Cyclical Stocks Help Dow Recoup Losses

Economically sensitive issues led the stock market’s recovery Monday from Friday’s sharp sell-off.

The Dow Jones industrial average ended up 110.55 at 5,581,00, recouping much of Friday’s 171.24-point drop. The Dow logged its third-largest one-day point gain, after having its third-biggest point drop on Friday.

Both price swings were the largest since 1991. However, since the market has almost doubled in value since then, the movement this year represents less volatility.

Advancing issues led decliners by 7 to 4 on the New York Stock Exchange. Big Board volume was 449.46 million shares as of 4 p.m., far short of Friday’s volume of 544.77 million, the fourth-busiest day in history.

Some of the stocks that moved substantially:

NYSE

General Motors rose 1-7/8 to 52-3/4.

Chrysler rose 2-3/8 to 60-1/4.

Ford rose 1-1/8 to 32-3/8.

Auto stocks rose with other economically sensitive stocks. General Motors rose even after a strike at two GM brake plants forced the automaker to close 14 North American assembly factories.

AnnTaylor Stores rose 1-1/4 to 19.

Alex. Brown & Sons upgraded the stock to buy from neutral, saying merchandise at the women’s clothing chain has improved.

Hewlett-Packard Co. rose 4-5/8 to 95-1/8.

The computer maker announced an alliance with software maker Microsoft Corp. to produce a new line of personal computers for small businesses, and marketing alliance with ANS, an America Online company, to offer Internet service to business customers.

Cable & Wireless PLC

British Telecommunications PLC rose 1/2 to 64-3/4.

Cable & Wireless confirmed Monday that merger talks have ended with rival British Telecommunications PLC to create the biggest telecommunications group in the world.

NASDAQ

Intel rose 1-3/4 to 55-1/4.

Microsoft rose 1-3/8 to 96-1/2.

The companies unveiled a jointly-developed open platform for video, voice and data communications over the Internet. Microsoft also formed an alliance with Hewlett-Packard to produce a new line of personal computers for small businesses.

Netscape rose 6-1/4 to 46-1/4.

America Online Inc. rose 4-3/8 to 48-3/8.

America Online will license Netscape’s Navigator client software technology for use in all of its services. J.P. Morgan commenced coverage of Netscape with a buy rating.

Altera Corp. rose 2-1/2 to 60-3/8.

The company’s subordinated notes were up-graded by Standard & Poor’s, citing the company’s “strong number two position in its niche semiconductor market.” The San Jose, Calif. company makes specialized integrated circuits for engineering development software and hardware.