Dow Hits 4th Straight High; Dollar Drops
The Dow Jones industrial average surged to its fourth consecutive record finish Wednesday, while bonds held steady as traders awaited key U.S. economy reports due today.
Meanwhile, the dollar fell to a seven-month low against the Japanese yen amid concern over growing U.S.-Japanaese trade frictions.
The Dow climbed 36.56 points to close at 7,575.83, surpassing the previous all-time high of 7,539.27 set Tuesday. In the broader market, advancers outpaced decliners by an 8-7 ratio in heavy trading on the New York Stock Exchange.
The broad rally lifted large- and small-cap indexes and saw technology stocks reverse Tuesday’s losses as the Nasdaq composite index gained 6.16 points to 1,407.85.
“The rest of the market just seems to be tagging along behind the blue chips,” said Hildegard Zagorski, market analyst at Prudential Securities.
Beyond the tech stocks, which erased early losses to end higher, the market was a model of calm, an atmosphere that stood in stark contrast to the volatility of the recent past.
The day’s advances also came despite uncertainty about whether today’s report on retail sales will reinforce recent signs that the economy may be slowing enough to keep inflation under control.
In the bond market, the yield in the benchmark 30-year Treasury bond was unchanged at 6.84% as investors awaited the retailing report.
The Standard & Poor’s 500-stock index rose 4.30 points to 869.57, and the NYSE’s composite index rose 1.74 points to 453.50. It was the fourth consecutive session in which both measures closed at record highs.
The Russell 2,000 index of small-cap stocks rose 0.31 point to 387.62.
Heavy-industry issues, which have lagged other popular sectors such as technology and drugs, posted a strong performance for the second straight day. With popular market averages closing at record highs, investors seem to be seeking those sectors that haven’t grown too pricey.
Among Wednesday’s highlights:
* The Dow drew support from energy-related stocks such as Exxon, up 1 at 62; Chevron, up 1/2 at 73 7/8; and DuPont, up 2 3/4 at 113 7/8. Other big Dow gainers included Johnson & Johnson, up 2 at 63 7/8; Goodyear Tire & Rubber, up 1 7/8 at 61 1/2; Merck, up 1 3/4 at 95 3/4; and Alcoa, up 2 1/8 at 76 5/8.
* Computer-related issues recovered late after Tuesday’s losses. Microsoft gained 2 3/16 to 127, Intel rose 2 5/16 to 147 1/2 and Oracle advanced 1 1/16 to 48 11/16.
But other bellwether technology issues sagged, including Cisco Systems, down 1 5/16 to 63 11/16, and Xilinx, down 1 13/16 to 45 1/4.
* The day’s biggest gainer was Numar, which surged 16 3/16 to 36 15/16 after Halliburton offered to acquire it in a stock swap valued at about $355 million. Halliburton fell 1 3/4 to 79 1/8.
* Financial issues rallied as bond yields held. Merrill Lynch rallied 2 7/8 to a record 58 3/8, American Express rose 3/8 to 71 7/8 and Travelers gained 1 to 61.
Overseas, Tokyo’s Nikkei stock average fell 1.2%, Frankfurt’s DAX index rose 0.3% and London’s FTSE-100 fell 0.3%.
