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Stocks walk on the up side
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March 29, 1999: 11:49 a.m. ET
Big technology reasserts leadership while oil merger fuels buying fervor
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NEW YORK (CNNfn) - Talk of a major oil merger and renewed bullish direction from the high-tech sector helped investors surrender to optimism Monday, pushing the Dow industrials back up within striking range of the elusive 10,000-point level.
Shortly before 11:30 a.m. ET, the Dow Jones industrial average surged 162.34 points, nearly 1.7 percent, to 9,984.58. Advances broadly outpaced declines on the New York Stock Exchange by a margin of 1,823 to 857, while trading volume was a robust 266 million shares.
The technology-heavy Nasdaq Composite enjoyed even headier gains, climbing 49.82 points, more than 2 percent, to 2,468.99. The S&P 500 index jumped 24.41 to 1,307.21.
Traders shrugged off an unexpectedly weak construction report, instead remaining confident that U.S. economic growth remains robust despite fluctuations. New-home sales fell to an annual rate of 881,000 in February from a rate of 899,000 in the previous month.
In addition, analysts said many investors were buying into the market ahead of Tuesday's meeting of the Federal Open Markets Committee (FOMC). Few economists now expect any surprises from the committee, which sets U.S. interest-rate policy, but some traders were banking that confirmation of the forecasts will send stocks even higher in a relief rally.
Meanwhile, Wall Street got an additional charge from a strong dollar. Worries about the extent of armed conflict in Kosovo pushed the euro to new record lows against the greenback, while the yen made only minimal headway.
Bonds retreated to make room for $3 billion in municipal and corporate debt due to price later in the day, while traders remained profoundly nervous ahead of the FOMC meeting and fears of rising oil prices. The benchmark 30-year Treasury bond fell 12/32 of a point in price, driving the yield up to 5.64 percent.
Power surge for techs
In stocks, the high-tech sector picked up right where it left off after Friday's rally, reasserting its leadership to push the broader market higher.
Investors seemed to have mostly banished their worries surrounding the growth outlook for the computer industry, sending shares of most big PC manufacturers into positive territory.
Dell (DELL) led the way, climbing 1-7/16 to 39-5/16, while Gateway (GTW) gained 2-13/16 to 68-7/16 and Compaq (CPQ) added 13/16 to 32. On the Dow, IBM (IBM) gained 4-1/2 to 176-7/8 and Hewlett Packard (HWP) made up for lost time, climbing 1-1/8 to 69-13/16.
The market found shares of software giant Microsoft (MSFT) looking cheap after the company's two-for-one stock split went into effect, pushing shares up 1-3/8 to 90-7/16.
Shares of software rival Platinum Technology (PLAT) soared 14-15/16, more than 150 percent, to 24-13/16 after the company agreed to a $3.5 billion buyout offer from Computer Associates (CA). Computer Associates shares fell 1-1/16 to 32-7/8.
Other technology bellwethers were also sharply higher. Cisco (CSCO) leapt 3-13/16 to 109, while Lucent (LU) climbed 4-3/4 to 106-13/16 on news that it had signed a $1 billion supply contract with AT&T.
Wall Street's exuberance even extended to Dow member Kodak (EK), sending shares in the photography and imaging giant up 5/16 to 65-9/16 despite the company's confession of disappointing corporate profits ahead.
Oil and other mixtures
The lifeblood of commerce helped grease the rally's wheels, as global oil stocks surged in the wake of talks regarding a possible $25 billion merger between Atlantic Richfield (ARC) and seemingly insatiable BP Amoco (BPA). Atlantic Richfield soared 6-5/8, more than 10 percent, to 72 and BP Amoco leapt 3-5/8 to 104-1/16.
Elsewhere in the sector, Texaco (TX) soared 3-1/2, more than 6 percent, to 59-1/16. Dow component Exxon (XON) gained 1-9/16 to 73-1/8 and fellow blue-chip Chevron (CHV) added 2-13/16 to 89-5/8. Total (TOT) climbed 1-1/16 to 61-1/8 and Royal Dutch Shell (RD) gained 2 to 54-1/2.
In other merger news, the game of musical mergers in the pharmaceutical sector continued, with British giant Glaxo Wellcome (GLX) reportedly calling off merger talks with Bristol Myers Squibb (BMY).
Investors applauded the reported decision, pushing American depositary shares of Glaxo up 2-3/16 to 64, while Bristol Myers gained 1-13/16 to 61-5/16. Perennial Glaxo merger hopeful SmithKline Beecham (SBH) climbed 2-1/2 to 69-1/8. 
-- by staff writer Robert Scott Martin
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