By Benjamin Pimentel
The tech sector was off to a strong start Monday morning, as
Cisco Systems 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 US momentum to drive revenue
upside."
Meanwhile, shares of Affiliated Computer Systems (ACS) also
jumped more than 15%, 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 1.7% at 2,126, while the
Morgan Stanley High Tech 35 Index (MSH) and the Philadelphia
Semiconductor Index (SOX) each rose about 1.9%.
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 2%.