Technology stocks lead the rebound Dell surges $8.375

Cisco jumps $8.125

Lucent adds $7.25

September 02, 1998|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks rebounded yesterday from the second-worst decline in the 1990s, with technology shares leading the climb, followed by companies whose shares appeared to have been beaten down further than warranted by their earnings outlooks.

Broad market indexes again yesterday mirrored the Dow Jones industrial average, the Standard & Poor's 500 index and the Nasdaq composite, with most of them gaining about half what they had lost in Monday's market plunge.

The Russell 2,000 index, which tracks small capitalization stocks, jumped 10.15 to 348.10; the Wilshire 5,000 index gained 304.30 to 11,106.10; the American Stock Exchange composite index added 23.61 to 588.68; the New York Stock Exchange composite index recouped 15.33 to 495.93; and the S&P 400 midcap index got back 9.15 to 290.25.

The Sun-Bloomberg Maryland index, which tracks the top 100 Maryland stocks by market valuation, gained 3.16 to 175.70.

Cisco Systems Inc. gained $8.125 to $90; Lucent Technologies Inc. rose $7.25 to $78.125; and Microsoft rallied $5.3125 to $101.25. Dell Computer Corp. jumped $8.375, or 8.4 percent, to $108.375 after falling 16 percent Monday.

IBM rose $5.3125 to $117.9375 after the Wall Street Journal reported that the company was looking for a buyer for its Global Network operations and could garner $3 billion to $4 billion from a sale.

Merck & Co., which lost about 16 percent between July's high and Monday, gained $6.5625 to $122.50.

Boeing Co. rose $2.125 to $33.0625 after the world's largest aircraft maker said its board authorized it to repurchase as much as 15 percent of its common stock in a bid to boost its share price. The stock buyback would cost about $4.5 billion.

Amazon.com Inc. tumbled $3.7969 to $79.9531 on concern that the No. 1 online bookseller's earnings prospects don't justify its share price. The company has a market value greater than bricks-and-mortar booksellers Barnes & Noble Inc. and Borders Group Inc. combined, though it has yet to post a profit or break even.

Pub Date: 9/02/98

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