Market shatters another barrier Dow gains 40.46 points to close at 5,023.55 on volume of 405.9 million

Wall Street


NEW YORK -- U.S. stocks surged yesterday as investors moved into stocks that will benefit if the economy keeps growing next year.

The big news, of course, was the Dow Jones industrial average's 40.46-point jump to 5,023.55 to close above 5,000 for the first time.

The Standard & Poor's 500 index, which represents 75 percent of the value of all U.S. stocks, gained 3.39, or 0.57 percent, to 600.24, surpassing last week's record 600.07 and logging its 70th record this year.

A rally in telephone, oil, soft drink, electrical equipment and drug stocks was joined by gains in insurance, bank, auto and machinery issues.

In the rally, six stocks rose for every five that fell on the New York Stock Exchange, where volume climbed to 405.9 million shares from this year's average of 341.9 million shares.

Computer stocks helped send the Nasdaq composite index down 4.48, or 0.44 percent, to 1024.99, its second straight decline.

Beyond that, the Wilshire 5000 index rose 14.08, or 0.24 percent, shy of a record, to 5,887.19; the Russell 2000 index of small-company stocks fell 1.1, or 0.36 percent, to 301.12 and the American Stock Exchange market value index slid 3.04, or 0.57 percent, to 528.55.

Copper and aluminum makers jumped. Alcoa climbed $2.75 to $55.125, while Phelps Dodge Corp., one of the world's biggest copper producers, surged $3.25 to $66.75.

Makers of so-called cyclical goods also rose, in part, because those stocks have lagged the rest of the market during this year's rally, analysts said.

General Motors Corp. climbed $1.375 to $49; PPG Industries Inc., formerly Pittsburgh Paint & Glass, climbed $1.50 to $44.625; United Technologies Corp. advanced $1.75 to $90.75; and Eaton Corp., an auto parts maker, climbed $1.25 to $53.375.

Among telephone stocks that rallied, Bell Atlantic Corp. rose $1.25 to $65.125; BellSouth Corp. gained 75 cents to $39.50; and Ameritech Corp. rose 75 cents to $55.25.

Among drug stocks that climbed, Johnson & Johnson rose $1.75 to $85.375; American Home Products Corp. gained $1.25 to $91.375; and Mallinckrodt Group Inc. rose $1.25 to $34.50.

Food stocks, whose earnings are regarded as consistent whether there's an economic boom or bust, climbed. Coca-Cola Co. jumped $1.50 to $76.75; PepsiCo gained 37.5 cents to $54.875; Campbell Soup Co. surged $1.125 to $54.375; and General Mills Inc. advanced $1.50 to $55.

Retail stocks that joined the advance included Wal-Mart Stores Inc., up 25 cents to $24.50; Fred Meyer Inc. went ahead $1.375 to $20.75; J. C. Penney Co. climbed $1.375 higher at $47; and Nordstrom Inc. rose 87.5 cents to $42.375.

Dell Computer Corp. helped trigger a third day's decline in computer stocks. After the stock market closed yesterday, Dell posted better-than-expected fiscal third-quarter earnings, saying net income surged to 75 cents a share from 47 cents last year, exceeding analysts' estimate of 70 cents.

Concern about future growth, however, drove down Dell shares $1.125 to $40.25.

Losses in a host of other software and semiconductor companies suggested that investors remain skeptical about the strength of some companies' earnings in coming quarters. The latest concerns came on top of Monday's stock-market retreat, when high-technology stocks tumbled amid questions about the strength of consumer demand for computers this Christmas season.

The Interactive Week internet index slid 5.23 yesterday to 233.65. Sun Microsystems Inc. slid $1.875 to $79.75; Netscape Communications Corp. plunged $8.50 to $107.75; Uunet Technologies Inc. collapsed $20.25 to $73; Spyglass Inc. skidded $14 to $90.75; and Netcom On-Line Communication dropped $7.75 to $66.625.

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