Dow Hits New High With Big Day
The Dow Jones industrial average plowed to another new high Monday, outpacing broader stock measures as investors remained cautiously optimistic about the outlook for inflation and interest rates.
The Dow rose 123.22 to 7,292.75, with IBM and Hewlett-Packard leading the charge past last Tuesday’s record close of 7,225.32. The barometer of 30 blue-chip companies, which sat about 900 points lower just a month ago, briefly moved within 4 points of 7,300 during the afternoon.
The Standard & Poor’s 500 and the New York Stock Exchange composite index set new highs as well, also benefiting from the day’s emphasis on the perceived safety of the biggest and best-known names.
Stocks drew some minor support from the bond market, where yields on some longer-term issues fell slightly although the yield on the benchmark 30-year bond ended unchanged.
There were no major economic reports to counter recent indications that the economy’s vigorous pace is easing enough to keep pricing pressures under control.
Some of the stocks that moved substantially or traded heavily Monday:
NYSE
Grand Metropolitan, up 4-3/4 at 38-7/8.
The owner of Burger King and Pillsbury foods plans to merge with brewer Guinness PLC, creating a company that would rank as the world’s seventh-largest food and drink seller.
Smith’s Food & Drug Centers, up 3-3/4 at 43-3/4.
Fred Meyer Inc. agreed to acquire Smith’s for stock valued at $720 million and $1.3 billion in assumed debt, creating a western retailing powerhouse.
NASDAQ
Citrix Systems, up 13-3/8 at 32-5/8.
American United Global, up 2-1/8 at 6.
Microsoft agreed to license a multiuser technology from Citrix and France’s Prologue SA. In February, Citrix’s shares plunged after Microsoft said it might develop its own version of the technology, which enables terminals hooked to a server to run most personal computer programs. Prologue’s technology is included in products made by American United.
AutoImmune, down 1-7/8 at 2-9/16.
The biopharmaceutical company announced disappointing results from clinical tests of Colloral, its rheumatoid arthritis drug. AutoImmune, based in Lexington, Mass., said it believes the drug has therapeutic benefit but may require further development.