Triple-Witching Magic Levitates Stocks

Stocks climbed to record heights Wednesday as computer-driven buy programs lifted prices ahead of Friday’s triple expiration of options and futures contracts.

The Dow Jones industrial average rose 41.55 points to 5,216.47, topping a record close of 5.199.15 set last Wednesday. Two broader indexes also rose to new highs.

“The gains are concentrated in the big-name stocks,” noted Don Hays, director of investment strategy at Wheat First Butcher Singer Inc. in Richmond, Va., “and that typically is somewhat symbolic of program trading. The broad market is just barely up. It’s not a wonderful day, unless you’re in the big blue-chip stocks.”

On the New York Stock Exchange, advancers led decliners by 3 to 2. Volume was moderately heavy at 414.69 million shares as of 4 p.m., up from 349.41 million Tuesday.

Blue-chip stocks are often volatile ahead of the quarterly “triple witching” expiration of stock options, stock index options and stock index futures, which often prompts investors to buy or sell the entire Dow index.

Some of the stocks that moved substantially:

NYSE

Bausch & Lomb Inc. rose 2-5/8 to 39-3/4.

The Rochester, N.Y. maker of eye-care products, which has come under fire for questionable marketing practices that depleted its profits, said its longtime chief executive, Daniel E. Gill, will retire at year’s end.

Shaw Industries rose 1/2 to 15-5/8.

Merrill Lynch raised its near-term rating of the carpet-maker’s stock to “above average” from “neutral” and maintained a long-term “buy” rating. The company Tuesday agreed to merge with Maxim Group in a one-for-one stock swap valued at about $115 million. Separately, Shaw agreed to acquire Bell-Mann Inc., a commercial carpet contractor. Also, Shaw was one of six carpet companies named in a Federal antitrust suit.

Micron Technology rose 1/2 to 53-5/8.

A lawsuit seeing class-action status has been filed against Fidelity Megellan, FMR Corp. and portfolio Jeffrey Vinik on behalf of Micron’s shareholders. The action charges that Vinik and Fidelity inflated Micron’s stock price by public statements that they were bullish, so that the fund could dump a large portion of its holdings at artificially high prices.

NASDAQ

Applied Materials rose 3/4 to 45-1/2.

Investors Daily’s reports the company is aiming for $10 billion in sales for the year 2000.

Charming Shoppes rose 1/2 to 2-15/16.

Financial Chief Ivan Szeftel resigned from the Bensalem, Penn. retailer.