Stocks Surge on Wall Street Amid Stronger-Than-Expected Growth

The Dow Jones Industrial Average and other key benchmarks rose sharply in early trading, driven by a surge in buying despite rising long-term interest rates. The economy's recent trend of stronger-than-expected growth continued, with the latest morning report from the National Association of Purchasing Management showing signs of expansion, despite a decline in its index of industrial activity from March. As a result, stocks such as International Paper, Sears Roebuck, and AT&T jumped, while retail stocks like Gap and online bookseller Amazon.com rose in anticipation of forthcoming earnings reports. However, the technology sector lagged, with Microsoft, Oracle, and America Online falling.

Key Takeaways:

• The Dow Jones Industrial Average gained 95.07, or 0.88%, to 10,884.11, while the Standard & Poor's 500 rose 6.25, or 0.47%, to 1,341.43.
• The 30-year long bond traded down 1/8 to 93, sending its yield higher to 5.671%.
• International Paper led the Dow, up $27/16 to $553/4, followed by Sears Roebuck, up $115/16 to $4715/16.
• Retail stocks moved strongly higher in anticipation of forthcoming earnings reports, with Gap rising $3 to $699/16.
• However, the technology-weighted Nasdaq composite was down 7.47 to 2,535.38, with software leader Microsoft falling $11/4 to $801/16.
• Online bookseller Amazon.com dropped 8% or $149/16 to $1571/2 and America Online lost $61/4 at $1361/2.

Statistics:

• Dow Jones Industrial Average: 95.07, or 0.88%, to 10,884.11
• Standard & Poor's 500: 6.25, or 0.47%, to 1,341.43
• 30-year long bond: down 1/8 to 93, with yield higher to 5.671%
• International Paper: up $27/16 to $553/4
• Sears Roebuck: up $115/16 to $4715/16
• Gap: up $3 to $699/16
• Microsoft: down $11/4 to $801/16
• Nasdaq composite: down 7.47 to 2,535.38

Sources:

• Financial Times Limited 1999.
• "Standard & Poor's 500"
• "National Association of Purchasing Management"
• "Financial Times Limited 1999"