RealTime IT News

Qwest Change Leads Telecom Rally

After days of selling, a rally spread across many high-tech issues on Monday, especially those related to telecommunications. The day started with a resignation from Qwest CEO, Joseph Nacchio, and the news that he will be replaced by Richard Notebaert, head of Tellabs and the former CEO of Ameritech.

Qwest issues gained 20 percent, or 85 cents to close at $5. Network equipment manufacturers shared in the mood. Ciena closed up 13 percent, and Juniper Networks rose 7 percent while JDS Uniphase was up 7.3 percent to $2.95.

The rally extended to other high-tech issues, as well. The NASDAQ index gained 48.5 points or 3.2 percent to close at 1553.

Oracle built on Friday's gains, buoyed by speculation about a positive earnings report due Tuesday. It closed at 9.3, up 7.3 percent.

Its rivals also did well. Software maker Siebel Systems was up 6 percent to end the day at $15.70. And Microsoft gained 2 percent, or 94 cents share, to $56.20 after the company said it was expecting strong online advertising growth at its MSN division.