IBM leads Dow's climb to record 11,031.59

Index up 20% this year

Nasdaq rises 31 points

Wall Street

May 08, 1999|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks rose yesterday after a government report on wages and jobs eased concern that the Federal Reserve Board will raise interest rates. International Business Machines Corp. led the Dow Jones industrial average to a record on an optimistic sales forecast.

The Dow average rose 84.77 to a record 11,031.59.

The Nasdaq composite index, packed with computer stocks, climbed 31.34, or 1.3 percent, to 2503.62. The Standard & Poor's 500 index climbed 12.95, or 1 percent, to 1,345.

Elsewhere on the broad market, the Russell 2,000 index, a benchmark of small-cap stocks, rose 2.73 to 436.11; the Wilshire 5,000 index jumped 95.22 to 12,295.06; and the S&P 400 midcap index added 3.75 to 398.74. The American Stock Exchange composite index slipped 0.52, to 786.29.

The Sun-Bloomberg Maryland index of the top 100 Maryland stocks lost 0.62 to 188.41.

Advancers outnumbered decliners by a 16-to-13 ratio on the New York Stock Exchange, where 819.1 million shares traded.

For the week, the Dow rose 242.55 points, or 2.3 percent, and the index is up 20 percent this year. It had closed above 11,000 for the first time Monday. The S&P 500 rose 0.7 percent for the week, and the Nasdaq fell 1.5 percent.

Texaco Inc. jumped $5.0625 yesterday to $67.25. The oil company is in talks to be bought by rival Chevron Corp., a source familiar with the negotiations said. Chevron fell $2.9375 to $94.875.

Republic New York Corp. jumped $8.4375 to $70 on speculation that the New York-based bank could be taken over, analysts said. The stock's surge, its biggest since at least 1981, brought the company's market value to more than $7 billion.

IBM rose $8 to $217.25 after analyst Gary Helmig at SoundView Technology Group reiterated his buy rating on the No. 1 computer maker and said the stock could reach $225 within a year. IBM had exceptionally strong PC and mainframe sales in April, and the company's PC server business should thrive in the second quarter, Helmig said.

Intel Corp. climbed $1.25 to $60.9375 after analyst Erika Klauer at BT Alex. Brown Inc. maintained a "strong buy" rating on the world's largest chip maker. Unit sales of microprocessors are still strong, she said, and she does not see significant declines in average selling prices.

Among other technology issues, America Online Inc. fell $1.5625 to $118.1875; Dell Computer Corp. rose 75 cents to $40.375; and fell $1 to $136.375.

Gold stocks such as Newmont Mining Corp. were the biggest losers in the S&P 500, tumbling with the price of bullion after the United Kingdom said it will sell more than half its $6.5 billion gold reserves. The price of gold fell 2.4 percent, its largest drop in more than a year. Newmont, the No. 1 U.S. gold miner, fell $3.3125 to $22.75. Homestake Mining Co. lost $1.1875 to $9.4375; and Barrick Gold Corp., the world's fourth-largest producer, slid $2.75 to $20.50.

Financial stocks contributed most to the S&P 500's advance. Fannie Mae rose $3.5625 to $72.125.

Pub Date: 5/08/99

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