Monday's unofficial close: US technology stocks rise on Google deal speculation

US technology stocks rose on Monday on speculation that Web search company Google Inc might acquire online video service YouTube Inc, offsetting concerns about North Korea's nuclear test.
Google shares rose 2 percent to $428.85 after a source familiar with the matter said the Internet search company could announce a deal to buy YouTube as early as Monday.
US President George W. Bush on Monday called the North Korea's reported nuclear test "a provocative act" that requires an immediate response from the UN Security Council. Traders said volume was light as the US bond market is closed for the Columbus Day holiday.
"Everyone is talking about the YouTube take-over maybe being announced tonight, and PNC is taking over Mercantile Bank, so some M&A action helps," said Victor Pugliese, managing director and head of New York Equity Trading at First Albany Corp."
"But reality could set in on Tuesday, depending on how much rhetoric comes in overnight," Pugliese added. "With the tone of President Bush's speech, I would have thought there would be more pressure on the market, but it's a holiday."
The Dow Jones industrial average was down 7.45 points, or 0.06 percent, at 11,842.76. The Standard & Poor's 500 Index was up 0.32 points, or 0.02 percent, at 1,349.90. The Nasdaq Composite Index was up 9.90 points, or 0.43 percent, at 2,309.89.
Monday's decline in blue chips followed a series of record highs set by the Dow average last week.
US regional bank PNC Financial Services Group Inc said it agreed to buy Baltimore-based Mercantile Bankshares Corp for $6 billion in cash and stock, sending Mercantile shares up 21.7 percent to $44.75. PNC shares fell 5.4 percent to $69.65.
In another corporate deal, the family that controls Cablevision Systems Corp has offered to buy out the cable operator's public shareholders in a deal worth about $7.9 billion.
Cablevision shares rose 10.7 percent to $26.49 and were the most heavily traded stock on the Big Board. Still weighing on blue chips, US crude for November delivery climbed 1.37, to $61.10 a barrel. Opec is expected to cut production to halt falling prices.