clarinews@clarinet.com (JANICE KIRKEL, UPI Business Writer) (01/17/90)
NEW YORK (UPI) -- Stocks closed higher Tuesday in active trading, with the blue chips up sharply, boosted by a rally in technology issues and bargain hunting by institutions. The Dow Jones industrial average, which fell 19.84 Monday, rose 23.25 to 2692.62, after being down as much as 28 points in early trading. Broader market indicators kept pace with the Dow industrials. The New York Stock Exchange composite index rose 1.66 to 188.37. Standard & Poor's 500-stock index rose 3.75 to 340.75. The price of an average share gained 32 cents. Advances edged declines, 800 to 710, among the 1,971 issues crossing the NYSE tape. Losers had led by as much as 5 to 1 in early trading. Big Board volume totaled 186,070,000 shares compared with the 140,590,000 shares traded Monday, the Martin Luther King, Jr., holiday, when banks and government offices were closed. Analysts said bargain hunting by institutions after the market's plunge last week as well as a rally in the technology sector pushed the market into the plus column. Bolstering computer stocks were surprisingly strong earnings reports from Intel Corp. Tuesday and NCR Corp. Monday, they said. ``Institutions took the opportunity to buy on weakness,'' said Peter Vandenberg, vice president of equity trading at Shearson Lehman Hutton Inc. ``And there's been buying in the technology sector. IBM's earnings are supposed to come out soon and they're supposed to be okay,'' he said. Just before midday, a round of computerized program buying, used to profit on price differences between stocks and stock index futures, boosted prices from sharply lower levels, analysts said. The Dow industrials had been down as much as 28 points, having fallen from the opening on a plunge in the Tokyo market overnight and weakness in the bond market. On the trading floor, Philip Morris was the most active NYSE issue, up 1 1/4 to 39 3/8. Citicorp was second, down 1/2 to 26. Aristech Chemical was third, up 5 1/2 to 24 5/8. Volume of NYSE-listed issues, including trades in stocks on regional exchanges and in the over-the-counter market, totaled 217,797,910 shares, up from 168,125,080 shares traded in the previous session. Prices closed lower in active trading on the American Stock Exchange. The Amex Market Value index closed off 0.17 to 368.41. The price of an average share lost 1 cent. Declines led advances, 337 to 240, among the 821 issues traded. Composite volume totaled 17,873,000 shares, compared with 15,396,480 shares traded Friday. Kingdom of Denmark ``put'' warrants on the Nikkei index, which effectively function as bets that the Tokyo stock market will fall, led the Amex issues, off 1/2 to 5 3/8. The National Association of Securities Dealers composite index rose 3.52 to close at 440.16.
clarinews@clarinet.com (JANICE KIRKEL, UPI Business Writer) (01/18/90)
NEW YORK (UPI) -- The stock market closed sharply lower Wednesday in active trading, battered by late waves of computerized program selling and earnings disappointments from Alcoa and International Business Machines Corp. The Dow Jones industrial average, which rose 23.25 Tuesday, tumbled 33.49 to 2659.13. Among broader market gauges, the New York Stock Exchange composite index fell 1.51 to 186.86 and Standard & Poor's 500-stock index lost 3.35 to 337.40. The price of an average share dropped 29 cents. Declines led advances, 866 to 636, among the 1,967 issues crossing the NYSE tape. Big Board volume totaled 170,470,000 shares, compared with 186,070,000 shares traded Tuesday. Analysts attributed the sharp drop to several bouts of computerized program selling in the last hour of trading. The technique is used to profit on brief price differences between stocks and stock index futures. ``The market has again been captured by them,'' said Gene Seagle, technical research director at Gruntal and Co., of the computer programs which dictate selling. Analysts said news that Alcoa's quarterly earnings were sharply lower, and below expectations, started the market off on its afternoon decline and returned Wall Street's focus to fourth-quarter earnings reports. The stock is not only a component of the Dow industrials but of other major market indexes. Prices fell in early trading after a disappointing earnings report from International Business Machines Corp., which showed profits below analysts' already-lowered expectations. The bellwether Dow component reported earnings fell to $1.04 a share from $3.97 a year earlier, but the 1989 quarter included a $2.4 billion restructuring charge. Some midday bargain hunting pushed the blue chips into the plus column, though, before prices declined again. Dennis Jarrett, chief market strategist at Kidder, Peabody and Co., noted that the blue chips fared far worse than the broad market. ``There were not morethan 1,000 declines so (the broad market) was not hit nearly as bad as the Dow,'' he said. ``There's also a lot of apathy in the market. No one wants to be too adventuresome with bargain hunting,'' said Jarrett, referring to the Dow's brief trip into positive territory before the upward momentum fizzled and prices turned lower again. On the trading floor, Aristech Chemical was the most active NYSE issue, up 1/2 to 25 1/8. Citicorp was second, up 3/8 to 26 3/8. Varity was third, up 1/8 to 3. Volume of NYSE-listed issues, including trades in stocks on regional exchanges and in the over-the-counter market, totaled 202,032,740 shares, compared with 217,797,910 shares traded in the previous session. Prices closed slightly lower in active trading on the American Stock Exchange. The Amex Market Value index fell 0.35 to close at 368.06. The price of an average share lost 1 cent. Declines led advances, 282 to 258, among the 807 issues traded. Composite volume totaled 18,554,800 shares, compared with 17,873,000 traded Tuesday. Salomon ``put'' warrants on the Nikkei index, which effectively function as bets that the Tokyo stock market will fall, led the Amex issues, closing at 4 1/4 on their first trading day. The National Association of Securities Dealers composite index fell 1.48 to 438.68.
clarinews@clarinet.com (JANICE KIRKEL, UPI Business Writer) (01/19/90)
NEW YORK (UPI) -- Stocks closed mixed Thursday as the blue chips mustered a late technical rebound after Wednesday's sharp drop, but the broad market remained under the thumb of gloomy earnings reports. The Dow Jones industrial average, which sank 33.49 Wednesday, rose 7.25 to close at 2666.38 after having been down 25 points before noon. Among broader market gauges, the New York Stock Exchange composite index closed up 0.21 to 187.07 and Standard & Poor's 500-stock index rose 0.79 to 338.19. The price of an average NYSE share gained 4 cents. Declines led advances, 879 to 589, among the 1,970 issues crossing the NYSE tape, but the margin had narrowed from about 3 to 1 in early trading. Big Board volume totaled 178,590,000 shares, compared with 170,470,000 shares traded Wednesday. Analysts said fading hopes for an interest rate cut and disappointing earnings at Digital Equipment continued to pressure prices, despite the slight bounce in the blue chips. Digital early Thursday reported earnings of $1.25 a share for the December quarter, below analysts' expectations. The stock closed with a loss of almost $6 a share. Analysts said the news, coming on the heels of lackluster reports Wednesday from International Business Machines Corp. and Alcoa, sparked selling. ``When anything negative happens, this market uses it as an excuse to go down,'' said Tom Gallagher, managing director in charge of capital commitment at Oppenheimer and Co. ``People say, `If their earnings are bad, why not everybody else's?' Anything could get people to sell stocks in an environment like this.'' Analysts also said investors' hopes for lower interest rates received a blow from a report in Thursday's Wall Street Journal saying that two Federal Reserve governors have indicated they probably will not favor cutting rates now. The market had hoped for such a move to offset weak earnings reports, they said. ``What you got today is a battle between the negative fundamentals of poor earnings and a weak bond market (depressed by the unfavorable rate outlook) and a stock market that is terribly oversold on a technical basis,'' said Newton Zinder, market analyst at Shearson Lehman Hutton Inc. ``This was a technical rally.'' On the trading floor, Harcourt Brace Jovanovich was the most active NYSE issue, off 1/8 to 2 7/8. Citicorp was second, up 1/8 to 26 1/2. Harcourt Brace preferred was third, down 1/4 to 2 3/4. Volume of NYSE-listed issues, including trades in stocks on regional exchanges and in the over-the-counter market, totaled 210,008,750 shares, compared with 202,032,740 shares traded in the previous session. Prices closed lower in moderately active trading on the American Stock Exchange. The Amex Market Value index lost 1.89 to close at 366.17. The price of an average share lost 7 cents. Declines led advances, 346 to 216, among the 801 issues traded. Composite volume totaled 15,058,300 shares, compared with 18,554,800 traded Wednesday. Kingdom of Denmark ``put'' warrants on the Nikkei index, which effectively function as bets that the Tokyo stock market will fall, led the Amex issues, off 1/4 to 5 3/8. The National Association of Securities Dealers composite index closed down 1.16 at 437.52.
clarinews@clarinet.com (JANICE KIRKEL, UPI Business Writer) (02/01/90)
NEW YORK (UPI) -- The stock market ended January the same way it began the month, as a break from the recent jump in interest rates fueled the market's biggest rally since its surge to record highs Jan. 2. The Dow Jones industrial average, which fell 10.14 Tuesday, its fifth straight decline, surged 47.30 to close at 2590.54, its sharpest rise since a 56-point burst Jan. 2 to a new all-time high. Among broader market gauges, the New York Stock Exchange composite index rose 3.07 to 181.50 and Standard & Poor's 500-stock index gained 6.08 to 329.06. The price of an average share jumped 57 cents. Advances pounded declines, 1,111 to 446, among the 1,966 issues crossing the NYSE tape. Big Board volume totaled 189,660,000 shares, compared with 186,030,000 shares traded Tuesday. The rally was fueled by a rebound in bond prices after their steep January declines. Especially heartening to investors was that bonds gained despite a government report early Wednesday that the index of leading economic indicators, a gauge of future economic activity, rose 0.8 percent in December. Economists had expected the index to rise only 0.5 percent. Analysts said Treasury bonds, which were lower, dipped slightly on the news but then turned higher at midmorning. In late trading, long-term issues were up as much as 1 1/8 points. They said the bond market's firm reaction to a stronger-than-expected economic report, which would normally be bearish for bonds, may be a signal that interest rates have seen their highs for now. ``The bond market's behavior in managing a stronger-than-expected number was positive,'' said Hugh Johnson, chief economist at First Albany Corp. in Albany, N.Y. ``It suggests the (bond) market might be reaching a level where it's turning. Stock folks saw this and I think that was the catalyst for the gains. This was great to see, a good sign, an encouraging sign.'' On the trading floor, Occidental Petroleum was the most active NYSE issue, unchanged at 26 5/8. Bank of New England was second, up 1/4 to 4 7/8. AT&T was third, up 1 1/4 to 39. Volume of NYSE-listed issues, including trades in stocks on regional exchanges and in the over-the-counter market, totaled 221,763,750 shares, compared with 215,386,740 shares traded in the previous session. Prices closed sharply higher in moderately active trading on the American Stock Exchange. The Amex Market Value index rose 4.57 to close at 350.07. The price of an average share gained 17 cents. Advances led declines, 320 to 258, among the 817 issues traded. Composite volume totaled 15,553,100 shares, compared with 19,383,100 traded Tuesday. Hillhaven led the Amex issues, unchanged at 1 7/8. The National Association of Securities Dealers composite index gained 5.09 to 415.81.