U.S. stocks rose yesterday, led by computer-related shares such as Dell Computer Corp. and America Online Inc. amid optimism for surging profits.
"The market's telling you that technology is the place to be because that's where the earnings growth is," said Charles Henderson, chief investment officer at Chicago Trust Co., which manages $10 billion.
The Nasdaq composite index, packed with computer and Internet stocks, snapped back from early losses to jump 54.21, or 2.8 percent, to 2,003.75, its biggest rise since Oct. 15.
The Dow Jones industrial average climbed 16.99, or 0.2 percent, to 9,133.54, with International Business Machines Corp. accounting for the entire gain. The Standard & Poor's 500 index rose 11.65, or 1.0 percent, to 1,175.28. Declining stocks outnumbered advancers by a 16-to-15 ratio on the New York Stock Exchange as 782 million shares changed hands.
Among other broad market indexes, the Russell 2,000 index of small-capitalization stocks rose 0.99, to 398.74; the Wilshire 5,000 index gained 81.28, to 10,731.48; the American Stock Exchange composite index fell 0.58, to 663.00; and the S&P; 400 midcap index added 1.68, to 352.03.
The Sun-Bloomberg Maryland index, which tracks the top 100 stocks in Maryland by market valuation, gained 0.35, to 191.71.
Rising Maryland stocks were led by Medimmune Inc., which rose $2.125, to $69; Human Genome Sciences Inc., which increased $2.625, to $33.875; T. Rowe Price Associates, which rose $2.625, to $38.375; and Lockheed Martin Corp., up $2.625, to $106.375.
Dell rose $4, to $64.8125; IBM gained $4.75, to $169.875; and Sun Microsystems Inc. soared $5.875, to $79.9375. Microsoft Corp., the world's biggest software company, rose $7.50, to $129.50.
The 10 most-active shares in U.S. trading were computer -- or Internet -- related.
Internet-related shares soared. Yahoo! Inc., up 495 percent this year, rose $14.25, to $206.25, and WavePhore Inc., a broadcaster of news to personal computers, climbed $7.50, to $15.25.
On U.S. exchanges, 151 companies reached 52-week highs and 237 set 52-week lows.
The Dow average's gain was limited by Exxon Corp. The biggest U.S. oil company fell $3.375, to $71.625, after it agreed to buy rival Mobil Corp. in an all-stock deal valued at about $79 billion based on Exxon's closing price yesterday.
Mobil shares fell $2.25, to $83.75.
Securities firms, some of which have doubled since their October lows, fell on concern that prices are too high given the outlook for profits.
Merrill Lynch & Co. fell $1.0625, to $73.9375; Charles Schwab Corp. lost $2.375, to $54; and Lehman Brothers Holdings Inc. dropped $1.50, to $48.50, after a Merrill analyst recommended selling brokerage shares.
Institutional and retail money flowed into Morgan Stanley Dean Witter & Co., Lehman Brothers and others in recent weeks as investors bought more shares in rallies than they sold in declines.
Twinlab Corp. tumbled $3.625, or 22 percent, to $13 after the nutritional-products maker said fourth-quarter profit won't meet expectations.
Organogenesis Inc. gained 93.75 cents, to $14.50. The biomedical company replaced Dekalb Genetics Corp. class B shares in the Standard & Poor's SmallCap 600 index after the close of trading yesterday. Monsanto Co., a member of the S&P; 500 index, is acquiring Dekalb.
Boeing Co. said after the market closed that it will earn between $1.5 billion and $1.8 billion next year, far below the $2 billion analysts were estimating. The world's biggest jetmaker said it would cut 48,000 jobs by the end of 2000 as it slows production because of weak demand in Asia.
Pub Date: 12/02/98