Stocks Rise Amid Global Events, Trading Influenced by Computer-aided Transactions

Strategic Insights -

Stock traders and international currency traders shifted their focus from global events to economic indicators yesterday, driving stock prices up and down across various markets. Amid the trading, notable rises were seen in stocks such as Coca-Cola, Eli Lilly, and Time Warner. The Dow Jones industrial average rose 3.37 points, while the broader Standard & Poor's 500-stock index fell 0.34 point. Coca-Cola rallied the markets early with a forecast of 12% worldwide sales growth in the third quarter, exceeding analysts' estimates.

Key Takeaways:

  • The Dow Jones industrial average rose 3.37 points to 3,936.72, while the broader Standard & Poor's 500-stock index fell 0.34 point to 470.85.
  • Coca-Cola's forecast of 12% worldwide sales growth in the third quarter led to a 1 1/4 point rise to 49, with heavy volume of nearly three million shares traded.
  • Eli Lilly also rose sharply, up 2 3/8 to 58 3/8, after several analysts revised their assessments of the drug company and announced a $1 million increase in research funds for its artificial blood product venture.
  • Time Warner's shares rose 1 3/8 to 37 5/8 after a report that General Electric might be studying a bid for the media giant, although GE denied the rumor and saw its shares drop 1/2 to 50 1/2.
  • McGraw-Hill's shares dropped 1 to 75 1/2, despite being close to its 52-week high of 77 1/4, set on Friday, due to rumors of a potential takeover by a large European conglomerate.
  • Andrea Electronics saw its shares rise 7 7/8 to 19 5/8 on heavy volume after announcing that BellSouth would use its noise-reduction technology in some of its telephones.
  • Safety Components International rose 2 3/4 to 17 1/4 after the company announced that its military subsidiary had won a $65 million United States Army contract to supply mortar cartridges.

Statistics:

  • The Dow Jones industrial average rose 3.37 points to 3,936.72.
  • The broader Standard & Poor's 500-stock index fell 0.34 point to 470.85.
  • 14 of the 30 component stocks that make up the Dow industrials rose, led by International Paper, which gained 1 5/8 to 78 1/4 on no immediate news.
  • 221 stocks in the S.& P. 500 index fell, led by General Electric.
  • Intel was the most active stock, with 4.7 million shares traded, after a recommendation by the manager of a Fidelity fund.

Sources:

  • The New York Times
  • USA Today
  • Bloomberg
  • The Wall Street Journal
  • Reuters
  • Business Wire