Nasdaq stocks powered higher yesterday in a session dominated by news on the merger front. The Nasdaq Composite Index rose 32.31 points, or 1.3 per cent, to close at 2,493.71, outpacing gains in blue chips. The Dow Jones Industrial Average was up 46.35 points, or 0.5 per cent, to 9,832.51.

Internet companies Yahoo! and Broadcast.com helped pace technology stocks with news Yahoo! would buy the Web broadcaster in a deal worth $5.7 billion (#5.2 billion).

Yahoo! shares jumped $11 3/8 to $179 3/4 (#166) and Broadcast.com surged $11.81 to $130 (#120) placing the two among the top gainers on Nasdaq.

Semiconducter equipment makers Novellus Systems and Lam Research also rallied after a Merrill Lynch analyst said the two companies were likely merger partners. Neither company commented on the report. Novellus shares rose $3 1/2 to $585/8 (#54) and Lam Research gained $4.81 to $33 13/16 (#31).