Stocks Rise to Records on Optimism and Strong Sales

Strategic Insights -

Fast-growing companies such as Coca-Cola, Microsoft, and Lucent Technologies led the stock market to new heights on Thursday, with investors putting their money into stocks that are showing strong gains. Money managers are eager to put their cash into securities that are performing well, driven by the desire to maximize returns. The NASDAQ composite index reached a record high, while the Dow Jones industrial average also set a new milestone. Coca-Cola and other blue-chip companies are benefiting from strong sales and industry trends.

Key Takeaways:

  • Coca-Cola reached a 52-week peak for the third time this week, closing at $81.12 1/2, up 50 cents, and surpassing a market value of $200 billion for the first time.
  • Lucent Technologies jumped $3.31 1/4 to $69.43 3/4 after its 2-for-1 stock split took effect, with shares up 74 percent this year on optimism about demand for the company's equipment.
  • Microsoft climbed 93 3/4 cents to $91.31 1/4, pushing its gain for the year to 41 percent, following a strong sales report that is expected to beat analyst estimates.
  • Drug stocks, including Merck, Schering-Plough, and Pfizer, rose on expectations of new products and profits.
  • Johnson & Johnson gained $2.87 1/2 to $76.25 after launching a no-calorie sweetener.
  • Ohio Art soared $12 to $33.50 amid speculation that its toys, such as Etch A Sketch, might be distributed by Mattel.

Statistics:

  • Coca-Cola market value: $200 billion
  • Lucent Technologies share price increase: 74% this year
  • Microsoft gain for the year: 41%
  • Merck gain: $2.50 to $132.43 3/4
  • Schering-Plough gain: $2.50 to $84.31 1/4
  • Pfizer gain: 87 1/2 cents to $99.68 3/4

Sources:

  • [Source 1: NA]