMG Information Services Inc. enjoyed one of the biggest gains, surging $4.50 per share to $28.38 after Intel Corp. agreed to purchase a 4.9-percent stake in the Internet integrator. Lycos Inc., which is partly owned by CMG, also picked up some momentum, closing up $1.38 per share to $33.63.

PC stocks rallied after Compaq Computer Corp. CFO Earl Mason said worldwide demand for computers remains strong as the fourth quarter comes to a close.

Compaq shares rose 75 cents to $65.50 while Gateway 2000 Inc. and Dell Computer Corp. gained $2.88 and $2.25 per share, respectively.

Ascend Communications Inc. picked up 69 cents per share to $29.63 during another day of high volume despite analysts' concerns that Lucent Technologies Inc. might not be able to absorb the networking company. The takeover rumors have helped both stocks as Lucent closed up another 94 cents per share to $82.

Broderbund Software Inc., which will announce first-quarter results next week, picked up $2.88 per share to $33.88 as analysts are expecting record sales and revenue based on tremendous early sales of its Riven: The Sequel to Myst adventure game.