Cheaper Fuel Prospects Push Dow To Record

The Dow Jones industrial average jumped Monday to its first record since early April as the prospect of cheaper fuel with the resumption of Iraqi oil sales reinforced optimism about steady inflation.

Broader indicators also rallied to new highs as the recent stumbles in this year’s powerful stock market rally faded further into memory.

The Dow industrials rose 61.32 to 5,748.82, leaping past its old record close at 5,689.74, set April 3. It was the first close above 5,700.

The barometer of 30 big U.S. companies has now risen for nine straight sessions, rebounding by more than 406 points, or about 7-1/2 percent, from a steep sell-off amid worries about inflation.

Stocks started off strong but started to slip by late morning with no new incentives to drive the buying.

But around midday, the United Nations announced an agreement with Iraq to let Saddam Hussein sell oil to buy food and medicine for his suffering people.

The additional supplies are expected to hit the market in a month, reducing gasoline prices.

Some stocks that moved substantially or traded heavily Thursday:

NYSE

AmeriData Technologies, up 3/8 at 15-3/4.

GE Capital Services said it will acquire AmeriData for about $490 million, increasing the scope of General Electric’s computer services business. The deal calls for GE to pay $16 in cash for each share of AmeriData, which employs 3,600 people providing computer products and technology consulting services. The company had revenues last year of $1.5 billion.

Toys R Us, up 7/8 at 30-3/4.

The toy store chain reported that its first-quarter earnings rose less than 2 percent while sales increased 10.2 percent. The profit of $18.7 million, or 7 cents per share, in the three months ended May 4 was in line with analyst expectations.

NASDAQ

Republic Industries, up 3-1/4 at 43-7/8.

Continental Waste Industries, up 2-7/8 at 16-1/4.

Continuing its acquisition spree, Republic plans to buy Continental, a solid waste management concern, in a deal valued at about $240 million. Under the agreement, Continental stockholders will exchange each of their shares for two-fifths of a Republic share.

Sterling Healthcare Group, up 1-5/8 at 20-7/8.

FPA Medical Management, a manager of doctor networks, said it will buy Sterling for about $200 million in stock. Sterling, a Florida-based manager of physician practices, said three weeks ago it was discussing a merger with other companies. Under the agreement with FPA, each Sterling common share will be exchanged for about 1.4 FPA common shares. The deal values Sterling at about $24.85 a share, based on FPA’s recent price.