Technology Rally Propels Dow Above 5,700
Rebounding technology shares helped turn the stock market higher Wednesday, bringing the Dow Jones industrial average to its first close above 5,700 since July’s rout.
The Dow industrials rose 22.56 points to 5,718.67, its sixth gain in seven sessions, bringing it within 60 points, or less than 1 percent, of its all-time high at 5,778.00, set May 22.
On Wednesday, the leadership came from the battered computer sector, which benefited from a Merrill Lynch upgrade on a leading chip maker, Micron Technology, and an upbeat outlook in advance of a widely-watched report on monthly semiconductor sales.
“You’re seeing the technology group, which has been weak, being re-recommended,” said Steven Goldman, market strategist at Weeden & Co. of Greenwich, Conn. “This strength in the technology group is allowing the market to edge its way back to new highs.”
Advancing issues outnumbered decliners by a 13-to-9 margin on the NYSE, where volume totaled 392.47 million shares as of 4 p.m., up from the previous session.
Some of the stocks that moved substantially or traded heavily Wednesday:
NYSE
Arcadian, up 1-3/8 at 22.
Mining and mineral giant Freeport-McMoRan announced plans to acquire Arcadian in a stock deal that values the fertilizer maker at about $1 billion. As part of the deal, the public owners of Freeport-McMoRan’s 51.6 percent-owned fertilizer partnership will have an option to exchange their stakes for shares in the new company.
Pfizer, down 1-1/8 at 72-1/4.
Federal regulators say Pfizer has been making misleading claims about its popular antidepressant Zoloft, The Wall Street Journal reported.
Mikasa, up 1 at 10-5/8.
The glassware and utensils maker plans to buy back $40 million of its shares. Mikasa said it will buy back $20 million worth from investors in a Dutch auction. Mikasa also named President Raymond B. Dingman its new chief executive, replacing Chairman Alfred J. Blake.
NASDAQ
ValuJet Airlines, up 1/8 at 10-7/8.
The discount airline’s crash in the Everglades and subsequent grounding contributed to a loss of $9.6 million in the second quarter. ValuJet said its costs related to the crash, which idled the airline for the busy summer travel season, so far have totaled $31.6 million.
Comshare, down 6-7/8 at 11-5/8.
The business software maker expects its fourth-quarter results to fall short of market expectations, citing a review of its British revenues. Comshare said it began the review after discovering that certain orders included in the tally carry certain conditions.