Stocks rally to 4th straight advance Computer-guided orders lift Dow industrials to a 65-point gain

Wall Street

September 17, 1998|By BLOOMBERG NEWS

NEW YORK -- The Dow Jones industrial average, spurred by a late-day rally, finished up again yesterday, logging its first four-day gain since June.

Computer-guided buying spurred the rally, with one program adding 94 points to the Dow industrials 15 minutes before the close, according to Birinyi Associates, a Greenwich, Conn., market research firm.

Traders also said the market benefited after President Clinton indicated that he will stay in office.

The Dow industrials finished at 8,089.78 with a gain of 65.39, led by Eastman Kodak Co., after falling 61 points. The Standard & Poor's 500 index climbed 7.80 to 1,045.48, led by General Electric Co. The Nasdaq composite index rose 11.80 to 1,689.91.

Among other broad indexes, the Russell 2,000 index of small capitalization stocks rose 2.12 to 359.85; the Wilshire 5,000 index climbed 75.69 to 9,529.36; the American Stock Exchange composite index gained 4.85 to 629.13; and the S&P 400 midcap index added 3.30 to 311.80.

The Sun-Bloomberg Maryland index, which tracks the top 100 Maryland stocks, rose 1.10 to 181.44.

Kodak jumped $2.9375 to $84.75 after Prudential Securities analysts said a weaker dollar will help multinationals' earnings in the fourth quarter.

GE rose $1.75 to $79.8125 after Merrill Lynch & Co. analyst Jeanne G. Terrile predicted that the stock could rise to $100 a share a year from now.

Charles Schwab Corp. rose $3.375 to $40.5625 after forecasting that third-quarter profit will be between 33 cents and 35 cents.

Major indexes swung between gains and losses throughout the day. Much of the volatility came from eight computer-guided buy programs and seven sell programs, Birinyi Associates said. The programs had the net effect of adding 64.90 points to the Dow and 5.56 points to the S&P 500.

Three stocks fell for every two that rose on the New York Stock Exchange, where about 791 million shares changed hands.

Gillette Co. fell $4.8125 to $40.1875 after the biggest maker of razor blades said third-quarter sales will be down from the year-earlier period.

Host Marriott Services Corp. lost $1.1875 to $10 after warning that third-quarter earnings will be disappointing because fewer travelers from Asia and the pilots' strike at Northwest Airlines hurt its airport duty-free retail business.

Prime Hospitality Corp., owner of AmeriSuites and other hotels, fell $1.0625 to $6.50 after warning that 1998 and 1999 earnings will fall short of forecasts.

Readers Digest Association Inc. rose $1.8125 to $19.9375 after saying it will cut expenses and sell assets, including $100 million of its art collection. The publisher also said it will sell or close its less profitable businesses.

Individual investors put about $4.71 billion into U.S. stocks funds in the week ended Monday, as the U.S. equity market recorded its most consistent gains since July, according to, a Santa Rosa, Calif., research firm.

Pub Date: 9/17/98

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