STOCKS STAMPEDE TO HIGHER PLATEAUS.Byline: Dominic G. Diongson Knight Ridder
Knight Ridder (IPA: /ˈrɪdɚ/) was an American media company, specializing in newspaper and Internet publishing. Tribune News Wire
Major market averages charged into record territory once again Monday, amid seemingly unwavering investor enthusiasm for U.S. equities. The Dow Jones Industrial Average Dow Jones Industrial Average
The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. rose 42.72 points, or 0.57 percent, to finish at 7,478.50, after piercing the 7,500 level for the first time ever.
Also closing at record highs, the technology-laden Nasdaq composite The Nasdaq Composite is a stock market index of all of the common stocks and similar securities (e.g. ADRs, tracking stocks, limited partnership interests) listed on the NASDAQ stock market, meaning that it has over 3,000 components. It is highly followed in the U.S. rose 7.20 to 1,412.04, the S&P 500 gained 4.92 to 862.93, the New York Stock Exchange New York Stock Exchange (NYSE)
World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. climbed 2.04 to 450.17, and the Russell 2000 rose 0.78 to 387.90.
Stocks traded mostly higher throughout the day, extending Friday's broad-based rally, and the market managed to shrug off weaker bond prices, which was undermined by a heavy dose of profit-taking.
Although stock prices appear to be a bit stretched with the Dow and S&P 500 into uncharted territory
``As far as the broader averages are concerned, it's not unreasonable to be (trading) at these levels,'' said Joseph Battipaglia, chief investment strategist at Gruntal & Co. He added that based on expected earnings for this year, a price-to-earnings multiple of 18 for the S&P 500 is not that far from his view of fair value.
``With rates coming down lower, inflation staying quiet, why wouldn't the market trade at these levels?'' he asked. He added that he believes the Federal Reserve will leave interest rates unchanged at its early July policy meeting.
Brokerage firms, drugs and personal-computer makers led the market's advance, while on the downside On the Downside is an EP by the San Diego, California band Counterfit, released by Alphabet Records in 2000. It was the band's first EP, recorded shortly after the members had relocated to San Diego from Fairfield County, Connecticut. , airliners, money center banks Money center banks
Banks that raise most of their funds from the domestic and international money markets , relying less on depositors for funds. and energy firms were among the weakest-performing groups.
``The tone of the market still remains positive, and the path of least resistance Noun 1. path of least resistance - the easiest way; "In marrying him she simply took the path of least resistance"
line of least resistance
fashion - characteristic or habitual practice continues to be the upside,'' said Bill Meehan, market analyst at Prudential Securities.
The Dow's highest closes
1. 7,478.58, June 9, 1997
2. 7,435.78, June 6, 1997
3. 7,383.41, May 27, 1997
4. 7,357.23, May 28, 1997
5. 7,345.91, May 23, 1997
6. 7,333.55, May 15, 1997
7. 7,331.04, May 30, 1997
8. 7,330.18, May 29, 1997
9. 7,312.15, June 3, 1997
10. 7,305.29, June 5, 1997
Chart: (Color) The Dow's highest closes
Photo: (Color) No caption (Stockbrokers trading)