Stocks add to gains Dow rises 53 points

Global Marine, Cisco among strong issues

Nasdaq up 16 points

Wall Street

December 17, 1997|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks rose for a second day yesterday, as a rally in South Korean markets gave investors confidence to buy beaten-down stocks such as Global Marine Inc. and Cisco Systems Inc.

"Many stocks were down the last few days, and investors who have a time horizon of more than a week saw an opportunity," said Philip Schettewi, who oversees $4 billion as chief of the Washington, D.C., office of Loomis, Sayles & Co. "It's another case of investors buying on the dips, which overall has been a good strategy."

The Dow Jones industrial average gained 53.72 to 7,976.31, led by International Business Machines Corp. The Nasdaq composite index rose 16.44 to 1,553.00, and the Standard & Poor's 500 index rose 4.65 to 968.04.

Among other broad market indexes, the Russell 2,000 index of small capitalization stocks added 4.58 to 425.34; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, climbed 56.75 to 9,219.51; the American Stock Exchange composite index rose 3.61 to 668.88; and the S&P 400 mid-cap index gained 3.28 to 324.24.

Nineteen of the 30 Dow stocks were higher. About three stocks rose for every two that fell on the New York Stock Exchange.

Stocks were helped by a government report showing inflation in November remained at the lowest level since 1986, and by the Federal Reserve's policy-making committee leaving key interest rates unchanged.

Cisco Systems Inc. gained $2.625 to $80.125, off 11 percent from its July 16 high. IBM rose $2.6875 to $103.5625.

The Philadelphia semiconductor index, down 37 percent from its high, gained 1.1 percent. The Philadelphia oil service sector rose 3.3 percent, but remains off 22 percent from its high.

Global Marine, down 27 percent from its high, rose $2.375 to $28.125.

Steady-growing companies, perceived as "safe" in the midst of Asian economic turmoil, rose to records.

General Electric Co. was up 81.25 cents to $75.4375, and Procter & Gamble Co. rose $2.625 to $83.375.

American depositary receipts of Danka Business Systems PLC fell $17.9375 to $13.0625. The British distributor of office equipment said it will take a $20.5 million charge and report lower-than-expected earnings because a plan to integrate business units is behind schedule.

Micron Technology Inc. rose $1.0625 to $23.5625 after reporting disappointing earnings. Prices for the type of memory chips it makes have fallen so low that they may have reached bottom, some investors say. Micron shares fell almost 60 percent since August.

PepsiCo Inc. fell 62.5 cents to $35.4375 after Morgan Stanley, Dean Witter, Discover & Co. analyst Andrew Conway cut his earnings estimates for the beverage giant from $1.36 to $1.33 for 1998.

Boeing Co. rose $1.6875 to $50.625 after the world's largest aerospace company said it expects to cut employment at its commercial airline unit by 12,000 jobs, or 10 percent, next year.

RJR Nabisco Holding Corp. fell 12.5 cents to $36.25 after announcing plans to cut almost 11 percent of its tobacco work force, resulting in a fourth-quarter charge of about $310 million.

Pub Date: 12/17/97

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