Stocks rise after Fed chief speaks Dow industrials gain 57 points, to 7,973

volume is heavy

January 30, 1998|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks continued to rise yesterday, after Federal Reserve Chairman Alan Greenspan said U.S. economic growth will slow because of Asia's difficulties, signaling borrowing costs won't creep higher.

His comments drove the Standard & Poor's 500 index up 8.04 to 985.50, its first record since Dec. 5.

The Dow Jones industrial average rose 57.55 to 7,973.02, led by Aluminum Co. of America, J. P. Morgan & Co. and Exxon Corp.

Some 754 million shares changed hands on the New York Stock Exchange, making yesterday the fourth-busiest ever. On the Big Board, 1,871 stocks rose and 1,100 fell.

Among other broad market indexes, the Russell 2,000 index of small capitalization stocks added 2.08 to 463.78; the Wilshire 5,000 index climbed 80.85 to 9,486.69; the American Stock Exchange composite index added 5.10 to 721.90; and the S&P 400 mid-cap index gained 1.66 to 339.84.

Stocks staged a broad advance, sending oil, software, banking, health-care and drug issues higher, as bonds had their best day in three weeks. The yield on the benchmark 30-year Treasury bond fell 11 basis points to 5.83 percent.

The Nasdaq composite index, full of technology stocks, has done almost four times as well as the Dow this year. Yesterday, it rose 8.67 to 1,619.49, helped by comments late Wednesday that the computer chip maker Intel Corp. is sticking with its forecast for 17 percent growth in personal computer shipments in 1998.

Intel rose $1.125 to $82 yesterday; Cisco Systems Inc. gained $1.875 to $63.75; Oracle Corp. climbed $1.1563 to $22.3438; and Dell Computer Corp. rose $1.50 to $98.625.

JDA Software Group Inc. surged $6.8125 to $40.75 after the developer of management software for retailers said fourth-quarter net income rose a better-than-expected 65 percent, amid strong licensing fee revenue and consulting and service revenue.

Warner-Lambert Corp. said Wednesday that fourth-quarter earnings rose 38 percent, spurred by sales of two drugs introduced last year to fight cholesterol and control diabetes. Its shares rose $1.3125 to a record $152.6875 yesterday. American Home Products Corp. rose $2.50 to an all-time high $96 and Schering-Plough Corp. climbed $1.25 to a record $75.

Yesterday was auspicious for the initial public offering of Keebler Foods Co., the stock rising $2.8125 to $26.8125.

The day had its share of losers. Cor Therapeutics Inc. dropped $10.5625 to $9.4375 after the company got a weaker endorsement from government experts than it was seeking for its Integrilin heart drug.

Callaway Golf Co. fell $3.1875 to $27.125. The maker of Big Bertha golf clubs earned 34 cents a diluted share in the fourth quarter, below the 37 cents analysts forecast.

Career Education Corp. rallied $3.25 to $19.25. On Wednesday, the provider of private, post-secondary education in North America sold 2.85 million shares at $16 a share in an initial public offering.

Dow Chemical Co. fell 68.75 cents to $89.875. The second-largest U.S. chemical company said fourth-quarter profit fell 12.7 percent, a greater decline than analysts expected, as the strong dollar and lower chemical prices undermined higher sales volumes.

Marsh & McLennan Cos. rose $1.625 to $74.4375. The company reorganized its insurance brokerage subsidiary in a move to streamline the business created by its $1.8 billion purchase of rival broker Johnson & Higgins in March 1997.

Reader's Digest Association Inc. rallied 50 cents to $24.3125. On Wednesday, the magazine publisher said its fiscal second-quarter profit fell a smaller-than-forecast 35 percent.

Safeway Inc. rose 93.75 cents to $65.8125. The food and drug retailer said fourth-quarter earnings rose a better-than-expected 42 percent, aided by its Vons Co. purchase. Safeway also declared a 2-for-1 stock split.

Pub Date: 1/30/98

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