TECH STOCKS: Microsoft, Pandora Lead Techs 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 in the prior day's session.

Microsoft (MSFT) edged up by 29 cents a share to $46.54 a 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.

Online radio leader Pandora (P) was up by $1.30 a share, or 5%, at $27.24. Analyst Doug Anmuth, of J.P. Morgan, reiterated his overweight rating and $42-a-share price target on Pandora's stock, saying he expects the company will see stronger advertising revenue through the rest of the year. Pandora's listener hours are 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 1.8% to $99.81 a share. Reports from a Chinese newspaper said 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 3 points to 4,522 and the Philadelphia Semiconductor Index (SOX) rose almost 1%.

(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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