Stocks advance in lazy session Dow industrials rise 28 points, to 7,823

Traveler's, ACC strong

Wall Street

November 29, 1997|By BLOOMBERG NEWS

NEW YORK -- Most U.S. stocks rose yesterday in a shortened post-Thanksgiving session, bolstered by three days of gains in Japanese stocks. ACC Corp. jumped after it agreed to a $1.07 billion takeover in the latest round of consolidation in the telephone industry.

The Dow Jones industrial average rose 28.35 to 7,823.13, led by Travelers Group Inc., which completed its $9 billion acquisition of Salomon Inc. The Standard & Poor's 500 index gained 3.76 to 955.40, and the Nasdaq composite index rose 6.05 to 1,600.55.

Among other broad market indexes, the Russell 2,000 index of small capitalization stocks added 1.76 to 429.92; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, climbed 34.31 to 9,142.43; the American Stock Exchange composite index lost 0.38 to 662.11; and the S&P 400 mid-cap index shed 0.24 to 321.25.

Trading in U.S. markets ended three hours earlier than usual yesterday.

It was the first opportunity for U.S. stock investors to react to the gains in Japan. Japan's benchmark Nikkei 225 index rose 0.2 percent to 16,636.26, after a 3.5 percent rally Thursday and a 1.1 percent gain Wednesday.

Advancing issues led decliners by 1,694 to 1,024 on the New York Stock Exchange. About 189 million shares changed hands, one-third of the daily average and the least since the day after Thanksgiving last year.

For the month, the Dow industrials gained about 5.3 percent and completed the recovery from the 7.2 percent drop Oct. 27.

Computer-related stocks, which had seen some of the worst losses of the past month, were among yesterday's most active. PC maker Compaq Computer Corp. gained 68.75 cents to $62.50, and rival Dell Computer Corp. rose 31.25 cents to $84.1875. Merrill Lynch & Co. analyst Lucianne Painter reiterated her "buy" rating on Compaq, with a 12-month price target of $100.

Networking equipment maker 3Com Corp. gained $1.625 to $36.25, and semiconductor equipment maker Applied Materials Inc. rose 81.25 cents to $33.

ACC jumped $2.50 to $46.75 after the long-distance and local telephone company agreed to be acquired by Teleport Communications Group for $50 a share. Tel-Save Holdings Inc. also had bid for ACC. Teleport fell $1.50 to $49 and Tel-Save gained 12.5 cents to $21.625.

Telephone shares rallied for a third day. Bell Atlantic Corp. rose 93.75 cents to a record $89.25, and Ameritech Corp. gained $1.0625 to $77.0625. Investors are attracted by their stable earnings and relatively fat dividends.

GTE Corp. rose 87.5 cents to $50.75 after USA Today reported that the company is in preliminary talks to be acquired by British Telecommunications PLC. Both companies failed in recent bids to buy MCI Communications Corp. British Telecom's American depositary receipts fell 50 cents to $78.

Knight-Ridder Inc. rose 37.5 cents to $50.125 after analyst Douglas M. Arthur at Morgan Stanley, Dean Witter, Discover & Co. raised his rating on the newspaper publisher to "outperform" from "neutral."

Medtronic Inc. rose 50 cents to $47.75 after the manufacturer of pacemakers and heart valves won approval from the U.S. Food and Drug Administration to sell a tissue-based heart valve replacement that isn't encumbered by a plastic support ring.

Travelers rose $1.625 to $50.875. The purchase of Salomon, the world's biggest bond trader, makes the new Salomon Smith Barney Inc. the second-largest U.S. securities firm.

Actrade International Ltd. rose $3.50 to $28.6875. Traders said online personal finance bulletin boards, such as Motley Fool and Silicon Investors, touted the stock last week. The company has also been interviewing investment banking firms to help it expand, said Chief Operating Officer Alexander C. Stonkus.

Pub Date: 11/29/97

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