Tech Stocks Drive Nasdaq To Record Close

Bellwether technology shares drove the Nasdaq market to its first new high in four months Monday, but with most stock measures already trading at record levels, the broad market posted a mixed performance.

The Dow Jones industrial average slipped 3.74 to 8,410.20 despite a big gain from Merck, with oil-related shares sliding sharply as the tentative U.N. truce with Iraq sent oil prices falling from already depressed levels.

Broader stock measures rose modestly, but enough for the Standard & Poor’s 500 index to set a record high for the 10th time in 15 sessions.

The Nasdaq composite index, dominated by a technology group that suffered the heaviest damage in late October’s selloff, posted the biggest gain to catch up with Wall Street’s recovery.

Despite the small decline in the Dow and the marginal buying outside the technology group, analysts remained encouraged by the market’s resilience.

“It’s as simple as the market digesting the phenomenal gains it’s had from January to present. The market’s doing a great job. They can barely sell it off,” said Ralph Bloch, chief market analyst at Raymond James & Associates.

Some of the stocks that moved substantially or traded heavily Monday:

NYSE

Merck, up 5-15/16 at 130-5/8.

The Food and Drug Administration cleared the drug maker to begin selling its Singulair asthma drug next month. Singulair is one of a new class of oral asthma drugs that targets the causes of the disease, rather than symptoms.

Magna Group, up 10-9/16 at 57-1/2.

Union Planters, a bank with operations in eight states, is acquiring St. Louis-based Magna for stock valued at about $2.3 billion, or $60 a share. The deal to buy Magna, Missouri’s third-largest bank, was announced late Sunday.

NASDAQ

Microsoft, up 4 at 81-5/8.

The software maker’s shares rose sharply on the first day of trading after a 2-for-1 stock split.

Trusted Information Systems, up 6-11/16 at 19-5/16.

In a merger of two computer-security providers, Network Associates agreed to acquire Trusted for stock worth $20 a share, or $300 million. Network Associates is to swap 0.323 share of stock for each share of Trusted.

CompScript, up 17/32 at 4.

Omnicare agreed to acquire the provider of pharmacy management and infusion therapy services for stock worth $4.50 a share, or about $63.3 million. Omnicare, a provider of pharmacy-related services, would also assume $7.5 million in debt.

DoubleClick, up 3-1/4 at 30.

The stock rose sharply for a second straight session after the Internet-advertising concern sold 3.5 million common shares for $59.5 million, or $17 each, in an initial public offering.