Market surge is led by big names IBM, American Express and GE up more than $6

J. P. Morgan also strong

September 09, 1998|By BLOOMBERG NEWS

NEW YORK -- International Business Machines Corp. and American Express Co. jumped upward yesterday, as technology and financial stocks, battered in recent weeks, led the market's climb.

Among big gainers in the Dow industrial average, IBM gained $6.5625 to $125.9375, American Express climbed $6.375 to $80 and McDonald's Corp. jumped $6.3125 to $4.4375.

And General Electric Co. gained $6.25 to $81.875 after its engine unit said it expects this year's sales to rise 43 percent to $10 billion, boosted by record sales at its maintenance business.

American Express gained $6.375 to $80, and J. P. Morgan & Co. surged $3.5625 to $90.50. U.S. Bancorp rose $5.8125 to $43.75, and Citicorp rose $6.1875 to $98.6875.

Some financial stocks, including Lehman Brothers Inc. and Travelers Group Inc., had lost about 50 percent in the past month as they disclosed losses from weak currencies and securities trading in emerging markets. Yesterday, Lehman rose $4.8125 to $42.875, and Travelers gained $3.125 to $42.1875.

Dell Computer Corp., Microsoft Corp. and other computer-related stocks rose on optimism that lower interest rates could spur companies to buy more PCs, software and related equipment.

Dell, which had lost 22 percent of its value in the last three sessions of August, gained $5.1875 to $59.9375 and was the TC most active stock in U.S. markets. Dell's 2-for-1 stock split was effective yesterday.

Microsoft rose 5.3438 to $101.9688. America Online Inc. rose $9.25 to $95.25 and Yahoo! Inc. gained $9.25 to $84.625 as investors snapped up Internet-related stocks that are as much as 50 percent below their peaks.

Four stocks rose for every one that fell on the New York Stock Exchange. Sixty-nine stocks touched 52-week highs; 493 sank to 52-week lows.

On the Big Board, 810.57 million shares changed hands, making it the 10th-busiest day ever. Nine of the NYSE's busiest days ever have come in the past month. Four of its busiest days have been since the beginning of September.

The NYSE composite index gained 22.28, or 4.58 percent, to 508.59, and the American Stock Exchange Composite Index gained 22.02, or 3.65 percent, to 624.73.

The Russell 2,000 index of small stocks gained 14.86 points, or 4.28 percent, to 361.93, its biggest one-day gain in percentage terms since its rose 6.73 percent on Oct. 30, 1987, in the aftermath of that year's stock market crash.

L The Wilshire 5,000 index rocketed 423.10 points to 9,354.26.

Boeing Co. rose $2.25 to $36.1875 after winning a $2.7 billion order to sell jetliners to Brazilian carrier Varig.

AT&T Corp., the largest U.S. long-distance company, rose $2.50 to $55.75 after a U.S. appeals court upheld restrictions late Friday on SBC Communications Inc. and other regional Bell phone companies to keep them out of the $70 billion U.S. long-distance telephone market.

AT&T is the No. 1 U.S. phone company.

H. J. Heinz Co. climbed $2.125 to $54.1875 after the world's largest maker of ketchup reported that its first-quarter profit rose to 60 cents a share, from 53 cents a year ago, beating by a penny the average estimate from analysts surveyed by First Call Corp. Heinz will overhaul its European business after streamlining U.S. operations, investors and analysts said.

Merck & Co. gained $3.375 to $125.50 after the world's biggest drugmaker said its experimental painkiller Vioxx can help arthritis patients.

Dow Chemical Co. rose 50 cents to $80 after it entered alliances with Biosource Technologies Inc. and Illinois Foundation Seeds Inc. to try to speed development of genetically modified plants.

Viacom Inc. rose $4.1875 to $60.3125 after being raised to "attractive" from "neutral" by a Bear, Stearns & Co. analyst.

Pub Date: 9/09/98

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