Stocks Top Record, Despite Uncertainty
Stocks jumped higher again Monday, padding last week’s records in tentative trading before a slew of delayed economic figures and a key Federal Reserve meeting on interest rates.
The Dow Jones industrial average rose 33.23 points to 5,304.98, breaking past 5,300 for the first time en route to its fourth new high in a week. The index of 30 blue-chip companies traded in a narrow range most of the day before moving to a decisive gain in the last half hour.
Advancing issues outnumbered decliners by more than 4 to 3 on the New York Stock Exchange, where volume totaled 362.87 million shares as of 4 p.m., slower than Friday’s pace of 384.42 million.
Broad-market indexes also rose. The NYSE composite index added to last week’s record finish, gaining 1.36 to finish at 334.20. The Standard & Poor’s 500-stock index rose 2.60, setting a new high at 624.22. The American Stock Exchange’s market value index rose 2.42 to 547.66.
The Nasdaq composite struggled higher, rising 1.55 to 1,042.51, as technology issues stumbled amid continued economic uncertainty.
Stocks shot higher last week amid hopes the Federal Reserve’s policy-making committee, which meets Tuesday and Wednesday, would respond to discouraging economic signals with a cut in interest rates.
But a delay in many government reports due to the federal shutdown has created some uncertainty about the true course of the economy.
Some of the stocks that moved substantially Monday:
NYSE
Merck, up 1 to 68-7/8
The company released impressive results from initial human testing of a yet-to-be-approved drug at an AIDS research conference. Crixivan, one of a new class of AIDS medicines, combined with two already on the market, appears to be a powerful new weapon against HIV when used with two drugs already on the market, Merck researchers said.
Sterling Chemicals, up 3-3/8 to 12-5/8
The Houston-based chemical maker said it is exploring alternatives, including the sale of the company, to enhance stockholder value, and has retained Lazard Freres & Co. as a financial adviser.
American Express, up 3/8 at 43-1/2
The company added to Friday’s gains on a Business Week story suggesting the company may be a merger target of “another huge financial services company.”
NASDAQ
MCI Communications, 1-3/4 to 29-1/4
Microsoft, down 1/8 to 90-3/8
The long-distance calling company announced an alliance with Microsoft to jointly develop and market on-line and data networking services. As part of the partnership, MCI will use Microsoft’s Internet browsing software in its Internet product offerings and Microsoft will offer ways to sign up for MCI services like conferencing on its Windows operating system software.