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Spokane, Washington  Est. May 19, 1883

Dow Shoots Up 36.28, Tops 4,800

Associated Press

Stocks shot to record highs on Thursday, as hopes for an interest-rate cut were heightened by fresh evidence that the economy is slowing.

The Dow Jones industrial average climbed 36.28 to 4,801.80, closing above 4,800 for the first time and setting a new record closing high for the third consecutive session.

Advancing issues had an 11-to-8 lead on decliners on the New York Stock Exchange. Big Board volume was heavy, with a revised 382.87 million shares changing hands as of 4 p.m., up from 381.42 million on Wednesday.

Blue chip issues outdistanced the broader market, which was held back by another poor performance in computer-related shares.

Some market participants said trading values were skewed by Friday’s quarterly triple expiration of options and futures contracts, which tends to lend volatility to the market. But they also cited fundamental reasons behind the market’s strength.

“The real catalyst for today’s continuation of the rally was the bond market rally,” said Todd Clark, managing director at Rodman & Renshaw Capital Group Inc. “The (30-year Treasury) bond is below 6.5 percent for the first time since early July. That’s caused some interesting things to occur in equity land.”

Some of the stocks that moved substantially Thursday:

NYSE

IBM fell 1-1/4 to 93-3/8.

The stock dropped 2-7/8 on Wednesday after IBM said shipments of its new mainframe computer would be delayed.

Cypress Semiconductor fell 6 to 39-3/4.

Alex. Brown downgraded Cypress shares to “buy” from “strong buy.” Cowen & Co. downgraded them to “neutral” from “buy,” saying supply of static random access chips, which Cypress makes, is growing sooner than expected.

Phillips Van-Heusen fell 2-5/8 to 11-3/4.

The New York City-based clothing maker said Wednesday that thirdquarter earnings will be reduced by about $23 million before taxes, citing the cost of closing three plants and about 200 outlet stores.

NASDAQ

Intuit rose 3-3/4 to 47.

The software maker introduced a new version of its popular Quicken financial software that incorporates on-line stock information, bill payment and banking services.

Apple Computer fell 2-3/8 to 40.

The stock fell as Morgan Stanley lowered its earnings estimates and, along with PaineWebber, voiced concerns about the computer maker’s ability to meet demand.