Dow Continues Rally With Gain Of 9.09
Stocks extended their climb Monday amid hopes that moderating economic growth will cause interest rates to crest soon.
In advancing for a fifth straight session, the market withstood selling by investors eager to cash in profits amassed recently.
The Dow Jones industrial average finished up 9.09 at 3,937.73 after rising to about 3,949 during the last hour of trading.
Advancing issues outnumbered declines by about 3 to 2 on the New York Stock Exchange where volume was heavy at 325.61 million shares as of 4 p.m. EST. That compared with Friday’s unusually brisk turnover of 440.95 million shares, the sixthlargest amount ever traded on the Big Board’s floor.
Broader indicators of stock market activity performed better than the narrow Dow industrials. The NYSE composite index rose 1.31 to 261.75.
Some of the stocks that moved substantially or traded heavily:
Stone Container, up 1-1/8 to 19-7/8.
The company reported a fourth-quarter profit of $29.8 million, compared with a loss of $85.8 million a year earlier.
Aluminum Co. of America, down 3-7/8 to 80.
Investors sold to collect profits made recently on the stock. Cyclical stocks encountered selling pressure amid speculation that slower economic growth could impair earnings. Other metals companies also slumped: Reynolds Metals fell 2-1/4 to 51-1/2.
Boeing, up 3/4 to 47-1/8.
The stock has been a focus of attention since last week when the company announced production and job cutbacks.
McDonnell Douglas, down 1-1/8 to 52-7/8.
The stock slumped after The Wall Street Journal reported that the company may temporarily halt production of its largest airliner, the MD-11, in 1996 due to a shortage of orders.
Michigan National, up 12-7/8 to 101-5/8.
Investors snapped up the stock after news that Michigan National, which had been fighting to stay independent despite stockholder pressure to sell, has agreed to be acquired by Australia’s largest bank.
America On Line, up 3-3/4 to 62-3/8.
Analysts recently have given the company favorable reviews and a Goldman Sachs & Co. analyst reportedly said America On Line is poised to overtake CompuServe as the largest provider of online services.
Colonial Data, up 1-1/8 to 16-3/8.
The telecommunications company posted fourth-quarter income of $1.5 million, compared with $433,000 a year earlier.
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