Newspaper article THE JOURNAL RECORD

Dow Industrials Closing in on 10,000

Newspaper article THE JOURNAL RECORD

Dow Industrials Closing in on 10,000

Article excerpt

NEW YORK (Bloomberg) -- U.S. stocks rose Monday after Pioneer Hi- Bred International and BankBoston agreed to be taken over and an optimistic earnings forecast from UAL propelled the Standard & Poor's 500 Index to a record. The Dow Jones Industrial Average closed within 42 points of 10,000.

"The mergers are getting bigger," said Gil Knight, a money manager who helps oversee $11 billion in assets at Allied Investment Advisors in Baltimore. "It's a sign of a buoyant market."

The Dow industrials rose 82.42 Monday to 9,958.77, their first close above 9,900. The average touched 9,970.15 in late trading, the closest yet to the 10,000 mark. J.P. Morgan and General Electric contributed most to the Dow's gains. "People were buying on enthusiasm for the Dow to hit 10,000, and a lot of day traders probably saw at 3 o'clock that we weren't going to hit it," said Ken Ducey, chief trader at BT Brokerage, a unit of Bankers Trust. "Tomorrow's another day." The Standard & Poor's 500 Index rose 12.67, or 1 percent, to 1,307.26, its fourth record in five sessions. The Nasdaq Composite Index climbed 49.91, or 2.1 percent, to 2,431.44. Decliners and advancers were almost evenly matched on the New York Stock Exchange. Pioneer Hi-Bred, the world's largest seed-corn company, rose 4 1/16 to 38 3/8 and was the biggest gainer in the S&P 500. DuPont said it would buy the 80 percent of Pioneer Hi-Bred that it doesn't already own for about $40 a share in cash and stock. Mergers are "good for the shareholders, because they show the premier companies are able to get bigger and gain market share," said Donald Selkin, chief market strategist at Joseph Gunnar & Co. DuPont fell 1 1/2 to 56 1/4, shaving 6 points off the Dow average. The company said it expects the Pioneer acquisition to cut fully diluted earnings per share by 7 percent in 2000, the first full year the companies will be merged. …

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