The Dow Jones industrial average rose 29.26 at close at 5,564.74. Advancers led decliners by about 11 to 7 on the New York Stock Exchange, with 1,471 up, 931 down and 741 unchanged. NYSE volume totaled 393.98 million shares, vs. 419.96 million on Friday.

Broader-market indicators were also positive, but only the Nasdaq composite, heavily weighted with technology issues, was holding onto a significant gain.

The NYSE's index rose 1.42 to 347.82. The Standard & Poor's 500-stock index rose 2.82 to 647.89. The American Stock Exchange index set its fifth straight record, rising 1.49 to 587.37.

The Nasdaq composite index gained 12.42 to 1151.12, its third straight record close.

Two big technology-related mergers helped boost that sector.

Before the market opened, Bell Atlantic Corp. and Nynex Corp. announced that the two Baby Bells will merge. Cisco Systems Inc., meanwhile, announced an agreement to buy StrataCom Inc. for $4 billion in the largest takeover in the computer network equipment business. In Nasdaq trading, Cisco shares fell 87 cents to close at $46.87, while StrataCom's stock rose $9.19 to $47.94.

"The market's initial surge was on the merger news," said Dan Ascani, research director at Global Market Strategists of Gainesville, Ga. "But that's not a particularly great reason for the entire market to advance. The market's waiting for other news to push it higher."

Bonds prices opened sharply higher, but trailed lower during the afternoon. The yield on the 30-year Treasury bond edged lower to 6.735. Stocks often rise with bonds because lower interest rates spur consumer spending and trim corporate borrowing costs.