TECH STOCKS: Microsoft, Pandora Lead Tech Higher

By Rex Crum, MarketWatch

SAN FRANCISCO (MarketWatch) -- Tech stocks were mostly higher Tuesday, with Microsoft Corp. and Pandora Media Inc. among the gainers as the sector tried to stage a comeback after recording big losses during Monday's trading.

On Tuesday, Microsoft (MSFT) edged up by 52 cents a share to close at $46.76 day after the software giant said it would acquire Mojang, the developer of the popular "Minecraft" game franchise, for $2.5 billion. Analysts said the deal was a play to attract more users to mobile devices based on Microsoft's Windows operating system.

Digital radio leader Pandora (P) cilmbed $1.65 a share, or 6.4%, to close at $27.57. Analyst Doug Anmuth, of J.P. Morgan, reiterated his overweight rating and $42-a-share price target on Pandora's stock. Anmuth forecast stronger advertising revenue through the rest of the year, with Pandora's listener hours at near all-time highs.

Gains also came from eBay Inc. (EBAY), Facebook Inc. (FB), Google Inc. (GOOGL) and Amazon.com Inc. (AMZN)

Apple (AAPL), however, remained a drag on the sector, falling almost 1% to close at $100.86 a share. The problem: a Chinese newspaper reports Apple hasn't finalized agreements that would allow the iPhone 6 to be sold in China before the end of the year.

The tech-heavy Nasdaq Composite Index (RIXF) rose almost 34 points to 4,552 and the Philadelphia Semiconductor Index (SOX) closed with a gain of 1.7%.

(Read more about the day's other market action in Movers & Shakers http://www.marketwatch.com/story/adobe-factset-earnings-in-spotlight-2014-09-16.).

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