October 29, 1997 in Nation/World

High-Tech Stocks At Core Of Wall Street Turmoil

Associated Press
 

The technology engine behind Wall Street’s bull market is still cranking. But this week’s violent gyrations in stocks have left many investors unsure about how much fuel is left.

Share prices of technology companies on Tuesday staged a powerful rebound from the day-earlier selloff, lifting the broader market higher. Buoyed by a rally in IBM stock, the Dow Jones industrial average retraced more than half its record 550-point plunge of Monday and posted its biggest point gain ever for a single day.

The Dow rose 337.17 points to close at 7,498.32. The gain beats the market’s previous one-day record of 257.36 set on Sept. 2.

The high-tech industry’s might - a key reason for the nation’s record economic boom - was as critical to the market rebound as its retreat. But after the unusually sharp 7-percent setback on Monday, several market experts say investors remain shaken about a futuristic business into which they’ve poured billions of dollars.

A key reason for the wild ride was uncertainty in Asia, where economic turmoil has sent markets into a tailspin. U.S. high-tech companies hit hardest by Monday’s selloff have big operations in Asia and could lose demand.

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

NYSE

IBM, up 9-3/8 at 99-3/8.

The Armonk, N.Y.-based company said its board authorized the repurchase of up to an additional $3.5 billion in common shares.

Boeing, up 4-7/8 at 47-7/8.

The Seattle-based aerospace company said that Tunisair, the flag carrier for Tunisia, has ordered four Boeing 737-600s and taken options for three additional planes.

PacifiCorp, down 7/16 at 21-15/16.

PacificCorp, an energy company based in Portland, agreed to sell the natural-gas gathering and processing systems operations of its TPC Corp. unit to a unit of El Paso Energy Corp. for $195 million.

NASDAQ

Intel Corp., up 10-1/4 at 85.

With large operations in Asia, the world’s biggest maker of computer chips soared amid a report on the CNBC cable TV station that it planned to buy back stock. The buybacks were seen as corporate signals of confidence in the market, and analysts say the Asia problem may have been exaggerated.

CMP Media, down 6-3/8 at 18.

The Manhasset, N.Y.-based print and online publisher reported third-quarter earnings that fell below Wall Street analysts’ estimates.

AMEX

Lancer, down 1-1/2 at 12-7/16.

The San Antonio, Texas-based maker of fountain soft drink equipment reported third-quarter earnings that fell below Wall Street analysts’ estimates.

© Copyright 1997 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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