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Wall Street leaps ahead
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October 20, 1999: 4:59 p.m. ET
Strong technology, financial earnings reports power broad market rally
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NEW YORK (CNNfn) - A broad rally lifted U.S. stock markets Wednesday, powered by a series of stronger-than-expected corporate earnings reports, led by bellwether companies like Microsoft and Chase Manhattan.
The Dow Jones industrial average rallied 187.43 points, or 1.8 percent, to 10,392.36. On the New York Stock Exchange, gainers finished ahead of losers by 1,650 to 1,364 as trading volume reached 920 million shares.
The Nasdaq composite index, boosted by a surge in Microsoft and other high-tech blue chips, surged 99.87 points, or 3.7 percent, to 2,788.05, its third largest one-day point gain in history. The S&P 500 index advanced 28.11, or 2.2 percent, to 1,289.43.
Bond prices were narrowly mixed following news that the trade deficit shrank more than had been expected, to $24.1 billion in August. The benchmark 30-year Treasury bond rose 7/32 of a point in price for a yield of 6.33 percent, down slightly from Tuesday's 6.35 percent.
The dollar rose against both the yen and the euro, drawing strength from the stock market's gains.
Microsoft powers high-tech rally
Investors' enthusiasm about the technology sector returned with a vengeance Wednesday. It was rekindled by the software leader Microsoft (MSFT), which reported fiscal first-quarter earnings late Tuesday that crushed estimates as demand for the company's high-margin corporate software continued to sizzle.
Moreover, Microsoft made the unusual step of guiding analysts to raise their profit projections for the following quarter, basing its optimism on strong seasonal and Y2K-related demand for its products.
Shares of the world's largest software publisher rallied 5-15/16 to 92-1/4.
Microsoft's good fortune helped lift other technology bellwethers as well, including Dell Computer (DELL), which Tuesday roiled the market after it issued a profit warning. Shares of the made-to-order PC company gained 1-1/2 to 40 and rival Gateway (GTW) advanced 4 to 50-7/8.
Elsewhere in the tech sector, Intel (INTC) rose 4-13/16 to 69-15/16 and Cisco Systems (CSCO) ended the day up 2-9/16 to 69-15/16.
On the Dow, IBM (IBM) gained 7/8 to 108 in regular trading hours as investors prepared to hear its latest earnings results, released after the closing bell. Minutes after the market session ended, Big Blue said it earned 90 cents a share in the third quarter, excluding a special gain. The results matched Wall Street consensus estimates. IBM shares were halted for after-hours trading.
Hewlett Packard (HWP) rose 2-13/16 to 76-9/16.
Also releasing its latest results after the closing bell, America Online (AOL) climbed 2-3/4 to 118 during regular hours. The stock was halted for after-hours trading after the world's leading online service provider said it earned 15 cents a share in its fiscal first-quarter, 2 cents more than the market had bet on.
Computer Associates (CA) also rallied 3-3/4 to 58-1/4 after reporting quarterly results that beat Wall Street projections.
Outside the technology sector, a solid bottom line helped lift shares of Chase Manhattan (CMB) after it became the latest banking giant to report a stronger-than-anticipated third-quarter profit. Shares of the company rose 4-11/16 to 75-13/16.
Among the Dow components, shares of DuPont (DD) dropped 1-9/16 to 61-7/8 even after the chemicals conglomerate reported third-quarter results that exceeded expectations.
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(Click here for a look at today's CNNfn technology stocks report.)
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