Dow Gains 27.46 In Hope Of Interest Cut

The Dow Jones industrial average rose Monday, fueled by a rally in energy stocks on forecasts for continued cold around much of the country.

The Dow industrials gained 27.46 points to 5,184.32, boosted by strong finishes in shares of Exxon, Chevron and Texaco.

“The cold weather sent oil prices higher,” said Larry Wachtel, vice president at Prudential Securities Inc. in New York. “That sent oil stocks up and really contributed to the Dow’s rise.”

Advancing issues led decliners by 10 to 9 on the New York Stock Exchange. Big Board volume totaled 342.07 million shares as of 4 p.m., vs. 327.50 million last Friday.

A mixed performance in technology shares kept the Nasdaq composite index mostly flat, closing down 0.92 at 1,061.49.

Receiving no fresh economic reports on which to trade, investors instead focused on whether the Federal Reserve would cut interest rates at its policy-making meeting on Dec. 19.

Some of the stocks that moved substantially or traded heavily:

NYSE

Maybelline, up 5-1/4 at 36-1/4.

French cosmetics giant L’Oreal SA says it will buy U.S. rival Maybelline, the nation’s third-largest maker of beauty products, in a stock and debt transaction valued at $660 million. The deal was announced Sunday.

Bristol-Myers Squibb, down 3/4 at 84.

The maker of health and personal care products said it will take a fourth-quarter restructuring charge of up to $300 million.

Chrysler, up 1 5-16 at 54.

J.P. Morgan Securities Inc. reportedly upgraded the automaker from “market performer” to “buy.”

Champion International, down 1-5/8 at 42-7/8.

International Paper, down 1/2 at 36-1/2.

Georgia Pacific, down 2-1/4 at 71.

Merrill Lynch reportedly downgraded the wood-products companies.

NASDAQ

Earth Technology, up 1 61-64 at 7 53-64.

Tyco International Ltd., an Exeter, N.H.-based company agreed to acquire Earth Technology, a Long Beach, Calif.-based designer of water and wastewater treatment facilities, for about $70 million.

NPC International, down 1-1/2 at 6-1/2.

The Pittsburg, Kan.-based company said a management group led by Chairman and Chief Executive Gene Bicknell has withdrawn its offer to acquire the company for $9 a share.

Microsoft, down 1-3/8 at 93-1/8.

The software maker and the NBC television network are discussing ways to cooperate in distributing news and other information, a source familiar with the talks told The Associated Press.

Broderbund, up 3 5-16 at 61 5-16.

Paul G. Allen, the co-founder of Microsoft Corp., said he has a 5 percent stake in the Novato, Calif.-based computer software maker.