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Stocks Rise a Bit; Dow Up 28.17

June 7, 1999

NEW YORK (AP) _ Stocks opened modestly higher today as corporate mergers helped distract investors from lingering concerns about inflation.

At 10 a.m. on Wall Street, the Dow Jones industrial average was up 28.17 at 10,828.01.

Broader stock indicators were mixed. The Standard & Poor’s 500 index was down 0.45 at 1,327.30, and the Nasdaq composite index was up 15.55 at 2,493.89.

Traders were already looking ahead to Friday, when the government’s producer price index is expected to offer the next indication of whether the Federal Reserve will raise interest rates in an effort to stave off inflation. Stocks have slipped in the weeks since the Fed warned it might raise interest rates, and volume has been lower than normal as Wall Street weighs the impact of a possible increase.

But major corporate mergers stimulated trading today. AlliedSignal and Honeywell agreed to merge in a $14 billion deal, creating an aerospace parts-and-electronics powerhouse.

A pair of Salt Lake City banks, First Security Corp. and Zions Bancorp, will merge in a deal worth $5.9 billion

On Friday, the Dow rose 136.15 to close at 10,799.84.

But major corporate mergers stimulated trading today. AlliedSignal rose 3 5/8 to 62 and Honeywell rose 4 1/8 to 109 1/8 after the companies announced they will merge, creating an aerospace parts-and-electronics powerhouse.

A pair of Salt Lake City banks, First Security Corp. and Zions Bancorp, will merge in a deal worth $5.9 billion. First Security rose 6 1/4 to 24 7/8, and Zions fell 5 9/16 to 59 13/16.

Declining issues outnumbered advancers by a 10-to-9 margin on the New York Stock Exchange, where volume came to 84.9 million shares, well behind Friday’s pace.

The NYSE composite index was fell 0.62 to 633.90, and the American Stock Exchange composite index was down 5.12 at 775.86.

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