Market Hits Records as IBM Profits and Tech Shares Surge

Strategic Insights -

The stock market reached new heights on Tuesday, with the Dow Jones industrial average rising to 9,184.94, surpassing its previous record close of 9,167.50. The surge was led by a strong profit report from IBM and a buying frenzy in Internet-related shares. Meanwhile, the Clinton administration announced its opposition to an increase in visas for foreign workers, citing concerns that U.S. employers are not giving preference to domestic workers for high-skilled jobs. Elsewhere, the Federal Communications Commission imposed a record fine of $5.7 million on a small long-distance operator for engaging in telephone slamming.

Key Takeaways:

  • IBM's profit report contributed significantly to the market's surge, with the company's stocks leading the charge.
  • The Dow Jones industrial average rose 43.10 points to 9,184.94, marking a new record close.
  • The blue-chip barometer, which had slipped 25 points on Monday, reversed course to finish the day with a gain.
  • Broad-market measures, including the Standard & Poor's 500 and the Nasdaq composite index, also set new records.
  • The Clinton administration opposed an increase in visas for foreign workers, citing concerns for domestic job seekers.
  • The Federal Communications Commission imposed a record fine of $5.7 million on a small long-distance operator for engaging in telephone slamming.
  • Intel Corp.'s new 400-megahertz Pentium IIs chip impressed a crowd of computer executives at the Comdex Spring '98 show in Chicago.
  • Tivoli Systems announced it will begin selling software aimed at managing computer networks for small and medium-sized businesses.
  • National Instruments reported a 17 percent increase in earnings and a 20 percent increase in sales for the first quarter.
  • IntelliQuest Information Group reported a 33 percent increase in revenues, but a net loss due to a reorganization effort.

Statistics:

  • The Dow Jones industrial average rose 43.10 points to 9,184.94.
  • The previous record close was 9,167.50, set on Friday.
  • The Clinton administration is opposing an increase in visas for foreign workers.
  • The Federal Communications Commission imposed a record fine of $5.7 million on a small long-distance operator for telephone slamming.
  • Intel Corp.'s new 400-megahertz Pentium IIs chip processes media feats like showing full-motion movies at speeds of 360 degrees.
  • Tivoli Systems will begin selling software for small and medium-sized businesses.
  • National Instruments reported first-quarter earnings of $8.8 million and sales of $54.6 million.
  • IntelliQuest Information Group reported revenues of $10 million, up 33 percent from the previous year.

Sources:

  • AUSTIN AMERICAN-STATESMAN
  • Staff and wire reports
  • Business Editor Becky Bisbee: 445-3671
  • Fax: 445-3971
  • E-mail: Business@statesman.com
  • P.O. Box 670, Austin, TX 78767