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Computer industry

Stock Market Rallies for Second Straight Day Led by Tech and Auto Issues

Strategic Insights

— 2 min read

The stock market continued its upward trajectory for the second straight day, driven by significant gains in technology and auto issues. Key players in these sectors, including Apple Computer Inc., I.B.M., and the Detroit-based Big Three auto makers, witnessed substantial increases in their stock prices. Analysts attribute the rally to the anticipation of strong third-quarter profits and the impact of earnings on the market. The broader market indicators, including the Dow Jones industrial average, Standard & Poor's index, and Nasdaq composite index, also posted gains, with advancing issues outnumbering decliners by a ratio of almost 2 to 1.

Key Takeaways:

  • Apple Computer Inc. shares rose 1 7/8 to 38 7/8, driven by negotiations with I.B.M. to establish a common standard for personal computers and acquisition rumors.
  • I.B.M. shares advanced 3/8 to 71 1/2, also benefiting from the same reasons as Apple.
  • The Detroit-based Big Three auto makers, General Motors Corporation, Ford Motor Company, and Chrysler Corporation, saw their stock prices increase by 1 5/8, 1, and 1 1/4 respectively.
  • The Dow Jones industrial average posted a gain of 23.89 points to close at 3,821.32, following a rise of 21.87 points on Friday.
  • The broader market indicators, including the Standard & Poor's index and Nasdaq composite index, also recorded gains, with the Standard & Poor's index rising by 3.94 points and the Nasdaq composite index increasing by 6.85 points.
  • Advancing issues outnumbered decliners by a ratio of almost 2 to 1, while volume totaled 213.2 million shares, the lowest in five weeks.
  • Oil stocks, led by Scott Paper Company, Texaco Inc., the Royal Dutch Petroleum Company, and the Shell Transport and Trading Company, also posted gains, despite a decline in crude oil prices.

Statistics:

  • Apple Computer Inc. shares rose 1 7/8 to 38 7/8.
  • I.B.M. shares advanced 3/8 to 71 1/2.
  • The Dow Jones industrial average gained 23.89 points to close at 3,821.32.
  • The Standard & Poor's index rose by 3.94 points to close at 459.04.
  • The Nasdaq composite index increased by 6.85 points to close at 756.81.
  • Advancing issues outnumbered decliners by a ratio of almost 2 to 1.
  • Volume totaled 213.2 million shares, the lowest in five weeks.

Sources:

  • "Stock prices rose sharply for the second straight day, led by technology and auto issues -- both of which were among last week's laggards." (Source: Unspecified)
  • "On the technology side, continuing negotiations between Apple Computer Inc. and I.B.M. to establish a common standard for personal computers, along with acquisition rumors, pushed up the stock of both companies." (Source: Unspecified)
  • "Richard Cripps, chief market strategist for Legg Mason, said: 'This demonstrates more than ever that given a neutral bond market, the path of least resistance for stock prices is higher.'" (Source: Legg Mason)
  • "The cash Treasuries market was closed yesterday for the Columbus Day holiday and the futures session was abbreviated." (Source: Unspecified)

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