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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (34503)	10/11/1998 10:37:00 PM
From: Night Writer	Respond to of 97611

Dow Gains on Momentum, Fed Rumor; Fins, Techs Bounce NEW YORK, Oct. 9 /PRNewswire/ -- U.S. share prices rose sharply Friday extending Thursday's late rally and building further hopes that a bottom has been found, Market News International reported. The Dow Jones Industrials rose 167.61 to 7,899.52 on heavy New York Stock Exchange volume of 876 million shares. The S&P 500 rose 24.88 to 984.32. The broader market also showed life, recovering a portion of their steep losses over the week. NYSE advancers led decliners 1,925 to 1,243 and the Russell 2000 jumped 8.12, or 2.6%, to 318.40. Rumors that the Federal Reserve might cut interest rates caused a mild stir in the financial markets and helped stocks gain in initial trading. The fact that the Fed just lowered rates on Sept. 29 despite full employment, that a cut might further depreciate the already beat-up dollar, and that such a move might telegraph panic at the Fed board did little to temper the enthusiasm in what many dealers describe as a manic-depressive market. But dealers said momentum was the session's strongest feature after the Dow rallied sharply late Thursday, cutting a 273-point loss to only 9 points by the close. Dealers reported strong bidding from institutions, raising hopes that the worst may be over. Jitters, however, still dominate the market. Worries remain over the further deleveraging of hedge funds and over the health of corporate profits. Third-quarter earnings and fourth-quarter forecasts begin next week. Notable warnings from Procter & Gamble, Gillette and Citigroup have already lowered expectations, setting the market up for gains on positive surprises, analysts said. Financial stocks, a sector expected to post the most significant profit declines in the third quarter, bounced strongly. Gains were attributed to bargain hunting following the decimating losses in the sector and rumors that Warren Buffett has been buying shares in leading brokerage Merrill Lynch, which rose 3 1/8 to 45 5/8. Other gainers included BankAmerica up 4 1/8 at 53 3/4, Bankers Trust up 4 3/8 at 58 7/8, and JP Morgan up 4 3/4 at 84 5/8. Technologies also recovered, a sector that has also been bruised badly over the past two months. Compaq up 2 3/8 at 26 7/16, Cisco up 3 3/8 at 50 1/16, and Intel up 5 3/8 at 83 13/16. SOURCE Market News International CO: Market News Service ST: New York IN: FIN SU: 10/09/98 17:17 EDT prnewswire.com