Stocks vaulted to record highs Wednesday, powered by investor enthusiasm over a stronger dollar and fresh evidence of slow but steady economic growth.
The Dow Jones industrial average shot up 86.46 points to 4,465.14, topping its record high of 4,439.15 set on May 24. It was the largest one-day gain since Aug. 21, 1991.
Advancing issues led decliners by more than 2 to 1 on the New York Stock Exchange. Volume was moderately heavy at 358.16 million shares as of 4 p.m., up from 280.95 million Tuesday.
Stocks got a boost from the dollar, which rose 2 percent against the yen and the mark after international central banks intervened to support the currency.
The market also was supported by a round of economic reports showing slow but steady growth in the economy.
“The worries of the last two or three weeks that we might be moving dangerously close to a recession can be put on the back burner for the time being,” declared Hugh Johnson, market strategist at First Albany Corp.
Some of the stocks that moved substantially Wednesday:
Micron Technologies rose 3 to 44 5/8.
IBM rose 1 7/8 to 93 1/4.
Compaq rose 1 1/8 to 39 1/8.
Computer stocks recovered from early morning losses as investors moved in as bargain hunters.
PepsiCo rose 1 5/8 to 49.
Coca-Cola rose 1 1/2 to 61 5/8.
Soft-drink stocks improved as investors bought recession-resistant issues. Also, a Pepsi division introduced a line of low-fat dairy shakes, produced in alliance with the nation’s largest dairy cooperative, Mid-America Dairymen Inc.
Merck & Co., up 1 7/8 to 47 1/8.
Johnson & Johnson rose 2 to 66 1/8.
Pfizer rose 1 3/4 to 88 1/4.
Drug stocks rose as investors took shelter in recession-resistant issues.
Seagram rose 1/8 to 30.
The Wall Street Journal reports that the company plans to establish and fund an entertainment company to be run by Sidney Sheinberg of MCA, in which Seagram recently agreed to acquire an 80 percent stake.
Intel rose 1 3/4 to 112 1/4.
Microsoft rose 1 11-16 to 84 11-16.
Novell rose 9-16 to 19 5-16.
Computer stocks recovered from early morning losses, as investors moved in as bargain-hunters.
NetManage rose 3/8 to 14.
The company, which develops and sells Windows software products, said it had opened a branch in Tokyo.