Optimism that the embattled technology sector was due for a recovery sent stocks modestly higher Monday.

Semiconductor manufacturer Broadcom said high inventories resulted in delayed shipments and reduced its revenue projections for the quarter. But investors were encouraged as the company said future quarters looked brighter. Broadcom surged $2.60, to $30.30.

"Tech acts like that. You couldn't have said a good thing about tech last week, and now we're seeing some buying," said Bryan Piskorowski, market analyst at Wachovia Securities. "Overall, I think the market's becoming comfortable with the economic slowdown over the summer. I think we see now that it's not something pervasive or something that's going to continue."

The Dow Jones industrial average gained 1.69, or 0.02 percent, to 10,314.76. The Standard & Poor's 500-stock index rose 1.90, or 0.2 percent, to 1125.82, and the Nasdaq composite index climbed 16.07, or 0.8 percent, to 1910.38.

Time Warner dropped its bid for Hollywood's last independent movie studio, Metro-Goldwyn-Mayer, shortly after rival Sony raised its own bid. MGM rose 44 cents, to $11.55, while Sony gained 53 cents, to $35.82, and Time Warner slipped 6 cents, to $16.45.

Campbell Soup saw fourth-quarter profit fall because of higher promotional costs and lower sales. The soup company missed Wall Street estimates by a penny. Campbell dropped 70 cents, to $25.50.

E.W. Scripps fell 22 cents, to $51.22, after it reiterated its earnings outlook of 35 cents to 39 cents per share for the current quarter. However, the media company said it was still assessing hurricane damage at newspapers and a television station in Florida, and may be forced to take one-time charges.

Other Indicators

* The New York Stock Exchange composite index rose 13.51, to 6581.81; the American Stock Exchange index rose 1.91, to 1246.18; and the Russell 2000 index of smaller-company stocks rose 3.19, to 573.10.

* Advancing issues outnumbered declining ones by 8 to 5 on the NYSE and the Nasdaq Stock Market. NYSE trading volume rose to 1.29 billion shares, from 1.26 billion on Friday, and Nasdaq volume totaled 1.72 billion, up from 1.6 billion.

* The price of the Treasury's 10-year note rose $3.44 per $1,000 invested, and its yield fell to 4.15 percent, from 4.19 percent on Friday.

* The dollar rose against the Japanese yen and the euro. In late New York trading, a dollar bought 110.12 yen, up from 109.50 late Friday, and a euro bought $1.2259, down from $1.2271.

* Light, sweet crude oil for October delivery settled at $43.87, up $1.06, on the New York Mercantile Exchange.

* Gold for current delivery rose to $404.10 a troy ounce, from $401.90 on Friday, on the New York Mercantile Exchange's Commodity Exchange.