Market Surge: Stocks Recover from Three-Day Slump

Strategic Insights -

A strong rally in the bond market, combined with powerful first-quarter earnings from companies like I.B.M. and Oracle Systems, helped drive the stock market up yesterday in extremely heavy trading. The Dow Jones industrial average rose 53.83 points, to 3,652.54, and the broader Standard & Poor's 500 rose 6.77 points, to 448.73. The Nasdaq composite index, heavily weighted with battered technology stocks, led the gains, up 13.22 points, to 718.74. Compaq Computer, which declared a 3-for-1 stock split, rose 6 7/8 to a 52-week high of 108 3/4 on the Big Board.

Key Takeaways:

  • The stock market surged yesterday, with the Dow Jones industrial average rising 53.83 points, to 3,652.54.
  • The broader Standard & Poor's 500 rose 6.77 points, to 448.73, while the Nasdaq composite index led the gains, up 13.22 points, to 718.74.
  • Companies like I.B.M., Oracle Systems, Cisco Systems, and Apple Computer all saw significant increases in their stock prices.
  • Compaq Computer declared a 3-for-1 stock split and rose 6 7/8 to a 52-week high of 108 3/4 on the Big Board.
  • The 30-year Treasury bond rose 16/32, to 8812/32, with the yield falling to 7.21 percent.
  • Investors are cautious, citing a lack of clear signs that the market "correction" is over.
  • Economists have criticized the Philadelphia Fed's April price index for indicating little about future price increases.

Statistics:

  • The Dow Jones industrial average rose 3,652.54 to 53.83.
  • The broader Standard & Poor's 500 rose 448.73 to 6.77.
  • The Nasdaq composite index rose 718.74 to 13.22.
  • The 30-year Treasury bond yield fell to 7.21 percent.
  • Compaq Computer rose 6 7/8 to a 52-week high of 108 3/4.
  • Volume on the New York Stock Exchange was unusually heavy at nearly 379 million shares.

Sources:

New York Times, "Market Surge; Big Bond Rally Helps Stocks Rebound; Compaq Rises to 52-Week High" (date not specified)

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