Tech Stocks Lead Dow To Record

Stock market records fell Monday as investors turned their attention away from interest rates and economic reports and focused on downtrodden business sectors where bargains could be unearthed.

They found them among high tech, drug and energy issues, which rose briskly.

The Dow Jones industrial average gained 78.50 points to close at 7,079.39, beating the previous record of 7,067.46 set on Feb. 18.

The New York Stock Exchange composite index rose 3.87 to 427.70, besting the Feb. 18 record of 427.07.

“Whether or not it’s correct, the market is moving to the sidelines the issue of a Fed tightening” of interest rates at its policy-setting meeting in two weeks, said William Dodge of Marvin & Palmer Associates Inc.

The central bank’s Federal Open Market Committee meets on March 25, but economists increasingly suggest that, with no overt signs of inflation in the economy, the committee probably won’t raise interest rates.

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

NYSE

Office Depot Inc., down 5-1/2 to 17-1/8.

Staples Inc., down 1-5/16 to 23-1/4.

The Federal Trade Commission voted to block Staples from buying Office Depot, which would have combined the two largest office supply retailers. The agency said the combined firm would be able to to control prices for the sale of office supplies in various cities.

Newmont Mining Corp. down 1-1/8 to 43.

Santa Fe Pacific Gold Corp., up 1/2 to 17-7/8.

Homestake Mining Co., up 1 to 16.

Denver-based Newmont won a hostile effort to buy Santa Fe Pacific Gold for $2.5 billion in stock, to create North America’s biggest gold producer. The deal broke up a friendly combination between Albuquerque-based Santa Fe and San Francisco-based Homestake.

NASDAQ

Netscape Communications Corp., up 3-1/8 to 29-5/8.

The Mountain View, Calif. maker of Internet software unveiled a new application called Crosswares that allows companies to use the Internet to communicate securely with each other.

Oregon Metallurgical Corp., down 5 to 21-1/8.

The Albany, Ore.-based maker of specialized metal parts for aircraft, cars, medical devices, and sporting gear predicted declining sales to golf club head producers. Merrill Lynch lowered the stock to near-term accumulate from buy.