Stocks Reach New Highs; Yields Slip
U.S. stocks rose Thursday, with major indexes hitting new highs as long-term bond interest rates slid to the lowest level this year.
The Dow Jones industrial average rose 12.03 points to 8,027.53, up 0.15%. In the broader market, gainers outpaced losers by an 11-8 margin on the New York Stock Exchange in moderate trading, as many traders abandoned Wall Street to celebrate Rosh Hashana.
The Nasdaq composite index gained 12.11 points to a new peak of 1,702.41, its first close above the 1,700 level.
A firmer bond market underpinned stocks. The price of the key 30-year Treasury bond was up, reducing the yield to 6.29%--its lowest level this year--from 6.32% at Wednesday’s close.
Investors at first sold off following the release of manufacturing and weekly unemployment reports, the only significant data out Thursday, then shrugged them off in anticipation of reports on leading economic indicators and employment for September, both due today.
Elsewhere in the broader market, stocks posted modest gains and logged new records.
The Standard & Poor’s 500-stock list rose 5.05 points to 960.46, setting a record for the first time since Aug. 6. The NYSE composite rose 2.35 points to 503.43, beating its record close on Wednesday. The Russell 2,000 index of small stocks hit its fourth straight record close, adding 2.25 points to close at 456.94.
Among Thursday’s highlights:
* Technology issues led the Dow, with Hewlett-Packard up $2.19 at $70.56 and IBM up $1.06 at $104.56.
But tech stocks also had their weak spots, with Motorola down $1.81 to $69.81; Intel down 13 cents to $93.13; and Microsoft down 69 cents to $133.19.
* Tame inflation data were good news for bank issues. BankAmerica rose $1.25 to $76.56, Norwest gained $1.31 to $63.50 and US Bancorp added $2 to $99.56; Citicorp jumped 38 cents to $135.25, and Chase Manhattan climbed 88 cents to $120.446.
* WorldCom was one of the big gainers of the day, surging $3.50 to $37.88. Investors are betting its $30-billion unsolicited bid for MCI Communications will go through and propel it to No. 2 among U.S. long-distance companies from No. 4. MCI rose $1.31 to $36.63.
* Insurer Cigna tumbled $8.25 to $172 after projecting weak third-quarter earnings.
Overseas, Japanese stocks tumbled to an eight-month low, led by electronics and auto makers, as a slew of bad news about the economy fueled pessimism over corporate earnings. (See Investor Spotlight, D7.)
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Market Roundup, D6
