Qualcomm Calls Rise; Nasdaq Rallies

Semiconductors, networkers and Internets powered a Nasdaq rally Monday that
helped the average bounce back 2.8% following last week’s 10.5% decline. Sectors
under pressure included drugs and retailers.

At the close, the VIX had decreased .98 to 23.32.

The OEX August 800 calls ended the day up 5/8 to 7.

Among bigger movers on heavier-than-average volume:

Qualcomm
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rose 2 1/2 to 64 15/16 after announcing a wireless
Internet parnership with Ford Motor
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. The QCOM August 65 calls gained 7/8
to 4 1/8 on triple average volume.

Exodus
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fell 2 7/16 to 44 7/16 after announcing an alliance with
Storage Networks
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. The Exodus August 50 calls slipped 1 3/16 to 1 1/2
on heavy volume of more than 20,000 contracts.

Internet software maker Mercury Interactive
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jumped 14 9/64 to 99
17/64 while the MERQ August 95 calls gained 6 to 8 3/4 on five times the average
volume.

Procter & Gamble
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fell 2 5/16 to 56 7/8 as weakness hit the
consumer stock group. The Procter & Gamble August 55 puts rose 5/8 to 1 1/8
on more than 4800 contracts.

Looking ahead, Tuesday will see the release of personal income and spending
numbers, June construction spending, and the Purchasing Managers Index figure.