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To: Mark Fowler who wrote (9479)	7/8/1998 2:04:00 PM
From: tonyt	Respond to of 164684

The Wall Street Journal Interactive Edition -- July 8, 1998 Stocks Edge Higher Despite Stumble In Internet Sector By TERRI CULLEN INTERACTIVE JOURNAL Share prices rose in quiet trading Wednesday, despite a sharp slide in the Internet sector. Uncertainty about the outlook for Japan's sagging economy lifted the dollar against the yen, while bonds edged lower. The Dow Jones Industrial Average was up 50 points to 9135 in early afternoon trading. The industrial average slipped 6.73 Tuesday after trading above 9100 for much of the session. Travelers Group provided most of the industrials' strength, rising 3 15/16 to 68 1/2 after Merrill Lynch & Co. raised its intermediate-term ratings on the stock and shares of Citicorp on optimism about the companies' proposed merger. Citicorp's shares jumped 9 5/16 to 169 13/16. J.P. Morgan, often the center of takeover speculation, was the industrials second biggest gainer. Its shares rose 2 1/16 to 124 3/4. The Standard & Poor's 500-stock index climbed 7.30 to 1162, the New York Stock Exchange Composite Index added 2.80 to 592.50. Both closed at new highs Monday. The Nasdaq Composite Index rose 13.70 to 1921.80, but the Russell 2000 index of small-capitalization shares remained weak, slipping 0.50 to 458.60. After taking a breather Tuesday from the past month's blistering rally, Internet stocks tumbled as investors moved to lock in profits ahead of Yahoo!'s second-quarter earnings report, set for release later Wednesday. The search engine company will be the first of the Internet group to post earnings for the period. Yahoo's shares slumped 6 1/2 to 184 1/2. Elsewhere in the sector, Amazon.com skidded 14 1/8 to 108, Lycos lost 7 3/4 to 77 1/4 and Excite slid 5 3/16 to 91 1/16. Overall, technology stocks posted solid gains, however, as investors shrugged off worries about impact of the Asian financial crisis on earnings and focused on the sector's long-term prospects. The Morgan Stanley high-technology index advanced 4.70 to 608.50, while the Nasdaq computer index rallied 10.90 to 857.90. "The market's been living with Asia hanging over its head for 11 months and its impact on this group has already been substantially discounted," said Alfred Goldman, chief market strategist at A.G. Edwards & Sons. "Many are betting that techs have experienced the maximum emotional impact from Asia and that over the long-term these stocks will see dynamic growth." Meanwhile, uncertainty about Japan's economic outlook boosted the dollar against the yen. On Wednesday, Japan's Prime Minister Ryutaro Hashimoto pledged that planned tax cuts to aid the country's ailing economy would indeed be permanent. But market participants said it remains unclear which tax cuts would be permanent and how big the cuts would be. After initially tracking the dollar higher, bonds lost steam as political unrest in Nigeria pushed oil prices sharply higher. Low commodity prices have been a major factor keeping inflation -- which erodes the value of fixed-income holdings such as bonds -- in check in recent months. Bonds also came under pressure as the market makes room for Wednesday's auction of 30-year inflation-indexed bonds. World-wide, stocks rose in dollar terms. The Dow Jones World Stock Index was up 0.80 to 197.42 as of 1 p.m. EDT. In major market action: Stocks advanced. Volume reached 331 million shares on the New York Stock Exchange, where 1,465 stocks advanced and 1,330 declined. Bonds eased. The Treasury's benchmark 30-year bond was down about 1/4 point, or $2.50 for each $1,000 face amount. Its yield, which moves in the opposite direction of its price, stood at 5.62%. The dollar was slightly higher. It was at 139.29 yen and 1.8183 marks, compared with 138.65 yen and 1.8149 marks late Tuesday in New York.