Dow 30 hits high of 5,933.97 for record Dropping bond yields spur stocks; index is up 150% since Oct. 1990

NEW YORK — NEW YORK -- U.S. stocks rose to records for a second day yesterday, bolstered by expectations that the lowest bond yields in six weeks will cause businesses and consumers to spend more money.

Shares of Intel Corp., Microsoft Corp. and General Electric Co. paced the advance.


The Dow Jones industrial average rose 29.07 to an all-time high of 5,933.97, its seventh gain in nine sessions. International Business Machines Corp. rose $2.125 to $125.875; GE climbed $1.25 to $91.875; and Boeing Co. rose $1.125 to $96.375. The 30-stock average is up 15.96 percent this year.

Since the bull market began in October 1990, the Dow has risen 150.9 percent, making it the largest rally ever without a 10 percent drop, according to Birinyi Associates Inc.


Computer stocks gained after CompUSA Inc., the nation's largest computer retailer, reported that sales climbed 27 percent in its first quarter ended Sept. 28. Comp-USA's shares rose $2 to a record $55.375.

Advancing stocks topped declining stocks 1,651 to 771 on the New York Stock Exchange, the biggest mismatch since 994 more stocks rose than fell on Sept. 13. Some 440.1 million shares traded on the Big Board, exceeding the three-month daily average of 379.5 million.

Among broad market indexes, the Standard & Poor's 500 index climbed 4.93 to 694.01, its third record in a row. The Nasdaq composite index, home to a slew of computer, semiconductor and software shares, snapped a two-day losing streak, rising 14.60 to 1,236.11.

The Russell 2,000 index of small capitalization stocks rose 2.86 to 348.19; the Wilshire 5,000 index, composed of stocks on the New York, American and Nasdaq stock exchanges, rose 47.32 to a record 6,820.50; the American Stock Exchange market value index climbed 3.30 to 571.85; and the S&P; 400 mid-cap index jumped 1.85 to a record 243.33.

The Morgan Stanley high-tech index rose 5.08 to 354.19. At a conference in San Francisco, Dell Computer Corp. Chief Financial Officer Tom Meredith said demand for computers is being driven by a drop in the cost of computing power.

Planet Hollywood International Inc.'s stock fell $1.375 to $26.50. The Wall Street Journal reported that the restaurant operator's stock has been sold by some equity mutual funds whose managers aren't willing to risk its high multiple of 62 times estimated 1996 earnings.

Pub Date: 10/03/96