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Stocks conquer new ground
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January 6, 1999: 2:19 p.m. ET
Dow, Nasdaq and S&P 500 all charge to new highs in broad-based rally
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NEW YORK (CNNfn) - The onslaught of the bulls continued on Wall Street in afternoon trading Wednesday, as a flurry of merger activity and the usual January buying spree pushed the market deep into record territory.
Shortly after 2 p.m. ET the Dow Jones industrial average was 189.50 points, or 2 percent, higher at 9,500.69, trading well above its last record close of 9,374.27, set Nov. 23.
On the New York Stock Exchange advances trounced declines 1,906 to 1,099 as 675 million shares traded.
The Nasdaq Composite surged 65.85, or 2.9 percent, to 2,317.12 and the S&P 500 index gained 23.92, or 1.9 percent, to 1,268.70, both trading in record territory. (Click here for a look at today's CNNfn market movers)
The bond market turned mixed as the dollar continued to claw its way back against the Japanese yen. The benchmark 30-year Treasury bond traded 6/32 of a point higher in price, for a yield of 5.19 percent.
The dollar regained ground against the yen, but market watchers predicted more pain ahead for the U.S. currency. The greenback also traded higher against the euro.
Mergers and high hopes
In stocks, a simmering merger frenzy and hopes that the first month of the year will bring investors the traditional high returns helped push all major market indexes sharply higher.
Technology, Internet, financial and transportation issues led the way.
Shares of wireless giant AirTouch Communications (ATI) gained 2-1/8 to 79-5/8 after British firm Vodafone (VOD) made a $55 billion offer to acquire the company, well above the $45 billion Bell Atlantic (BEL) offered to pay. Vodafone's American depositary receipts eased 11/16 to 178-7/16 and Bell Atlantic's shares gained 2-7/16 to 57.
Merger speculation also brewed in the auto sector, where DaimlerChrysler (DCX) is in talks to acquire Nissan Motor (NSANY) and Ford (F) is widely rumored to be eyeing BMW and Honda Motor (HMC). DaimlerChrysler was up 1-3/16 to 107-5/16 and Ford moved 1-15/16 higher to 61-7/16.
Elsewhere in the market, investors' appetite for technology and Internet issues also kept going strong. Among the blue-chip techs, Dow component IBM (IBM) rose 2-1/8 to 191-3/4, Microsoft (MSFT) advanced 3-1/4 to 149-3/4, Dell Computer (DELL) gained 2-3/4 to 78, and Intel (INTC) surged 5-1/4 to 128-1/2.
On the Internet front, shares of Amazon.com (AMZN) climbed 13-15/16 to 138-7/16 and Yahoo! (YHOO) surged 22-7/8 to 280-3/4.
Airline shares extended Tuesday's strong gains, driving the Dow transports index 100.17, or 3.1 percent, higher to 3,292.55. Shares of AMR (AMR), the parent of American Airlines, rose 3-3/16 to 67-1/4, Delta Air Lines (DAL) was up 3-1/8 to 57-5/8, and UAL (UAL), the parent of United Airlines, advanced 1-5/8 to 65-1/4.
Among the day's few losers, aerospace and defense giant NorthropGrumman (NOC) tumbled 5-13/16 to 67-7/16 after the company revealed that its 1998 pretax income will be cut by $1.18 a share due to charges stemming mostly from reduced deliveries to Boeing.
Finally, shares of Aspect Telecommunications (ASPT) tumbled 4-5/8, or more than 27 percent, to 12-7/16 after the company said it would earn 12 to 14 cents a share in the fourth quarter, well below market expectations for 21 cents a share. 
-- by staff writer Malina Poshtova Zang
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