In the spirit of one wag's assessment of
college baseball career -- "all field, no hit" -- today's stock-market action could be fairly called "all rallying big-caps, no volume."
It was, indeed, a real summer classic. With comforting noises emanating from Japan, a dearth of major earnings warnings and plenty of portfolio-management windows in need of dressing, stocks picked up where they left off last week and chugged higher. The broad
slid from its midday high of 1145.15, but its rise of 5.29 to 1138.49 was good enough for the measure's third new record in the last four sessions.
Dow Jones Industrial Average
, up 108.12 to 9052.66 at its 12:40 p.m. EDT height, couldn't quite stay above the 9000 mark and ended with a gain of 52.82 to 8997.36.
Procter & Gamble
led on the upside.
The high-tech side did far better at retaining its intraday gains. The
Nasdaq Composite Index
charged ahead 21.55, or 1.2%, to 1891.08; the large-cap
jumped 18.77, or 1.4%, to 1339.71; and the
Morgan Stanley High-Tech 35
rose 7.42, or 1.3%, to a record 599.75. The
Philadelphia Stock Exchange Semiconductor Index
shed 0.91 to 250.13, weighed down by
loss of 5/8 to 75 13/16.
Among other indices, the small-cap
rose 3.56, or 0.8%, to 453.83; the
Dow Jones Transportation Average
leapt 41.90, or 1.2%, to 3459.84; the
Dow Jones Utility Average
punched up 3.86, or 1.3%, to 292.46; and the
American Stock Exchange Composite Index
gained 2.94 to 720.81.
Equity volume was slack as the slide into the Independence Day break began, with breadth positive. New highs beat new lows on both major exchanges at once for the first time in weeks. On the
New York Stock Exchange
, 1,813 advancers led 1,171 decliners on 548.1 million shares. New Big Board highs topped new lows by 115 to 101.
Nasdaq Stock Market
advancers outweighed decliners by 2,254 to 1,991 on 664.5 million shares, with 118 new highs a baby's breath ahead of 117 new lows.
Philip Tasho, CEO of
Riggs Investment Management
in Washington, said he was encouraged by the selloff that brought indices such as the Nasdaq Comp and the Russell 2000 down to their 200-day moving averages by mid-June. Now, with Japan getting its house in order and many U.S. fundamentals better than ever, he has one of the Street's rosier outlooks for the rest of the year.
"I think the market is putting too much emphasis on some of the problems overseas," Tasho said. "We'll go on to new highs and be well over
Dow 10,000 by year end. I believe every area that's been depressed will come roaring back."
But Tasho expects a tortuous route to that comeback. "I think we could very well retest the lows," he said. "I expect a lot more volatility. The larger averages didn't get down to the 200-day moving average I was talking about, so they could very well go down there before the rally does ensue." That would mean visiting 8400 on the Dow and 1020 on the S&P 500.
The bellwether 30-year Treasury bond gave up 6/32 to 106 26/32, its yield rising to 5.65%. The dollar fell 0.37 to 141.78 yen.
Elsewhere in North American equities, the
Toronto Stock Exchange 300
ran up 70.71, or 1%, to 7409.37 and the
Mexican Stock Exchange IPC Index
gained 26.75 to 4184.56.
Monday's Company Report
Earnings estimates from First Call; new highs and lows on a closing basis unless otherwise specified
plunged 6 3/4, or 30.6%, to an annual low of 15 5/16 after saying late
Friday that it expects to report disappointing third-quarter earnings.
sank 4 9/16, or 22.6%, to 15 5/8 after announcing late
Friday that its second-quarter earnings will come in about half of what was previously expected.
tumbled 3 1/2, or 9.1%, to an annual low of 34 15/16 after saying it will eliminate 1,000 jobs and take a $175 million restructuring charge in its third quarter. The company expects second-quarter earnings to come in about 40% below the year-ago 63 cents per share (the six-analyst estimate called for 70 cents) and third-quarter earnings to come in about 10% below the year-ago 57 cents (analysts called for 65 cents).
dropped 1 9/16 to an annual low of 38 5/16 after
Donaldson Lufkin & Jenrette
cut it to underperform from market perform. The firm also slashed its second-quarter earnings estimate to 36 cents per share from 38 cents, its 1998 forecast to $1.60 from $1.75 and its 1999 view to $1.70 from $1.90. The 15-analyst First Call consensus calls for second-quarter earnings of 38 cents, 1998 earnings of $1.79 and 1999 earnings of $1.97. Also suffering at the hands of DLJ was
, which slipped 1 13/16 to 68 7/16 after the firm downgraded it to market perform from buy.
Mergers, acquisitions and joint ventures
shot up 2 5/8, or 40.4%, to 9 1/8 after saying it's in merger talks with an unnamed company.
jumped 15 15/16, or 33.6%, to an all-time high of 63 13/16 after saying it retained
to explore strategic alternatives, including a merger or sale.
Dawson Production Services
grew 1 15/16, or 15.7%, to 14 3/8 after
Key Energy Group
made a $180 million bid to acquire the company. Key Energy lost 5/8 to 13.
climbed 3 5/16, or 14.5%, to 26 1/4 after
agreed to buy the company for about $493 million in stock. Medtronic added 7/8 to 63 13/16.
jumped 1 5/16, or 9.5%, to an all-time high of 15 1/8 after
agreed to buy the company in a stock-and-debt deal valued at $250 million. Dan River added 1/8 to 17 7/8.
swelled 1 7/8, or 7.8%, to 26 after
agreed to acquire the company for about $460 million in stock and assumed debt. Philadelphia Suburban fell 1/16 to 20 13/16.
for $3.16 billion. Dominion advanced 3/8 to 41.
climbed 1/16 to 6 after agreeing to buy
AT&T Wireless Services'
Advanced Messaging Division for $205 million in cash and preferred stock. AT&T Wireless Services'parent,
, added 3/16 to 56 15/16.
dropped 13/16 to 56 3/8 after announcing that it will buy
international seed operations for $1.4 billion.
added 1 1/8 to 91 9/16 after announcing plans to cut a deal with
whereby Big Blue will handle the firm's key purchasing functions. IBM added 1 1/8 to 114 1/8.
leapt 3/16 to 23 5/16 after announcing that it will acquire
for $760 million.
Offerings and stock actions
sailed 9 7/8, or 13%, to 85 7/8 after setting a 2-for-1 stock split.
surged 7/8, or 34.6%, to 3 7/16 after
upped it to outperform from neutral.
Play-By-Play Toys & Novelties
stumbled 2 7/16, or 18.8%, to a 52-week low of 10 9/16 after
cut it to near-term neutral from accumulate while maintaining a long-term buy.
Laser Vision Centers
skidded 2, or 14.8%, to 11 5/8 after
SBC Warburg Dillon Read
lowered it to buy from strong buy.
lowered 5 9/16, or 10.6%, to 47 after
Morgan Stanley Dean Witter
lowered it to neutral from strong buy.
flew 2 13/16, or 6%, to 49 3/4 after Morgan Stanley Dean Witter raised it to strong buy from outperform.
advanced 2 5/16, or 5.2%, to 47 after Morgan Stanley Dean Witter raised it to strong buy from outperform.
Linens 'n Things
shot up 1 7/16, or 5%, to 30 7/16 after
increased it to strong buy from buy.
dipped 2 5/8 to 80 1/4 after
BT Alex. Brown
cut it to buy from strong buy.
vaulted 5/8 to 28 1/4 after
upgraded it to buy from attractive.
rose 1 3/8 to 36 1/8 after Piper Jaffray started coverage with a strong buy and a 18-month price target of 45.
lost 2 to 109 15/16 after the
Food and Drug Administration
said it received about 30 reports of men dying after taking
, the company's anti-impotence drug. DLJ recommended switching from Pfizer to
, which added 2 1/2 to an all-time high of 69 7/16.
looked at the call/put play resulting from the suggested switch in today's
Championship Auto Racing
sprouted 2 5/16, or 13.5%, to 19 7/16 after naming a Swiss sports marketing group its exclusive worldwide agent for the sale of all sponsorships of its open-wheel racing series until 2007.
Steel of West Virginia
slipped 1 1/8, or 12.5%, to 8 1/2 after the company reduced operating hours and laid off employees because of electricity shortages and power interruptions at power plants in the region.
jumped 7/16, or 7.8%, to 6 1/16 after announcing an agreement with France's
to settle their patent infringement suit under which Iomega will a majority stake in Nomai for $21 million.
rose 3/8 to 29 5/16 after saying it will eliminate 5,000 manufacturing jobs as part of its previously announced plans to cut 17,000 jobs and integrate its
added 9/16 to 49 after announcing a restructuring plan that, along with putting 3,800 people out of work, calls for it to spin off its semiconductor unit. The last time Rockwell restructured, a little less than two years ago, it shed its defense business to focus on the tech side of things. The company will take a $625 million charge.
raised it to buy from attractive.
lost 4 1/4 to 103 1/2 even after its
CompuServe Interactive Services
, the unit's upgraded online service software.