Dow Briefly Tops 11,500; Nasdaq Declines Slightly
The Dow Jones industrial average jumped to a record high Tuesday and bobbed above 11,500 for the first time, but profit-taking in technology stocks prevented the Nasdaq composite index from achieving its first close over 4,000.
Elsewhere, Mexico’s main share index rose to a record, closing for the first time above the 7,000 mark, on hopes the ruling party would muster enough votes to approve the government’s 2000 spending program. The IPC index added 0.3% to 7,007.75.
The broader U.S. market was mixed, with industrial stocks such as Alcoa and 3M surging and tech stars such as Yahoo and Qualcomm giving ground.
The Dow rose as high as 11,517.39 before closing up 85.63 points, or 0.8%, at a record 11,476.71, easily topping the old peak of 11,405.76 set Thursday. The index now is up 25% for the year.
The Nasdaq composite, meanwhile, eased 3.27 points to 3,972.11, halting a seven-session streak of closing records. A rally early in the day had lifted the index to 4,022.14 before sellers swarmed in the final hour of trading.
It was the second time in three sessions that Nasdaq crossed 4,000 and pulled back. Still, it was less than two months ago that the technology-dominated index flew past 3,000. And with a 81% gain in 1999, Nasdaq remains less than a percentage point shy of a record for the biggest one-year gain by a major U.S. index.
Stocks were helped along Tuesday by a report that consumer confidence soared in December to the highest level in 31 years.
But the bond market, fearful of the strong economy, didn’t like the confidence report: The yield on the benchmark 30-year Treasury bond edged up to 6.48% from 6.46% Monday.
And while the Dow gained, falling stocks slightly outnumbered winners on the New York Stock Exchange and on Nasdaq. Volume continued to lighten.
Among the day’s highlights:
* Several of 1999’s biggest tech winners were hit by profit-taking. Chip equipment maker SDL, up 1,009%, slid $10.38 to $219.63. In the telecom group, JDS Uniphase, up 821% this year, fell $15.75 to $319.50, and Qualcomm, up 1,842%, slipped $10.44 to $503.
Also, Yahoo tumbled $24.75 to $390.25 after trading as high as $420. Intel lost $2.06 to $83 and America Online was off $2.19 to $76.50.
But Retek and Elcom International, which make software to enable businesses to buy goods over the Internet and track purchases, both jumped. Retek rose $8.94 to $93.94 and is up sixfold since its Nov. 18 initial offering. Elcom climbed $16 to $36.50, bringing its gain for the year to 1,784%.
* Many Internet infrastructure stocks also were hot, including Sycamore Networks, up $20.63 to $316.13, and Liberate Technology, up $14.88 to $241.25.
* Some buyers were hunting around for relatively modestly valued tech stock. Buyers bid up Agilent Technologies, for example, pushing shares of the recent Hewlett-Packard spinoff up $8.69 to $61.50.
* The Dow’s big gainers included Alcoa, which rose $2.44 to $80.50. The aluminum producer has been a surprise star for the Dow in 1999, soaring 116% for the year.
Among other blue chips, 3M surged $3.13 to $96.88, American Express gained $3.50 to $161.75, International Paper rose $1.06 to $55.31 and GM rose $1.81 to $72.56.
* Orbital Sciences rose $3.75 to $18.50 after the unprofitable satellite maker said it won a five-year NASA contract valued at as much as $1.5 billion.
* A rally in some financial stocks sent Morgan Stanley Dean Witter up $2.63 to $134.25 and Citigroup up $1 to $55.50.
* Major telecom companies rebounded from a sell-off Monday. MCI WorldCom gained $2.44 to $80.44 and Bell Atlantic jumped $2.06 to $62.19.
* Sony’s streaking U.S.-traded shares added $12.81 to a record $267.50, as tech shares in Japan continued to pace that market’s advance. Japan’s Nikkei stock average rose 1.3%.
Among other U.S.-traded Japanese shares, Hitachi zoomed $16.94 to $157.94 and Kyocera rocketed $25.63 to $239.63.
Market Roundup, C9
