Stocks Rise Cautiously; Awaiting Key Reports
Stocks rose Monday, with smaller-company shares resuming their recordsetting march, as investors took an optimistic posture before today’s Federal Reserve meeting and some key economic reports due later in the week.
The Dow Jones industrial average rose 69.25 to 7,991.43. The barometer of 30 blue-chip companies, which hasn’t closed above 8,000 since Aug. 20, started the day with a 28-point deficit, but quickly turned higher.
Broader stock indicators also shrugged off some early weakness to post some sizable gains.
The Russell 2000 index of smaller companies, which had closed at record highs for eight straight sessions before slumping on Wednesday and Thursday, moved back into record territory. Other popular measures moved within striking distance of new highs.
“It’s an encouraging performance, even though the Dow has once again shied away from the 8,000 mark,” said Eugene Peroni of Janney Montgomery Scott in Philadelphia, adding that the Dow “is trending toward upper part of its (recent) range rather than showing vulnerability.”
The Dow, still about 270 points shy of its Aug. 6 peak at 8,259.31, has bobbed above 8,000 during four sessions over the past two weeks, but quickly retreated each time.
Some of the stocks that moved substantially or traded heavily Monday:
NYSE
Aetna, down 9-1/2 at 81.
The insurer warned that its third-quarter earnings will be below Wall Street projections because of higher than expected medical costs. The announcement confirmed rumors that had sent the stock sliding 9 percent last week.
Coca-Cola, up 11/16 at 62-5/8.
The Atlanta-based soft drink maker said it expects to report that worldwide unit case volume, a closely watched indicator, increased between 9 percent and 10 percent in the third quarter.
NASDAQ
Morningstar Group, up 2-5/8 at 42-5/8.
Suiza Foods (NYSE), down 2-7/16 at 51-1/2.
Dallas-based Suiza agreed to buy Dallas-based Morningstar for stock initially valued at $45.85 a share, or $784 million. The deal creates the nation’s largest dairy company.
Metricom, up 3-5/8 at 10-3/4.
Microsoft co-founder Paul Allen and his Vulcan Ventures investment group filed with the Securities and Exchange Commission to acquire about 2.58 million shares of Metricom from an existing shareholder.
Laclede Steel, up 1-7/16 at 5-3/16.
Birmingham Steel announced that it paid $14.9 million, or the equivalent of $8 a share, to Ivaco for shares and rights representing a 50.3 percent stake in Laclede. Ivaco agreed not to sell its remaining interest in Laclede until next September.