Stocks Rush Forward; Dow Up 110
NEW YORK (AP) _ Stocks surged deep into record territory after the opening of trading today, sending the Dow industrials vaulting over the 9,000 mark on news of a mammoth financial services merger.
At 10 a.m. on Wall Street, the Dow Jones industrial average was up 110.10 at 9,093.51, its highest point to date. The barometer of blue-chip stocks surpassed the milestone early Friday, only to close nearly 17 points short.
Broad market indexes were also at record levels.
Advancing issues outnumbered decliners by a nearly 2-to-1 margin on the New York Stock Exchange, where volume came to 751.70 million shares, below Friday’s early pace.
The surge followed the announcement that Citicorp and Travelers Group are merging in a record $70 billion deal. The pact unites the nation’s second-biggest bank and a leading provider of financial services ranging from trading stocks to insurance.
The news made Travelers Group the most-traded stock on the New York Stock Exchange, up 7 1/2 at 69 3/16 and drove up the values of bank and financial services stocks en masse.
Citicorp as up 24 1/8 at 167, NationsBank was up 2 3/8 at 76 1/4, Merrill Lynch was up 7 1/4 at 93 3/4, and Chase Manhattan was up 5 1/2 at 145 5/8.
Broad-market indexes surged into record territory.
The Standard & Poor’s 500 list was up 8.71 at 1,131.41, the NYSE composite index was up 4.82 at 598.90, the Nasdaq composite index was up 2.70 at 1,858.10, and the American Stock Exchange composite index was up 1.98 at 749.17 _ all surpassing the records they hit on Friday.
Overseas, Tokyo’s Nikkei stock average rose 1.2 percent. In afternoon trading, Frankfurt’s DAX index was up 0.9 percent and London’s FT-SE 100 was up 0.5 percent.