Microsoft didn't say how much it hopes to raise in its offering, but in September the company's board said the company could take on as much as $6 billion in debt. The software maker, which has more than $25 billion in cash, said it plans to use the money for working capital. The stock slipped 10 cents to $19.32.
"When Microsoft comes in and does a deal I think it's a vote of confidence in technology," said Nick Kalivas, vice president of financial research at MF Global in Chicago. He noted that the money it raises could allow Microsoft to go on a shopping spree to acquire attractive technology companies.
Dish Network jumped $2.61, or 17%, to $17.92 after the company said its first-quarter profit rose 21% as revenue climbed partly on equipment sales.
Energy stocks fell as light, sweet crude slipped 13 cents to $58.50 per barrel. Chevron Texaco fell $2.38, or 3.4%, to $68, while Occidental Petroleum fell $2.44, or 3.7%, to $62.88.
Some analysts say the rally is doomed to collapse because investors are becoming too quick to declare that the economy's problems are receding.
Christian Bendixen, director of technical research at Bay Crest Partners in New York, said the economy remains troubled beyond what many analysts concede and that he expects the market will tumble again and perhaps breach the lowest levels of early March.
"It's time to be a little more defensive," he said, pointing to areas like consumer staples, health care and energy stocks.
Bond prices mostly rose. The yield on the benchmark 10-year Treasury note fell to 3.17% from 3.29% late Friday.
The dollar was mixed against other major currencies, while gold prices fell.
Volume on the NYSE came to 1.5 billion shares.
Overseas, Britain's FTSE 100 fell 0.6%, Germany's DAX index lost 1%, and France's CAC-40 slid 1.9%. Japan's Nikkei stock average rose 0.2%.