Stocks Return To Record-Setting Pace
Stocks swung back into record territory Monday as fleeting concerns about inflation and the market’s dizzying advance were swept away by enthusiasm over lower interest rates. The Dow Jones industrial average chugged to its eighth record in two weeks.
Broad-market barometers reached new heights too, rebounding after spending most of the session lower as many investors sold stocks to lock in profits from a two-week rally.
The Dow industrials rose 33.60 points to 5,407.59, barely eclipsing Thursday’s record finish at 5,405.96. The index of blue-chip companies, which lost 31 points on Friday after five straight record closes, was down as much as 25 points earlier Monday.
“It’s hard to keep a good market down,” said Alan Ackerman, senior vice president at Fahnestock & Co. “The money flow into the market is remarkable.”
Advancing issues outnumbered decliners by a slim margin on the New York Stock Exchange, where volume totaled 377.74 million shares as of 4 p.m., down from Friday’s pace.
Some of the stocks that moved substantially Monday:
NYSE
W.R. Grace, up 5/8 to 69-7/8
The chemical maker announced plans to combine its health care business with the kidney dialysis operations of Germany’s Fresenius AG. Grace will receive $2.3 billion in the deal, which follows its rejection of a $3.8 billion bid by Baxter International Inc. to buy the Grace unit outright.
Hilton Hotels, up 9-1/2 to 83-3/8
Walt Disney, down 3/8 to 61-5/8
Hilton announced Friday evening that industry veteran Stephen F. Bollenbach would step down as Disney’s chief financial officer to become chief executive of Hilton. Bollenbach, known for splitting Host Marriott in two and helping Donald Trump’s organization emerge from bankruptcy, was credited with helping persuade Disney chief executive Michael Eisner to borrow heavily for the $19 billion acquisition of Cap Cities/ABC.
NASDAQ
Summagraphics, up 3/4 to 3-5/8
Lockheed Martin plans to merge its CalComp subsidiary with Summagraphics, a maker of large-format color printers used in computer graphics and computer-aided design. Lockheed Martin will hold a 90 percent stake in the new company, which is expected to have annual sales of about $350 million.
AMEX
Laser Tech, up 1-9/16 to 7-1/16
This week’s Barron’s magazine reported Laser Tech is the leader among a handful of companies using smart-bomb technology from the Persian Gulf War to make devices for police to catch speeders. Laser Tech products use lasers instead of radar to measure speed, offering law enforcement officials the ability to target specific cars at greater distances.