Momentum Propels Dow To Another Record

Stocks rose modestly Wednesday, lifting some measures to new highs, as Alan Greenspan again chose not to play spoiler to the market’s upbeat outlook on inflation and interest rates

The Dow Jones industrial average rose 26.71 to 8,088.36, padding Tuesday’s record close. The blue-chip barometer started the day with an 81-point gain, breaking through the 8,100-point barrier for the first time, but quickly succumbed to a round of profit-taking. It briefly dipped into negative territory before turning higher again.

Broad-market indicators also pushed higher after retreating from what initially looked to be a continuation of Tuesday afternoon’s rally.

“The market’s path of least resistance is still higher, but it was a more thoughtful, critical (advance) than yesterday’s unanimous celebration of what (Greenspan) was saying,” said Richard E. Cripps, chief market strategist for Legg Mason of Baltimore.

Stocks also drew a boost Wednesday from more encouraging reports on second-quarter earnings.

Advancing issues outnumbered decliners by a 3-to-2 margin on the New York Stock Exchange, with 1,732 up, 1,169 down and 531 unchanged.

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

NYSE

Boeing, up 2-11/16 at 59-1/16.

The European Union endorsed the main points of Boeing’s $15 billion deal to merge with McDonnell Douglas, but delayed formal approval until next week.

Bay Networks, up 2-5/8 at 31-7/8.

Several brokerages upgraded their ratings on Bay after the computer networking company posted better-than-expected results for its fourth quarter ended June 30.

Computer Associates, up 5-1/4 at 69-9/16.

The software maker’s profits improved a better-than-than expected 30 percent for its first quarter ended June 30. Computer Associates cited strong sales of its programs for running business computer networks.

Columbia/HCA Healthcare, up 3-1/4 at 36-5/16.

Tenet, up 2-3/4 at 30-1/4.

Columbia/HCA, in the midst of a federal Medicare fraud inquiry, is talking with Tenet about a possible merger that would join the nation’s two biggest for-profit hospital chains, The Wall Street Journal reported.

NASDAQ

Netscape Communications, down 4-7/8 at 39-5/8.

The maker of software for browsing the Internet met expectations for its second-quarter results, reporting a loss of $43.8 million due to costs connected with two acquisitions.

ParkerVision, up 4-3/4 at 23-1/4.

IBM agreed to use ParkerVision’s wireless technology to make wireless personal computer peripheral products.