Dow Gains 54.30 As Market Rebounds

Stocks came roaring back Monday in a rebound inspired by internal market forces and confidence in the economic outlook.

Veteran market watchers credited technical factors for much of the buying that hoisted the Dow Jones industrial average and broader gauges sharply higher. The Dow finished with a gain of 54.30 points at 4,395.63. Market measures comprising a wider range of stocks also advanced.

Advancing Big Board stocks beat decliners by about 3 to 2.

The comeback on Wall Street came on moderate volume of 285.59 million shares traded on the NYSE floor as of 4 p.m. EST. That was down from 353.11 million Friday.

The renewed fervor for equities didn’t stem from any particular source. Market analysts said investors simply decided that last week’s declines presented opportunities to buy stocks at reduced prices.

Some of the stocks that moved substantially or traded heavily:

NYSE

USAir, up 3/8 to 8.

The carrier reached a tentative agreement with flight attendants’ unions to obtain cost savings. The stock’s investment rating was raised to “add” from “hold” by the brokerage S.G. Warburg, which cited the tentative cost-cutting accord. Other airline stocks were higher also after the Air Transport Association said industry-wide yields, a measure of airline profitability, posted the first year-over-year increase last month since December 1993.

Callaway Golf, up 3/4 to 14 3/4.

The company has been attracting attention since being mentioned as a potential takeover target.

United Health Care, down 1 3/8 to 36 1/2.

The company’s earnings estimates were cut by Cowen & Co.

EMC, up 2 1/8 to 22 1/8 in NYSE-leading volume.

The company said MCI Communications has decided to use one of its technologies.

NASDAQ

Intuit, down 12 1/2 to 62.

Investors dumped the stock following news over the weekend that Microsoft has abandoned its more than $2 billion bid for Intuit due to government opposition on antitrust grounds. Microsoft rose 1 to 87.

Centocor, down 2 5/8 to 13 5/8.

The biotechnology company said it will continue tests on its treatment of unstable angina rather than seeking regulatory approval now.

AMEX

Forest Labs, up 7/8 to 42 7/8.

The stock was active following news that the Food and Drug Administration refused to accept an application for an infant respiratory drug.