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Stocks stage solid recovery
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October 28, 1997: 11:42 a.m. ET
Markets, putting Monday's record losses behind, climb into positive land
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NEW YORK (CNNfn) - Buying was back with a vengeance in U.S. stock markets at midday Tuesday.
A day after posting record losses and hours after plunging again, the Dow and other key stock market indexes were back into positive territory, climbing steadily up.
At 11:30 a.m. the Dow Jones industrial average was up 113.45 at 7,274.60, after losing 554 points Monday and trading as low as 6,975.49 earlier on Tuesday.
On the New York Stock Exchange, declines still led advances 2,339 to 696.
The blue-chip index pulled broader markets up with it, with the Nasdaq gaining 18.27 to 1,553.36 and the S&P 500 up 10.09 to 887.07.
The market had sold off earlier after a global meltdown that started with Hong Kong's Hang Seng index losing 13.7 percent to 9,059. Japanese and European stocks followed on the downside and Wall Street was not far behind.
But the bulls outweighed the bears in New York and after only an hour of trading, stocks bounced back as strong economic fundamentals appeared to bring back investor confidence in the market.
To some, Tuesday's gains were a sign that the worst may be over for the market -- for now.
"This is a selling climax. You can't tell a selling climax is over unless you get a short temporary rally," said Phil Roth, chief technical analyst at Morgan Stanley Dean Witter.
Smaller indexes also recovered, with the Dow transports up 4.97 to 3,009.55.
Market sectors that had been hit in the sell-off bounced back, with technology, financial, drug and international companies all posting gains.
Among leaders, Intel (INTC) was up 4-15/16 to 79-11/16. Other technology stocks gained too, with Microsoft (MSFT) up 1-7/8 to 130-3/4, and Dell (DELL) up 6-3/8 to 88-3/8.
On the NYSE, Compaq (CPQ) was up 4-1/2 to 65, and IBM (IBM) was up 6-1/16 to 96-1/16.
Among large multinational companies, giant soft drink maker Coca-Cola (KO) was up 2-7/16 to 56.
In drug stocks, Eli Lilly (LLY) was up 4 to 66-1/2 and Merck (MRK) was up 1-7/8 to 87-3/8.
--by staff writer Malina Poshtova Zang
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