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Tuesday, Sep. 15, 1998
150-point gain puts Dow above 1998 starting point
Analysts cite mounting hopes that Fed will reduce interest rates to offset economic drag from overseas
By BRUCE MEYERSON
Associated PressNEW YORK - Stocks rose sharply Monday, extending Friday's rally and making it the first time in three weeks the market has managed two consecutive winning sessions.
The Dow Jones industrial average finished with a gain of 149.85 at 7,945.35 after rising by as much as 243 points in the aftermath of Friday's 180-point gain.
While the two-session advance lifted the Dow back above its 1998 starting point, 7,908.25, the blue-chip average still sits about 1,400 points, or 15 percent, below the July 17 peak of 9,337.97.
Broader indicators also padded Friday's gains, thanks to some largely symbolic steps toward addressing the economic crises overseas.
Analysts also cited mounting hopes that the Federal Reserve will cut interest rates to offset the economic drag from overseas, as well as continuing relief that Kenneth Starr's report on President Clinton produced no major revelations about matters other than Monica Lewinsky.
The new week was ushered in by strong showings on several key markets. Tokyo share prices rose sharply amid signs of compromise in the political stalemate over proposals to repair Japan's debt-crippled banking sector.
European markets also rallied as officials from the world's top industrialized nations, meeting in London to discuss Russia's financial crisis, said they would insist on continuing economic reforms as a condition for aid.
Later, in a speech in New York, President Clinton said he has asked Fed Chairman Alan Greenspan and Treasury Secretary Robert Rubin to meet with their counterparts from other leading nations to devise a strategy against the ``biggest financial challenge facing the world in a half century.''
``There certainly are a lot of financial woes out there and (Clinton's speech) was probably reassuring. It may not resolve anything, but at least somebody's doing something,'' said Thom Brown, market strategist for Philadelphia-based Rutherford, Brown & Catherwood.
Notably, the mood remained optimistic on Monday even though the market was facing the latest in a series of disappointing profit forecasts from a major company.
Disney sank 1 to 24 7/16 in heavy trading as investors were given their first chance to react to late Friday's warning by the entertainment conglomerate about this quarter's results.
But easily offsetting Disney's drag on the Dow were Merck, up 4 to 132; American Express, up 3 5/16 to 81 11/16; and General Motors, up 3 to 59 7/16.
The Standard & Poor's 500 rose 20.66 to 1,029.72, and the technology-heavy Nasdaq composite index rose 24.05 to 1,665.69.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