Bond Rally Lifts Stocks To 44.44-Point Gain

Stocks snapped higher with bonds Tuesday as depressed technology issues and blue chips regained their footing in advance of key earnings reports that had investors on edge.

The Dow Jones industrial average rose 44.44 points to finish at 5,088.22. Most broad-market indexes also finished higher.

The bond market took off late in the trading day with the 30-year Treasury bond adding more than 1 point, and stocks quickly followed suit as investors moved to cover short positions to avoid being left behind.

“One trigger was a turnaround in the bond market, which may have come out of renewed speculation about progress on the federal budget,” said A. Marshall Acuff Jr., market strategist at Smith Barney.

Talks in the stalemate between the White House and Congressional Republicans are expected to resume today.

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

NYSE

Citicorp, up 4-3/4 at 68-1/4.

Chase Manhattan, up 3-7/8 at 60-7/8.

Chemical, up 3-3/8 at 58-1/2.

NationsBank, up 1/2 at 66-1/8.

Banking stocks moved higher as Chemical and Chase Manhattan, poised to merge into the nation’s largest bank, both reported improved earnings for 1995’s final quarter. NationsBank turned in improved results, but failed to meet expectations.

Boeing, down 1 at 76.

McDonnell Douglas, up 1/8 at 92-1/8.

The Wall Street Journal reported that the two aerospace companies have halted their exploratory merger talks. The companies each declined comment.

Glaxo Wellcome, up 5/8 at 27-7/8.

The Supreme Court, rejecting an appeal by two generic drug manufacturers, let stand a ruling that said Glaxo Wellcome is entitled to five patents for AZT, the primary drug for treating AIDS.

NASDAQ

Intel, up 2-2/8 at 55-3/4.

Sun Microsystems, up 4 at 41-7/8.

The two semiconductor stocks rebounded slightly from heavy declines last week and Monday in advance of their earnings reports. After the market closed, Intel said it earned 98 cents a share in the last quarter of 1995, below Wall Street estimates of about $1.10. Sun said its profit grew 54 percent, exceeding analyst projections.

AMEX

Hawaiian Airlines, up 5/16 at 3-1/16.

The carrier’s four unions have ratified contract changes that will allow the airliner to pursue a $20 million investment offer to continue operating.