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Saturday, May 30, 2020  Spokane, Washington  Est. May 19, 1883
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News >  Nation/World

Dow Erases Early Deficit, Climbs To New High

By Associated Press

The Dow Jones industrial average set its fifth record of the past six sessions Tuesday and surpassed its gain for all of 1996 as interest rates fell to another low for the year in the bond market.

The Dow erased an early 29-point deficit and rose 53.42 to 8,174.53. Its 26.8 percent gain so far this year eclipsed the 26 percent rise for all of last year.

Broader stock measures also set new highs, overcoming a wary response to some market-friendly data released Tuesday morning.

Stocks sagged at the open with the bond market, where interest rates edged higher despite a government report saying wages and benefits - the biggest force behind inflation - rose just 0.8 percent in the April-June quarter.

“The numbers still reflect decent strength in the economy and relatively benign wage-cost pressures. Those are the magic ingredients for the bond market and the stock market,” said William Dodge, portfolio manager at Marvin & Palmer Associates of Wilmington, Del.

Advancing issues outnumbered decliners by a 3-to-2 margin on the New York Stock Exchange, where volume was heavy at 544.54 million shares as of 4 p.m. up from Monday’s pace.

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

NYSE

Citicorp, up 6-7/16 at 130-9/16.

Merrill Lynch analyst Judah Kraushaar raised his near-term rating of Citicorp to “buy” from “accumulate,” the Dow Jones News Service reported, citing a contact at the securities firm.

National Semiconductor, down 2 at 31.

Cyrix (Nasdaq), up 1-7/8 at 24-15/16.

National Semiconductor agreed to buy the rival chip maker Cyrix for stock initially valued at about $550 million.

Gateway 2000, down 1-11/16 at 38-1/8.

The computer maker’s president and chief operating officer, Richard D. Snyder, resigned Monday to head a private venture capital fund. Separately, Smith Barney downgraded its rating on Gateway, the Dow Jones News Service reported.

NASDAQ

Interactive Flight Technologies, down 1-29/32 at 3-29/32.

Qantas Airways has decided not to install the Phoenix-based company’s new in-flight entertainment system for the Australian airline’s long-haul fleet.

AEP Industries, down 7-1/8 at 26.

The maker of plastic packaging products cautioned late Monday that profits for its third quarter ending July 31 will only be level with the prior quarter’s results.

Tegal, down 2-1/4 at 7-1/4.

The maker of semiconductor manufacturing equipment reported weak first-quarter earnings. Tegal said it expects losses for the rest of the fiscal year due to the continued softness in demand.

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