NEW YORK -- U.S. stocks rose yesterday, led by oil issues, as oil-producing nations announced further production cuts in an attempt to boost prices.
Drug, retail and computer shares also gained, helping major indexes surge late in the day. Computer-guided buy orders fueled the rally, amid speculation that corporate profits will meet forecasts.
The Dow Jones industrial average rose 66.76 to close at 8,870.56. The Standard & Poor's 500 index rose 12.10 to 1,094.83.
The Nasdaq composite index, dominated by large computer-related companies, rose 27.64 to 1,769.95, a gain of 1.59 percent, its best in four weeks.
Intel rises $2.25
Intel Corp. led the Nasdaq's gains, rising $2.25 to $68.1875 after dismissing speculation that it soon will warn of a profit shortfall.
Among other broad market indexes, the Russell 2,000 index of small capitalization stocks rose 2.58 to 451.74; the Wilshire 5,000 index jumped 99.65 to 10,325.22; the American Stock Exchange composite index climbed 4.98 to 709.46; and the S&P; 400 midcap index added 3.27 to 356.96.
The Bloomberg Maryland index, which tracks the top 100 stocks in Maryland by market valuation, slid .12 to 225.56.
Advancing stocks outnumbered decliners by a 4-to-3 margin on the New York Stock Exchange. Five waves of computer-guided buy orders caused stocks to jump late in the day.
Texaco Inc. rose $1.8125 to $58.125; Chevron Corp. gained $1.1875 to $80.125; and Mobil Corp. rose $1.125 to $76.50.
Among companies that make equipment for drilling or provide services to oil companies, Cooper Cameron Corp. jumped $2.0625 to $58.625; Schlumberger Ltd. rose $2.8125 to $76.875; and Varco International Inc. rallied $1.50 to $24.
DSC Communications Corp. surged $7.8125 to $27.50, making it the biggest gainer in the S&P; 500, after France's Alcatel Alsthom SA, the world's No. 4 telecommunications company, agreed to buy the network equipment maker for $4.4 billion in stock, or $35.40 a share.
Drug issues gain
Drug stocks were strong, led by Pfizer Inc., up $4.125 to $107; Merck & Co., up $3.125 to $115.6875; and American Home Products Corp., up $1.875 to $50.50.
There appeared to be no news to account for the gains in drug stocks, other than that investors are looking for stocks that have solid prospects for earnings growth.
Wal-Mart Stores Inc. rose 62.5 cents to $56.625 after reporting an 11 percent sales gain, and Kmart Corp. rose 43.75 cents to $19.5625. Gap Inc. rose $2.125 to $56.25 and discounter TJX Cos. gained $1.6875 to $48.875.
Northwest Airlines Corp. fell $2.8125 to $39.8125 after citing slowing business in Asia for a profit shortfall.
Borg-Warner Automotive Inc. slumped $9.9375 to $47.50. It had warned after the market closed Wednesday that it expects second-quarter profit to be below that of 1997's second quarter.
Best Buy Co. jumped 93.75 cents to $32.875 after the Minneapolis-based electronics retailer said it expects fiscal first-quarter earnings to be at the high end of forecasts and reported a 21 percent increase in sales for the quarter, amid robust home-office and electronics sales.
Ballantyne of Omaha Inc. slumped $4.875 to $12.50.
The maker of motion-picture projection and entertainment-lighting equipment said lower theater and lighting product sales will result in lower-than-expected second-quarter earnings and revenue.
Ballantyne said it will earn 14 cents to 15 cents a diluted share, FTC rather than the 25 cent consensus of six analysts polled by First Call Corp.
Pub Date: 6/05/98