A late surge carried the Dow Jones industrial average within 25 points of the 8,000 mark Tuesday, and the Nasdaq rally continued after another strong profit report from a leading technology name.
The Dow rose 52.73 to 7,975.71, erasing a 44-point afternoon deficit to beat last Tuesday’s record finish of 7,962.31.
The Nasdaq composite index closed at a record high for the ninth consecutive session as bellwether technology shares surged again after a stronger-than-expected second-quarter showing by Texas Instruments.
Despite the day-long strength in technology shares, stocks were mostly lower until midafternoon, when interest rates eased in the bond market after a report alleviating mild concerns that consumer activity was reaccelerating at an inflationary pace.
“I would have thought (investors) would wait until after earnings reporting season to see what happens and react accordingly. But it’s off to the races again,” said Robert Streed, senior investment adviser at Northern Trust in Chicago. “The stock market has a positive bias.”
Advancing issues outnumbered decliners by a 10-to-9 margin on the New York Stock Exchange, where volume was very heavy at 598.40 million shares as of 4 p.m., up sharply from 485.86 million in the previous session.
Some of the stocks that moved substantially or traded heavily Tuesday:
Texas Instruments, up 12 at 109-1/2.
Intel (Nasdaq), up 2-5/32 at 80-29/32.
TI posted second-quarter results that beat analysts expectations for the semiconductor company. Intel, the world’s biggest chip maker, exceeded expectations by a small margin with its earnings report after the close.
Chase Manhattan, up 9/16 at 102-9/16.
Citicorp, down 3-1/8 at 125-3/8.
The nation’s two largest banks reported strong second-quarter results despite disappointments in their credit card businesses. Chase Manhattan’s operating earnings rose 12 percent, beating analyst forecasts, while Citicorp’s 8 percent improvement fell in line with expectations.
Aviron, up 6-7/8 at 24.
The biopharmaceutical company said its flu vaccine showed a 93 percent protection rate in children during a study by the National Institute of Health.
Advanced Technology Labs, down 5-7/8 at 36-3/4.
The maker of diagnostic ultrasound equipment cautioned that it will post an unexpected loss for the third quarter.
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