Markets & Stocks
Dow eclipses 6,000
October 14, 1996: 8:36 p.m. ET

New milestone highlights most stunning bull run ever
graphic graphic
NEW YORK (CNNfn) -- Traders on Wall Street may have felt a little light-headed Monday -- because of the altitude.
     After failing twice before, the Dow Jones industrial average finally scaled the 6,000-point mountain, reaching its third major psychological milestone in less than two years.
     With investors confident that the economy is strong and inflation under control, the famed barometer extended a rally that began last week, closing up 40.62 points to 6,010.00.
     Twice in the last week the Dow pierced the 6,000-mark only to retreat each time under a late wave of profit-taking. The feat is another highlight in the most spectacular bull run ever on Wall Street. In less than two years, the bellwether measure has risen 2,000 points. It crossed the 4,000 line on Feb. 23, 1995, and nine months later, Nov. 21, it moved past 5,000.
     Dow chart
     The current rally began Friday on news that the Producer Price Index rose only 0.2 percent in September -- a sign that inflation remained tame at the wholesale level.
     Many traders, however, stayed away from Wall Street on Monday because the bond market was closed due to the holiday. But with the Dow leading the way, the broader markets also established two new highs. The S&P 500 picked up 2.88 points to 703.54, while the Nasdaq Composite rose 8.09 points to 1,256.36.
     New York Stock Exchange advances led declines, 1,212 to 1,074, with more than 325 million shares changing hands. Only the American Stock Exchange index ignored the festive mood, dipping 1.08 points to 579.33.
     Stocks in the news: Chrysler (C), gained 1 to 32-3/4 on a stronger-than-expected 92 percent jump in earnings.
     Shares of Archer Daniels Midland (ADM) rose 1-1/8 to 21-3/4 after the company announced it will plead guilty to two counts of price-fixing and pay $100 million in fines as part of a settlement with the Justice Department. The deal comes four years after prosecutors began their probe of the leading agricultural products company.
     Oil stocks strengthened amid fears of a tightening supply. Texaco (TX) jumped 3-5/8 to 101-3/4; Exxon (XON) gained 1-1/4 to 87-5/8; Chevron (CHV) added 1-1/4 to 66-7/8; and Mobil (MOB) climbed 1-3/8 to 118-1/2.
     On the merger front, Enova (ENA), the parent of San Diego Gas and Electric, is merging with Pacific Enterprises (PET), the parent of Southern California Gas. The combined company will be worth $5.2 billion and serve six million customers -- more than any other investor-owned utility. Shares in Enova slipped 1/8 to 22-3/8, while Pacific's stock rose 3/4 to 32-1/4.
     On the downside, a warning from Albertson's (ABS) that earnings will fall short of expectations sent shares reeling 6-1/2 to 36-1/8. The company blamed weak sales and higher costs for the disappointing development.
     Rite Aid (RAD) fell 1-1/2 to 34-3/8 after saying it will buy rival Thrifty PayLess for $2.3 billion in stock and debt. Rite Aid also said it will sell 200 drug stores in South Carolina and North Carolina to J.C. Penney. Thrifty (TPD) shares jumped 3 to 21-3/8, while shares in J.C. Penney (JCP) remained unchanged at 54-1/4.
     Intel (INTC) gained 2 to 107-3/8 as investors await the release of the company's latest earnings, while biotech firm Advanced Tissue Sciences (ATIS) rose 2-1/2 to 20 after saying its will ask the Food and Drug Administration to approve for approval of its drug used for treatment of diabetes.Back to top


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