IBM paces technology issues as stock market climbs

Stocks rallied Monday as interest rates approached eight-week lows, sending the NASDAQ composite up 9.09 to 1689.45 and the Dow Jones Industrial Average up 63 points to 7980.87.

IBM led the way among technology issues, climbing $4.56 per share to $103.81 after announcing that it would manufacture the first semiconductors that use copper rather than aluminum beginning in 1998.

"It's really impressive and comes much earlier than anyone expected," said Dan Hutcheson, president of VLSI Research Inc., a San Jose, Calif., market-research firm. "They definitely have the jump on building more powerful semiconductors with this technology."

Internet-related stocks also faired well Monday as shares of Yahoo! Inc. rose $2.25 per share to $53.63. Fellow Internet search guides Excite Inc. and Lycos Inc. also benefited and rose $2.75 per share and $1.88 per share, respectively.

The impressive gains come on the heels of analysts' warnings that Internet stocks are growing at an unrealistic pace considering the relative immaturity of the market.

David Simons, director of Digital Video Investments, said investors' infatuation with Internet stocks is a "certifiable mania" and ignores the inherent risks of investing in unproven Internet companies that have yet to turn a profit.

PC makers Dell Computer Corp. and Compaq Computer Corp. continued their fabulous growth, closing up $2.06 per share and 75 cents per share, respectively.

Networking issues had mixed results Monday. 3Com Corp. posted the best day, up $2.56 to $50.38. Bay Networks Inc. slipped back 25 cents per share while Cisco Systems Inc. and Ascend Communications Inc. both rose $1.94 per share.

Among software developers, Microsoft Corp. dropped $1.88 per share and Oracle Corp. dipped 35 cents per share. Adobe Systems Inc. surged up $2.38 per share to $52.13.

Stocks rallied Monday as interest rates approached eight-week lows, sending the NASDAQ composite up 9.09 to 1689.45 and the Dow Jones Industrial Average up 63 points to 7980.87.

IBM led the way among technology issues, climbing $4.56 per share to $103.81 after announcing that it would manufacture the first semiconductors that use copper rather than aluminum beginning in 1998.

"It's really impressive and comes much earlier than anyone expected," said Dan Hutcheson, president of VLSI Research Inc., a San Jose, Calif., market-research firm. "They definitely have the jump on building more powerful semiconductors with this technology."

Internet-related stocks also faired well Monday as shares of Yahoo! Inc. rose $2.25 per share to $53.63. Fellow Internet search guides Excite Inc. and Lycos Inc. also benefited and rose $2.75 per share and $1.88 per share, respectively.

The impressive gains come on the heels of analysts' warnings that Internet stocks are growing at an unrealistic pace considering the relative immaturity of the market.

David Simons, director of Digital Video Investments, said investors' infatuation with Internet stocks is a "certifiable mania" and ignores the inherent risks of investing in unproven Internet companies that have yet to turn a profit.

PC makers Dell Computer Corp. and Compaq Computer Corp. continued their fabulous growth, closing up $2.06 per share and 75 cents per share, respectively.

Networking issues had mixed results Monday. 3Com Corp. posted the best day, up $2.56 to $50.38. Bay Networks Inc. slipped back 25 cents per share while Cisco Systems Inc. and Ascend Communications Inc. both rose $1.94 per share.

Among software developers, Microsoft Corp. dropped $1.88 per share and Oracle Corp. dipped 35 cents per share. Adobe Systems Inc. surged up $2.38 per share to $52.13.