US STOCKS-Market up on tech value; energy shares up on oil

                                
 (Updates to midafternoon)
                                
 By Jennifer Coogan
                                
 NEW YORK, Feb 11 (Reuters) - U.S. stocks rose on Monday,
recovering from last week's losses, as bargain-hunting and
takeover talk sparked gains in the technology sector and a jump
in oil prices lifted energy shares.
                                
 A near 5 percent gain in General Motors Corp's <GM.N> stock
helped the Dow offset a drop in shares of American
International Group Inc <AIG.N>. AIG, the world's largest
insurer, received a rebuke from its auditors for how it valued
some credit derivatives, sending it shares down 11 percent.
                                
 Nasdaq was outpacing gains in the Dow and S&P, led by Apple
Inc. <AAPL.O> and Research in Motion <RIM.TO> <RIMM.O>, maker
of the BlackBerry. Both stocks had fallen more than one-third
from their 2007 highs, making them attractive bargains, traders
said.
                                
 "They could have used AIG as an excuse to sell, but since
we just had one of the worst weeks in years we can ignore
that," said Alan Lancz, president, Alan B. Lancz & Associates
Inc., in Toledo, Ohio. "There's some underlying value in there.
A lot of the technology companies, they really threw the baby
out with the bathwater."
                                
 The Dow Jones industrial average <.DJI> was up 47.64
points, or 0.39 percent, at 12,229.77. The Standard & Poor's
500 Index <.SPX> was up 6.75 points, or 0.51 percent, at
1,338.04. The Nasdaq Composite Index <.IXIC> was up 15.46
points, or 0.67 percent, at 2,320.31.
                                
 On Friday, the Dow Jones industrial average ended its worst
week in nearly five years.
                                
 GM rose after an analyst said the the No. 1 U.S. automaker
might report better-than-expected results from its automotive
operations this week. For details, see [ID:nN11646161].
                                
 Exxon Mobil Corp <XOM.N> led gains on the S&P as crude oil
futures rose 2 percent to $93.59 a barrel.
                                
 Shares of Exxon were up 1.4 percent to $82.90. Oil field
services firm Schlumberger Ltd. <SLB.N> was up 3.7 percent to
$80.25.
                                
 Chevron Corp <CVX.N> is set to join Exxon among the Dow
industrials. The oil company, along with Bank of America Corp
<BAC.N>, will be added to the 30-share average, knocking out
diversified manufacturer Honeywell International Inc <HON.N>
and tobacco maker Altria Group <MO.N>, marking the first change
to the index's components in four years.
                                
 Honeywell shares were down 0.6 percent to $57.47. Altria
shares fell 1.5 percent to $72.03.
                                
 Research in Motion stock was up 5.6 percent to $94.84. 
Apple rose 2.9 percent to $129.32. Citigroup added the iPod
maker to its top picks list.
                                
 AIG shares were down to $44.79, the lowest in five years.
The company disclosed PricewaterhouseCoopers, the company's
outside auditors, said AIG failed to account properly for
derivatives related to risky debt.
                                
 In deal news, Yahoo Inc <YHOO.O> rejected Microsoft Corp's
<MSFT.O> takeover bid as too low, raising the possibility of a
higher offer. Yahoo shares rose 2.2 percent to $29.82, while
Microsoft shares fell 1.1 percent to $28.26.
                                
 Motorola Inc <MOT.N> and Nortel Networks Corp <NT.TO> may
combine their wireless networking units, according to The Wall
Street Journal. Both companies wouldn't comment.
[ID:nN11529544]. Motorola's shares rose 3 percent to $11.60.
 (Editing by Leslie Adler)