Dow Surges 103 Points; Nasdaq Ends Down 10
The Dow Jones industrial average jumped above 8,900 for the first time Friday as another late-day rally underscored investors’ enthusiasm for stocks.
The Dow surged 103.38 points, or 1.2%, to 8906.43. The Standard & Poor’s 500-stock index rose 9.42 points, or 0.9%, to a record 1099.16. The Nasdaq composite fell 10.82 points, or 0.6%, to 1789.16 as the computer-related shares that dominate the index declined on signs that Asia’s slowdown is hurting sales.
More than 717 million shares changed hands on the New York Stock Exchange, the most since 723 million shares were traded Feb. 2.
The volume spike stemmed in part from so-called triple witching, which is the expiration of options on individual stocks and options and futures on U.S. stock indexes. The market is often volatile on such days, as investors buy and sell large blocks of stock to unwind their earlier positions.
Boeing rose $2 to $53.44 after saying it will eliminate 8,200 jobs by 2000. The aircraft maker said it won’t take special charges for the cuts.
Oil companies rose on optimism that crude prices have reached bottom.
The stock market is getting a boost as mutual funds rush to invest the large inflows they’re receiving from individual investors before the end of the quarter.
In February, a net $19.5 billion was invested in stock funds, up from $14.6 billion in January, according to the Investment Company Institute. Those funds report their performance to investors at the end of each quarter, giving fund managers with fresh cash just seven trading days to buy stocks if they want to show they are fully invested.
This is the eighth straight week that stocks have gained. This week, the Dow jumped 3.5%, and the S&P; 500 rose 2.9%. The Nasdaq rose 1%, even with Friday’s loss.
The Dow passed three milestones this week--8,700, 8,800 and 8,900--as stocks surged in the final hour of trading almost every day. Both the Dow and the S&P; 500 set records every day.
It’s considered a positive sign when stocks end the day strongly. It shows that big institutions feel confident about market action during the day and respond by committing large sums just before the market closes.
Oil companies rose on optimism that oil-producing nations will agree to cut production to bolster prices. Oil ministers from Norway and Mexico--two of the world’s biggest exporters outside of the Organization of Petroleum Exporting Countries--met to discuss energy policy without indicating whether they favored reducing output.
Crude oil prices have dropped 26% since late November, when OPEC announced its intention to boost oil-production quotas by 10%. Since then, the Philadelphia Oil Service Sector Index has fallen 23%. On Friday, it rose 3.6%.
Chevron led the Dow higher, rising $3.06 to $86.88. Halliburton rose $2.38 to $48.13.
