Stocks were boosted Monday by Iraq's decision to allow U-2 surveillance flights.

The Nasdaq gained 14 to 1296, the S&P 500 rose 6 to 835, and the Dow climbed 55 to 7920. Volume declined to 1.23 billion shares on the NYSE, and 1.21 billion on the Nasdaq. Advancers led 18-14 on the NYSE, and 17-14 on the Nasdaq. Upside volume was 66% on the NYSE, and 75% on the Nasdaq. New highs-new lows were 43-130 on the NYSE, and 42-110 on the Nasdaq.

After the close, priceline reported in-line results.

During the day, Sun gained 4.2% on news that it is entering the blade server market.

AMD, up 2.6%, unveiled its fastest chip yet. Intel, up 1.5%, announced several chip advancements. Intel co-founder Gordon Moore said he sees no slowdown in chip advancements.

Cisco, up 2.3%, launched a partnership with Yahoo and moved ahead with its storage switch strategy.

Overstock.com, up 0.1%, is taking on Amazon, which slipped 0.2%.

Wind River gained 18% after raising guidance.

EarthLink, up 1%, and Echostar, up 3.7%, announced a joint offering.

AskJeeves, up 2%, scored a deal with Novartis Pharmaceuticals.

Macromedia, up 4.2%, announced upgrades and new products.

Computer Sciences, down 2%, captured part of the JP Morgan-IBM deal.

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