Newspaper article THE JOURNAL RECORD

IBM Leads Rise in Dow Jones on Report of New Development

Newspaper article THE JOURNAL RECORD

IBM Leads Rise in Dow Jones on Report of New Development

Article excerpt

NEW YORK (Bloomberg) -- The Dow Jones Industrial Average rose Thursday, led by International Business Machines, on a report it has developed a faster information-storage system. The Standard & Poor's 500 Index and Nasdaq Composite Index both gained for the first day in six.

Still, three stocks fell for every two that advanced on the New York Stock Exchange. Government reports Thursday, and one on July employment coming today, fueled concern the Federal Reserve will raise interest rates to stem inflation.

"Everyone's madly nervous about the jobs number," said Maureen Allyn, chief economist of Scudder Kemper Investments, which oversees $280 billion. "I think volatility is going to be enormous" until Fed policy-makers meet Aug. 24.

The Dow average rose 119.05, or 1.1 percent, to 10,793.82, reversing an earlier decline of 109 points. The S&P 500 gained 8.38, or 0.6 percent, to 1,313.71. The Nasdaq climbed 25.81, or 1 percent, to 2,565.81.

IBM jumped 4 11/16 to 123 3/16. The world's largest computer maker has developed a way to store information 1,000 times faster than possible now using roughly half the power, according to research that will be published today in the trade journal Science. The technology is still at an early stage and won't be available in storage products anytime soon.

American Express rose 3 5/8 to 127 1/8 after the third-largest credit-card company said it's spending at least $250 million a year to expand its travel, banking and card businesses on the Internet.

The company wants to beef up existing Web sites and introduce new products, according to notes of a presentation by Chief Executive Harvey Golub at American Express's semi-annual briefing for analysts and investors.

Analysts at Salomon Smith Barney, Bear, Stearns and Warburg Dillon Read reiterated "buy" ratings on the company, while Prudential Securities maintained its "strong buy" rating on the company.

Some 854 million shares changed hands on the Big Board, more than the three-month daily average of 740 million.

The Labor Department said worker productivity rose at a 1.3 percent annual rate in the second quarter. Analysts surveyed by Bloomberg had projected an increase of 1. …

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