Front Page || Main Index || Corpus Christi News || Business || Texas || Sports || Entertainment || Selena
Tuesday, Jul. 28, 1998
AmEx report helps propel 170-point Dow turnaround
But while blue chips rebound, broad market declines
Associated Press
NEW YORK - A strong earnings report from American Express helped fuel a 170-point turnaround by the Dow, but most stocks fell again Monday amid continuing worries about last week's rash of profit warnings.
The Dow Jones industrial average rose 90.88 points to 9,028.24 Monday after erasing an early 81-point deficit that briefly put the index almost 500 points below July 17's record of 9,337.97.
The blue-chip rebound also wiped out a 43-point plunge by the Nasdaq composite index, which rose 2.27 to 1,933.26, and a 12-point loss by the Standard & Poor's 500, which rose 6.47 to 1,147.27.
The broad market lagged the blue-chip recovery, however, as investors continued to shun smaller companies seen as vulnerable to the current slowdown in economic growth.
Stocks were pressured at the opening Monday after a rocky day on foreign markets, where the Japanese yen slid against the dollar and Tokyo's Nikkei Stock Average fell 2.6 percent.
Analysts cited fears that the likely new prime minister, Foreign Minister Keizo Obuchi, is ill-suited to push through tough reforms needed to end Japan's recession - and mend the battered Asian economy.
Boeing, one of several big names that stepped forward last week with discouraging earnings news - including a warning about Asia's continuing negative impact - led the Dow's early decline, falling 1 5/16 to 39, along with Union Carbide, which fell 2 to 48 despite meeting most Wall Street forecasts with its second-quarter profit report.
But those losses were easily offset by American Express, which surged 5 to 112 13/16 after topping expectations with its latest results, which were released Monday afternoon.Post your comments about local news eventsFront Page || Main Index || News || Business || Texas || South Texas Outdoors || Birdwatching || Sports || Entertainment || Selena || Education || South Texas Attractions || World Wide Web