Stocks Rebound as Dow Jones Surges 300.01 Points

The Dow Jones industrial average staged a powerful rally, rising 300.01 points, or 2.75 percent, to 11,221.93, as the Nasdaq composite index plummeted in a technology sell-off prompted by the Microsoft antitrust decision. The Standard & Poor's 500-stock index rose 7.39 points, or 0.49 percent, to 1,505.97. This was the highest close for the Dow since Jan. 21 and the sixth largest on record in point terms. Investors are seen shifting their focus towards traditional industries, with financial stocks performing well.

Key Takeaways:

• The Dow Jones industrial average rose 300.01 points, or 2.75 percent, to 11,221.93, marking its highest close since Jan. 21 and the sixth largest on record in point terms.
• The Standard & Poor's 500-stock index rose 7.39 points, or 0.49 percent, to 1,505.97.
• Investors are moving towards traditional industries, with financial stocks showing strength, driven by rising stocks in companies such as J. P. Morgan, Chase Manhattan, and Merrill Lynch.
• Bell Atlantic rose 1 15/16, to 63 1/16, following the announcement of its combined wireless and paging operations with Vodafone AirTouch.
• I.B.M. bucked the trend, rising 3 7/8, to 121 7/8, after the company announced it had perfected a method to make chips 30 percent faster than current models.
• The acquisition of Union Pacific Resources Group by Anadarko Petroleum for approximately $4.4 billion was also announced, with Union Pacific rising 3/16, to 14 11/16, while Anadarko fell 4 3/16, to 34 1/2.

Statistics:

• Dow Jones industrial average rose 300.01 points, or 2.75 percent.
• Standard & Poor's 500-stock index rose 7.39 points, or 0.49 percent.
• I.B.M. announced a 30 percent increase in chip speed.
• Union Pacific Resources Group acquisition by Anadarko Petroleum worth approximately $4.4 billion.

Sources:

• "The New York Times: Business Section"
• "Variations in the Dow"