|
Good witches stir Dow
|
 |
November 20, 1998: 10:19 a.m. ET
Stocks gain on positive view about world economy, Fed chief comments
|
NEW YORK (CNNfn) - U.S. stocks spiked higher at the open Friday, drawing strength from advancing markets overseas, a sense that Japan could be working hard to get itself out of economic recession, and reassuring comments from U.S. Federal Reserve chairman Alan Greenspan about the future of the single European currency.
At around 10 a.m. the Dow Jones industrial average was 83.42 points higher at 9,139.47. On the New York Stock Exchange, advances led declines 1,348 to 983 as 126 million shares traded. Volume was heavier than usual, largely due to the "double witching" expirations of stock futures and options.
Strong gains in markets from Tokyo to London, as well as a reassuring speech by Greenspan in Frankfurt, also contributed to the positive atmosphere among traders.
The Nasdaq Composite gained 10.65 to 1,930.33 and the S&P 500 index climbed 8.68 to 1,161.29.
The bond market traded higher, with the benchmark 30-year Treasury bond rising 13/32 of a point in price for a yield of 5.20 percent.
The dollar traded modestly higher against both the Japanese yen and the German mark.
Internet on fire
In the stock market, already overheated Internet issues continued to generate sparks as droves of investors rushed into the sector following news of strong earnings and stock splits among two of the industry's leaders.
Lighting the way, online bookseller Amazon.com (AMZN) soared 21-9/16, or more than 14 percent, to 174-13/16 after the company late Thursday announced a 3-for-1 stock split.
Following in the footsteps of Amazon, Web portal Lycos (LCOS) gained 1-7/8 to 63-7/8 after reporting its best quarter ever late Thursday with a 166 percent jump in revenue.
Elsewhere in the market, big-name technology issues also gathered steam, with shares of Intel (INTC) advancing 1/8 to 113, still boosted by a strong near-term growth outlook. Cisco Systems (CSCO) climbed 1-1/8 to 74-7/16, Microsoft (MSFT) rose 1/2 to 112-1/4, Dell Computer (DELL) gained 1 to 64-1/16 and Dow member IBM (IBM) was up 13/16 to 159-3/8.
Financial stocks also found buyers. Among the Dow components, American Express (AXP) rose 1-7/16 to 102-13/16, Citigroup (CCI) gained 1 to 45-7/16, and J.P. Morgan (JPM) was up 1-7/8 to 108-1/4. 
-- by staff writer Malina Poshtova Zang
|
|
|
|
|
 |
|
