Stocks’ Rally Powers Ahead as Dow Adds 32
The U.S. stock market’s surprising 1998 rally reached further into record territory on Thursday, as the Dow Jones industrial average briefly crossed the 8,500 mark for the first time.
The Dow finished up 32.89 points to a record 8,490.67 after trading as high as 8,503.
The broad market also advanced, with smaller-stock indexes outpacing the blue-chip Dow. The Nasdaq composite index rose 10.63 points, or 0.6%, to a record 1,777.11; the Russell 2,000 index gained 0.7% to 461.54, nearing its Oct. 13 record close of 465.21.
Winners topped losers by 17 to 11 on the New York Stock Exchange, as volume picked up to 647 million shares, highest since Feb. 5.
In the absence of any bad news on Thursday the path of least resistance for stocks was up, analysts said.
“The market just seems to keep churning higher,” said Guy Truicko, a money manager for Unity Management in Lake Success, N.Y. He expects further gains in stocks, with some minor turbulence next month as companies warn of expected first-quarter profit shortfalls.
“Certain stocks are going to make negative announcements and get murdered,” agreed Robert Streed, senior investment advisor at Northern Trust in Chicago. “But the fundamentals generally are pretty good,” he added. “There will be frightening events out there, but they will pass and the normal upward trend of the market should resume.”
Stocks ignored a lackluster day in the bond market Thursday, as yields rose for the sixth time in seven days, responding in part to economic reports that offered few hints that Asia’s slowdown is weighing on U.S. growth.
The bellwether 30-year Treasury bond yield ended at 5.95%, up from 5.92% on Wednesday.
Also, the dollar slid 1.6 yen, to 127.18 yen in New York, on new signs that Japan might soon take aggressive steps to bolster its flagging economy.
Among Thursday’s highlights:
* Oil-field services shares surged on news of a mega-merger between rivals Halliburton and Dresser Industries. Halliburton jumped $2.50 to $46.50 while Dresser shot up $6.06 to $44.50.
Other winners included Schlumberger, up $2.25 to $75.88, and Western Atlas, up $2.88 to $75.88.
* Many tech stocks continued to rebound. Apple Computer rose $1.19 to $23.50, Dell surged $3.31 to $133.25, Autodesk rocketed $5 to $49.88 (following a strong earnings report), FileNet gained $2.47 to $33.50 and Advanced Micro Devices surged $3.38 to $25.13.
But Compaq fell $1.13 to $32.88 on concerns about its inventory levels.
* Aerospace stocks were prominent among the day’s gainers on the Dow, with Boeing rising $2.69 to $53.94 and jet engine maker United Technologies up $2.44 to $89.94.
* Starbucks leaped $2.13 to $39.88 after the coffee retailer said same-store sales increased 6% for the four weeks ended Feb. 22.
* Union Pacific shares fell $6.56 to $52.06 on news of its dividend cut. Other railroad stocks dipped on the news.
Many foreign stock markets continued to advance. Mexico’s market rose 0.7%, Germany’s gained 1.2%, France’s rose 1.5% and Hong Kong’s jumped 3.1%.
Market Roundup, D6
