Stock market surge sends all indexes scampering Russell 2,000 hits record, S&P 500 soars 3.13% while Dow is rocketing 3.4%: Wall Street

September 03, 1997|By BLOOMBERG NEWS

NEW YORK -- Although overshadowed by the rampage of the Dow Jones industrial average, other major stock indexes posted substantial gains yesterday.

While the Dow jumped 257.36 to 7,879.78, the Standard & Poor's 500-stock index rose 28.11 points, or 3.13 percent, to close at 927.58 points. The Nasdaq composite index, home to many small companies and well-known high-technology and health care concerns, was up 30.77 points, or 1.94 percent, to close at 1,618.09.

Small stocks continued their roll as the Russell 2,000 index rose 4.62 points to close at a record 428.05, up 1.09 percent. The Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, jumped 221.24 to 8,901.72; the American Stock Exchange composite index advanced 6.71 to a record 656.87; and the S&P 400 mid-cap index added 4.50 to 318.47, within half a point of its record.

Wal-Mart Stores Inc., General Electric Co. and Travelers Group Inc. rose the most.

The rally was broad. Almost three companies rose for every one that fell on the New York Stock Exchange, where 497.4 million shares changed hands, about 30 million shares below the average of the past three months.

Procter & Gamble Co., which had fallen 13 percent in the past month, rose $4.875 to $138 yesterday, and Coca-Cola Co. rose $2.5625 to $59.875.

Boeing Co. rose $2.50 to $57 after announcing that International Lease Finance Corp. ordered 61 jetliners valued at about $4.5 billion. Rival Airbus Industrie announced a similar order.

C-Cube Microsystems Inc. was among the leaders on the Russell 2,000 index, rising 2.50 to 32.50. C-Cube has jumped 86 percent since its low on May 22, even though it's still well below last summer's high of $48.125.

Promus Hotel Corp. shares rose $1.9375 to $40.75. The company agreed to merge with a rival, Doubletree Corp., in a $2.39 billion stock swap that would create the world's largest hotel company. Doubletree fell $5.125 to $44.875.

Verity Inc. shares dropped $1.375 to $5.0625 after the network software publisher said it expects to exceed the $6 million loss recorded in the quarter ended May as revenue slides to $5.3 million from $8.8 million. The company didn't break out expected per-share results.

Donaldson, Lufkin & Jenrette Inc. shares rose $1.75 to $61.125. Frankfurter Allgemeine Zeitung reported that Dresdner Bank AG, Germany's second-largest bank, is in talks with French insurer Axa-UAP SA to buy 20 percent of the U.S. securities firm, citing "financial circles close to the bank."

The yield on the 30-year Treasury bond fell 5 basis points to 6.55 percent.

Pub Date: 9/03/97

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