|
Dow dances to Brazil's lead
|
 |
November 13, 1998: 5:51 p.m. ET
Blue-chips head higher on IMF deal, hints of Iraq détente; banks gain, Dell slumps
|
NEW YORK (CNNfn) - Inspired by an international aid package for Brazil, U.S. blue-chip stocks shot upward Friday, ending an otherwise lackluster market week on a high note.
The Dow Jones industrial average ended up 89.85 points at 8919.59. On the New York Stock Exchange, market breath was neutral as declining issues edged out advances by only two, on trading volume of 608 million shares.
For the week, the Dow fell 55.87 points. The blue-chip index is up 12.8 percent for the year.
The Nasdaq Composite dropped 3.07 points to 1847.99 on weakness in Internet issues and bellwether PC seller Dell Computer (DELL). The broader S&P 500 index rose 7.55 and points to 1125.72.
The Nasdaq finished the week down 8.58 points and now holds a gain of 17.7 percent for the year. The S&P 500 index lost 15.29 points this week, trimming its gain for the year to 16 percent.
Banking stocks were among the league leaders on the NYSE. Oil and transportation stocks also gained, while high-tech shares and Internet issues drifted lower.
Financial stocks got their boost in part after major industrialized nations and the International Monetary Fund announced a long-sought $41 billion loan deal for Brazil, a key U.S. trading partner and a top emerging market. The plan aims to help prevent worldwide market turmoil from pulling under South America's largest economy.
Greg Smith, chief equity strategist at Prudential Securities, said he is optimistic about concerted efforts to buck up many of the world's rattled markets. (220K WAV) or (220K AIFF)
Wall Street also brightened to the possibility that an 11th-hour deal could avert what many observers saw as near-certain military strikes by the United States against Iraq for its non-compliance with a U.N. pact on weapons inspections.
The bond market eased following reports showing a faster-than-expected climb in retail sales and producer prices in October. The 30-year Treasury issue was down 2/32 in price for a yield of 5.25 percent.
The dollar climbed against the Japanese yen amid doubts about an economic stimulus and tax reform package in Japan. The greenback dropped against the German mark.
On tap for next week, the Federal Reserve will meet Tuesday to discuss whether to cut short-term interest rates. Many analysts, only a few weeks ago nearly certain a cut was on the way, have since pared back their views.
Bank stocks get another jolt
That Federal Open Market Committee meeting will be a key focus for banks next week. But on Friday the sector was ebullient after the Brazil accord was announced.
Banks had been on an roll since the Fed surprised markets last month with a quarter-point cut in two key interest rates.
Ending higher were Dow components Citigroup (CCI), up 1-7/16 to 43-3/8, American Express (AXP) up 2-3/16 to 94-9/16 and J.P. Morgan (JPM) rising 3-1/4 to 101-7/8. Chase Manhattan (CMB) rose 2-1/16 to 57-3/16
In the high-tech arena, Dell lost 5-1/4 to 63-15/16 even though the bellwether PC vendor reporting late Thursday third-quarter earnings of 28 cents a share, a penny better than the analysts' expectations as reported by First Call.
Elsewhere, Microsoft (MSFT) ended up 1-1/4 to 110 and Intel (INTC) climbed 1-1/16 to 103-3/4.
(Click here for a look at today's CNNfn market movers)
(Click here for a look at today's CNNfn tech stock report)
-- by staff writer Jamey Keaten
|
|
|
|
|
 |
|
