Dow Posts Fourth Straight Record
The Dow Jones Industrial Average rolled to its fourth straight record Wednesday, as investors remained optimistic that mild inflation and strong corporate profits will further boost stock values.
The Dow average rose 36.56 points to 7,575.83, closing in on the 7,600-mark just one day after the blue-chip barometer’s first close above 7,500.
Broad-market indexes also edged further into record territory. The technology-heavy Nasdaq market turned higher in the afternoon after struggling through much of the session.
Analysts called the continued rise a vote of confidence in the economy’s mild growth.
“The market believes the economy is slowing, and in the meanwhile profits will be good and any increase in interest rates will be modest,” said A. Marshall Acuff Jr., market strategist at Smith Barney, Harris Upham & Co. “Wall Street isn’t too concerned about the economy.”
Advancing issues outnumbered decliners by an 8-to-7 margin on the New York Stock Exchange, with 1,519 up, 1,058 down and 814 unchanged.
Some of the stocks that moved substantially or traded heavily Wednesday:
NYSE
Kerr-McGee Group, up 3/8 at 3-1/8.
The Oklahoma City-based company’s pigments division reported strong demand for the first half of the year and announced plans to raise the price of a paint pigment in Europe.
Lennar, up 4-1/4 at 30-5/8.
Pacific Greystone, down 2 at 15-1/8.
Lennar, a Miami-based real estate and construction company, agreed to acquire Pacific Greystone of Los Angeles for an undisclosed amount of stock. The agreement, expected to close by early winter, gives Lennar 68 percent of the combined company.
Scientific Games, down 4 at 20-3/8.
Raymond James Financial downgraded its rating on the stock from “buy” to “accumulate,” the Dow Jones News Service reported.
NASDAQ
Numar Corp., up 16-3/16 at 36-15/16.
Halliburton agreed to acquire the oil and gas exploration technology company for stock valued at $360 million, or $39.62 a share. Halliburton is a Dallas-based oil-field and engineering services company. Numar, of Malvern, Pa., makes a device that uses magnetic resonance imaging to evaluate subsurface rock formations in newly drilled wells.
Abiomed, up 3-1/4 at 14-3/8.
The Food and Drug Administration gave the Danvers, Mass.-based medical and dental products company permission to use its heart device for additional applications.