DOW CLOSES OVER 9,000; FINANCIAL, INSURANCE STOCKS LEAD THE WAY IN RECORD SURGE.

Byline: Bruce Meyerson Associated Press 

Bulling past a new milestone, the Dow industrials Monday closed above 9,000 for the first time, extending a relentless climb that got its final nudge from the biggest business merger ever.

The nine-month journey, which included a brief detour below 7,000 during October's swoon, was long and hard - at least by recent standards.

But dire predictions of the bull market's impending collapse just five months ago could not choke investors' appetite for stocks. Monday's first-time close above 9,000 by the Dow represents a stellar 14.2 percent gain for this year, a bigger climb than even the most optimistic forecasts for all of 1998.

The push that tipped the Dow over the 9,000 milestone was fitting.

Investors have kept the bull market running by putting their savings into mutual funds at financial services companies. On Monday, Citicorp and Travelers Group, returned the favor, announcing a merger made possible by their rising stock values and that sent financial stocks surging further ahead.

Without the rise in financial stocks, the Dow would have missed the historic marker and lost ground for the day.

``It's just a big bull run because there's so much money around,,'' said Eugene Mintz, financial markets analyst at Brown Brothers Harriman & Co. ``Certainly the merger of Citicorp and Travelers is an outgrowth of the bull market.''

The Dow rose 49.82 points to 9,033.23 Monday, gaining an unprecedented 1,124.98 points in just over three months after starting the year at 7,908.25.

Suddenly, despite opening the year with a 4 percent slide, the Dow isn't very far from extending its already unmatched three-year string of better-than 20 percent gains. Some Wall Street experts have raised their Dow targets to 10,000 and beyond, but many are standing by their forecasts.

``My point of view will sound incredibly grumpy against this ebullient background. This pendulum could swing further. We could end up the year a little lower than where we are now,'' said Charles G. Crane, chief market strategist at Key Asset Management. ``We're dealing in a psychological currency that's as powerful as I've ever seen.''

Analysts don't necessarily foresee a dramatic downturn, particularly with the continuing torrent of money pouring into mutual funds that will further boost some stocks. But they caution against unrealistic expectations.

``There's no reason to be bearish,'' said A. Marshall Acuff Jr., equity strategist at Salomon Smith Barney.

Wall Street certainly isn't. Only half-joking, William P. Miller, chief investment officer at American Express Asset Management Group in Minneapolis, signaled the quest for the next milestone: ``Dow 10,000 isn't far away.''

1,000-point leaps

Nov. 14, 1972 - Closes above 1,000 for the first time, at 1,003.16.

Jan. 8, 1987 - Closes above 2,000, at 2,002.25, taking 3,693 trading days since its first close above 1,000.

April 17, 1991 - Closes above 3,000, at 3,004.46, taking 1,115 trading days.

Feb. 23, 1995 - Closes above 4,000, at 4,003.33, taking 1,007 trading days.

Nov. 21, 1995 - Closes above 5,000, at 5,023.55, taking 194 trading days.

Oct. 14, 1996 - Closes above 6,000, at 6,010.00, taking 235 trading days.

Feb. 13, 1997 - Closes above 7,000, at 7,022.44, taking 89 trading days.

July 16, 1997 - Closes above 8,000, at 8,038.89, taking 110 trading days.

Tuesday - Closes above 9,000, at 9,033.23, taking 189 trading days.

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Box

BOX: 1,000 point leaps