Dow Gains 5.53 While Investors Wait

Stocks rose modestly on Monday with investors encouraged by a rebound in the dollar and lower interest rates, but trading was light ahead of two key readings on the economy.

Technology stocks were among the day’s best performers, lifting the Nasdaq Stock Market amid optimism about first-quarter corporate earnings reports.

The Dow Jones industrial average rose 5.53 to 4,198.15.

Advancing issues narrowly outnumbered declines on the New York Stock Exchange.

Volume on the floor of the Big Board came to a relatively light 260.98 million shares as of 4 p.m., vs. 314.48 million in the previous session.

The dollar’s stronger performance in New York helped diminish concerns about the currency’s weakness and its possible effects on inflation. A weak dollar makes imports more expensive and can encourage domestic producers to raise prices.

Inflation also can bring higher interest rates as bond prices move higher. That can make stocks less attractive relative to interest-bearing investments.

Stocks ended mostly lower abroad. In Tokyo, the 225-issue Nikkei Stock Average rose 2.8 percent, while in London, the Financial Times-Stock Exchange 100-share index lost 0.2 percent.

Some of the stocks that moved substantially or traded heavily:

NYSE

Telefonos de Mexico, down 1 3/8 to 29.

The stock led the NYSE mostactive list after a block of shares equal to 0.1 percent of the company’s outstanding stock was traded.

Clark Equipment, up 1 3/8 to 85 1/2.

Heavy equipment manufacturer Ingersoll-Rand Co. says it has reached agreement to buy competitor Clark Equipment with a sweetened $1.5 billion offer. The cash deal announced Sunday comes to $86 a share for the 17.4 million common shares of Clark outstanding.

NASDAQ

Intel Corp., up 1 3/8 to 88 1/2.

Smaller capitalization stocks performed well. The March book-to-bill ratio, a key reading for the semiconductor industry, is expected to be even with or above the February level. That was considered a sign the industry remains strong. Motorola rose 1/4 to 55 7/8 on the NYSE.

AMEX

ALC Communications, up 3 to 36 1/4.

Frontier Corp. agreed to buy ALC for $1.8 billion in stock. The merger will create the fifth-largest long distance telephone company in the United States, with revenues of nearly $2 billion a year, Frontier said. Frontier lost 3 to 19 3/4 on the NYSE.