Dow Surges 84 Points As Investor Jitters Fade

Investor jitters over the impact of Asia’s economic crisis on U.S. businesses eased Monday, sending the Dow Jones industrial average to its first gain in more than a week.

The world’s best-known stock barometer, which rose more than 109 points in afternoon trading, ended the day with a gain of 84.29 at 7,922.59.

Broad-market indexes were mixed, but well above early morning levels. Bargain-hunting of technology stocks helped lift the Nasdaq composite index from a nearly a 21-point decline to finish almost unchanged.

For weeks, uncertainty about the economic climate in Asia has plagued U.S. financial markets. Investors worry that stalled Asian growth may hurt profits of U.S. corporations that sell products or services in Asia or compete with products made there.

The Dow dropped nearly 311 points last week on Asian concerns.

But there were some encouraging developments to help soothe investors’ nerves Monday.

“It’s not as though we are completely over what is going in Asia. There still is a dark cloud over this market,” said Hugh Johnson, chief investment officer at First Albany Corp. “But for a moment, we started getting over the worry.”

Advancing issues outnumbered decliners by a 7-to-6 margin on the NYSE, where volume totaled 596.38 million shares, vs. 572.52 million in the previous session.

Some of the stocks that moved substantially or traded heavily Monday:

NYSE

UAL, up 5-3/8 at 89-1/2.

The parent company of United Airlines said its fourth-quarter profits will meet or beat Wall Street’s expectations.

Lukens, up 6-7/8 at 23-7/8.

Bethlehem Steel, the nation’s second-largest steel maker, is buying rival Lukens for about $400 million in cash and stock.

Piper Jaffray, up 6-5/8 at 36-3/8.

U.S. Bancorp, one of the nation’s biggest banks, is buying the century-old investment banking and brokerage concern Piper Jaffray Companies Inc. for $730 million in cash.

Fluor, up 1-1/4 at 38-1/4.

Fluor said it may sell American Equipment Co., its construction-crane supply unit, as part of a plan to shed noncore assets and raise cash for stock repurchases.

NASDAQ

Sano, up 9-1/4 at 32-1/4.

Elan Corp., an Irish company that specializes in drug-delivery systems, agreed to acquire U.S. rival Sano Corp. for $375 million in stock.

Physician Sales & Service, down 4-11/16 at 18-5/16.

Gulf South Medical Supply, up 2-1/16 at 31-1/8.

The Jacksonville, Fla., company agreed to buy Gulf South Medical Supply Inc., a distributor of medical supplies, for $685 million in stock.