Stocks recover a bit of the sell-off

Dow rises 24 points, but was up 123 earlier in session

September 28, 1999|By BLOOMBERG NEWS

NEW YORK -- Wall Street bargain-hunting and a stronger dollar sparked a modest recovery yesterday from last week's huge stock-market sell-off.

The Dow Jones industrial average rose 24.06 to 10,303.39, halting a four-day retreat, but finished well below its high of the day. The index of 30 blue-chip companies had been up as much as 123.16 points in the morning.

The Standard & Poor's 500 index rose 5.95 to 1,283.31, and the Nasdaq composite index climbed 21.34 to 2,761.75.

Last week, the Dow had fallen a total of 524.30 points, its biggest weekly point loss ever. That plunge left the Dow 1,046.71 points, or 9.2 percent, below its record close of 11,326.04, set Aug. 25. But with yesterday's lift, it still is up more than 12 percent this year.

The technology-laden Nasdaq composite index lost 129.21 points last week, but is up nearly 26 percent for the year.

Elsewhere on the broad market yesterday, the Russell 2,000 index, a benchmark of small-cap stocks, rose 4.77 to 421.86; the Wilshire 5,000 index jumped 46.10 to 11,722.00; the American Stock Exchange composite index climbed 7.44 to 779.23; the New York Stock Exchange composite index added 2.08 to 591.62; and the S&P 400 midcap index gained 2.19 to 384.62.

The Sun-Bloomberg Maryland index of the top 100 Maryland stocks edged 0.13 higher to 186.71.

Advancing issues outnumbered decliners by an 8-to-7 margin on the New York Stock Exchange, where about 780.7 million shares traded.

The dollar, which had fallen to a 3 1/2-year low against the yen this month, rose sharply yesterday on indications that Japan will work to stop the dollar's recent slide with support from other industrialized nations. The dollar climbed 1.83 yen, to 106.00.

There was buying in technology stocks, which were a big catalyst for the market before last week's retreat.

Intel Corp. jumped $2.5157 to $78.1875 and was the most active stock on the Nasdaq, with 35.6 million shares changing hands. Intel lost 11 percent last week. Sun Microsystems Inc. rose $3.75 to $93.9375.

Microsoft Corp. gained 50 cents to $91.4375.

America Online Inc. rose $3.625 to $101.125. International Business Machines Corp., a Dow stock, lost $2 to $123.

Dow component J. P. Morgan & Co. was down $4.1875 to $112.8125, and Chase Manhattan Corp. fell $1.25 to $74.125.

Newmont Mining Corp. led gold mining stocks higher, jumping $4.875 to $27.8125, after bullion posted its biggest gain in 13 years. Homestake Mining Co. added $1.625 to $9.8125, leading a 25 percent gain in the Amex Gold Bugs index, the biggest in its five-year history.

Micron Electronics Inc., the No. 3 direct seller of personal computers, gained $1 to $13.25 on the Instinet trading system after exchanges closed. The company posted fourth-quarter net income of 14 cents a share, beating the average 7 cents estimate from analysts.

CMGI Inc., which invests in Internet and software companies, gained 68.75 cents to $93.8125 in after-hours trading. CMGI reported fourth-quarter profit of $4.74 a share, compared with 30 cents in the year-earlier period and analysts' average expectation of $4.08.

Asarco Inc. rose $3.375 to $26.9375 after Grupo Mexico SA, Mexico's biggest copper producer, offered to buy it for $2.05 billion in cash, topping a cash-and-stock bid by Phelps Dodge Corp. Asarco, which has agreed to merge with Cyprus Amax Minerals Co. to become the world's No. 2 copper producer, said it will weigh all its options. Cyprus Amax said it will explore alternatives to the Asarco merger.

Gilead Sciences Inc. fell $7.75 to $69.5625 on concern that prospects for late-stage experimental drugs including tenofovir, an AIDS drug, do not justify the run-up in the shares this year.

Pub Date: 9/28/99

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