While shares of major computer makers rose sharply, the broader stock market held to modest gains, with investors making few bets while they awaited a government consumer price report.
The Dow Jones industrial average rose 73.14 to close at 11,046.79, its first close above 11,000 since July 21.
Broader indicators ended slightly higher. The Standard & Poor's 500-stock index rose 3.09 points, to 1330.77, while the Nasdaq composite index climbed 7.47 points, to 2645.28.
In a quiet session befitting a summer Monday, prices remained in a narrow range. Much of the Dow's strength came from Hewlett Packard, which rose 4 1/4, to 110 1/4, in advance of its earnings report for the fiscal third quarter.
Analysts surveyed by First Call/Thomson Financial had expected Hewlett Packard to earn 80 cents per share, compared with 58 cents per share a year ago. After the close of trading, the company exceeded estimates, with operating earnings of 85 cents per share.
IBM, another Dow component, rose 4, to 127 3/8. Larry Rice, chief investment officer at Josephthal & Co. in New York, said those stocks provided the most consistent leadership as most investors wait to see whether Federal Reserve policymakers will vote to raise interest rates later this month in an effort to hold off inflation.
The prospect of higher interest rates has pressured stocks in recent weeks, as investors fear corporate profits would be hurt by higher borrowing costs. A major relief rally hit the market Friday, with the Dow gaining 184.26 points after the report of a moderate rise in the producer price index.
That suggested to many analysts that inflation has not entered the economy and the Fed may raise rates just a quarter of a percentage point.
On Tuesday, the Commerce Department will release its consumer price index, another widely watched gauge of inflation that could determine the Fed's course of action at its Aug. 24 meeting. Some analysts said investors appear reluctant to make major new commitments until then.
While few new merger deals hit the market today, Alcoa's bid to acquire Reynolds Metals continued to attract attention. Reynolds Metals slipped 7/16, to 68-15/16, as the company insisted Alcoa's efforts to acquire it are not in the best interests of shareholders. Reynolds rejected a $5.6 billion offer from Alcoa last week and has been weighing a bid from investment firm Michigan Avenue Partners. Alcoa gained 3/8, to 66 7/8.
Nielsen Media Research, the provider of TV ratings in the United States, rose 4 1/2, to 37-5/16, after agreeing to be acquired by Dutch publisher VNU for $2.7 billion.