TECH STOCKS: Micron, Microsoft Lead Techs Higher

By Benjamin Pimentel, MarketWatch

SAN FRANCISCO (MarketWatch) -- Technology stocks joined a broad market rally early Monday, propelled by rising shares of Microsoft Corp. and Micron Technology.

Microsoft (MSFT) was up 2% at $41.17, the best performer on the Dow Jones Industrial Average, (DJI) which was up 125 points.

Micron Technology (MU) was also up more than 6% at $23.36, the top gainer on the S&P 500(SPX), which was up 1%.

Shares of AT&T (T) were up 0.5%. The telecommunications company said Monday that its board of directors approved a new plan to repurchase 300 million shares of stock, or about 6% of its current shares outstanding.

On the downside, shares of BlackBerry Inc. (RIMM) shed 3%. The mobile technology company last week reported a narrower-than-expected loss, but posted sales that were below estimates. Credit Suisse on Monday downgraded the stock to underperform from neutral.

"We are concerned by the level of free cash flow burn and the ongoing pressure in services revenues and believe visibility on a turnaround is very low," Credit Suisse analyst Kulbinder Garcha told clients in a note.

The Nasdaq Composite Index (RIXF) rose 48 points, or nearly 1%, to 4,203. The Philadelphia Semiconductor Index (SOX) was up 1.5%, while the Morgan Stanley High Tech 35 Index (MSH) was up 1.5%.

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