Shares advance to more records Dow industrials rise 32 points, to 8,675

small stocks strong, too

Wall Street

March 12, 1998|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks advanced to records across a broad spectrum for a second day, as investors poured cash into shares of paper makers, small companies and other businesses that have lagged behind the market.

The Dow Jones industrial average rose 32.63 to 8,675.75, its second straight record. International Paper Co., up $1.4375 to $51.875, was its biggest gainer.

The Standard & Poor's 500 index rose 4.22 to a record 1,068.47. The Nasdaq composite index rose 8.34 to 1,756.85, still below its record close of 1,777.11 Feb. 26.

The Russell 2,000 index of small stocks set its first record since October, rising 2.50 to 467.12. That index was the last of the major indexes to top last year's highs, and the record signals that this year's rally has broadened to include smaller stocks. Allied Waste Industries Inc. led the Russell's gain, rising $2.0625 to $24.0625 on news that USA Waste Services Inc. was buying Waste Management Inc.

In other segments of the broad market, the Wilshire 5,000 index of stocks on the New York, American and Nasdaq exchanges climbed 41.68 to 10,182.11, its second record this week, and the S&P 400 midcap index added 2.39 to 360.21, its third record in four days. The American Stock Exchange composite index gained 1.24 to 713.93, its high for the year.

On the New York Stock Exchange, four stocks rose for every three that fell.

Investors increased their net new purchases of U.S. stock mutual funds in the past week. An estimated net $5.85 billion entered equity funds in the week ended Monday, up from $4.02 billion in the previous week, according to Trim Tabs Financial Services Inc., which tracks fund flows.

"The market's in good shape and it's going to keep going up," said Bill Allyn, director of trading for Jefferies & Co. in Short Hills, N.J.

Confidence in computer-related companies helped send stocks higher. Sun Microsystems Inc. rose 81.25 cents to $43.25. The workstation and computer maker said it has no plans to issue a profit warning for its fiscal third quarter.

Intel gained 37.5 cents to $75.875; International Business Machines Corp. rose $1.625 to $99.125; and Compaq rose 18.75 cents to $25.5625.

jTC Cisco Systems Inc. rose $1.25 to $62.625 after analysts said its acquisition of NetSpeed Inc. was a good buy. The computer-networking company said it would buy NetSpeed for about $236 million in stock to boost Cisco's ability to transmit voice and data at high speeds.

Other telecommunications companies also got a boost as competitor Andrew Corp. said it sees lower-than-expected earnings for its fiscal second quarter ending March 31 because of slower demand for its wireless-phone equipment. Andrew fell $2.50 to $22.25.

Lucent Technologies, which also makes telecommunications equipment, rose $3.25 to an all-time high of $111.5625.

Fisher Scientific International Inc. rose $5.4375 to $60.1875, prompting the NYSE to ask the company to make a public statement that may explain why its shares rose so much. A company spokesman declined to comment. The shares were trading fractionally above $51 before Tuesday's announcement of a 5-for-1 common stock split for shareholders of record March 19.

Kohl's Corp. jumped $2.5625 to $85.3125 after the department store chain declared a 2-for-1 stock split and said earnings for its fiscal fourth quarter ended Jan. 31 rose to 90 cents a diluted share from 69 cents a year earlier.

Keebler Foods Co. rose 68.75 cents to 29.75 after the maker of cookies and snack foods said it would buy back up to $30 million of its stock to offset dilution caused by management's exercise of stock options after its initial stock sale six weeks ago.

Forest products company Weyerhaeuser Co. rose $3.375 to $55.75 as the S&P paper and forest products index rose 3.6 percent. Paper and pulp makers expect demand to strengthen this year.

Pub Date: 3/12/98

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