Originally created 03/09/99

Dow fails to reach new high



NEW YORK -- The Dow Jones industrials retreated Monday from last week's record high as investors took some profits, but the broader market indexes shot higher on renewed strength in technology shares.

The Dow lost 8.47 points to close at 9,727.61. The blue-chip index opened higher, then retreated as much as 61.75 before regaining some of the loss in the final hour of trading.

"We're just giving back some of the gains of last Thursday and Friday," said John Shaughnessy, chief investment strategist at Advest Inc. "But the backdrop of this market continues to be very, very solid."

The Standard & Poor's 500 index added 7.26 to reach a record 1,282.73, beating its previous closing high of 1,279.69 set on Jan. 29. The Nasdaq composite climbed 60.51 to 2,397.62, but is still nearly 113 points below its all-time closing high of 2,510.09 made on Feb. 1.

Technology stocks rallied after a weak performance last week. Computer-chip maker Intel reached a preliminary agreement to settle Federal Trade Commission charges that it had illegally threatened to withhold critical information about its Pentium chip unless three other companies handed over secret information about their products.

Intel shares climbed 5 to 119, sparking a broad rally in Nasdaq-traded computer stocks. Dell Computer, for example, advanced 2 to 45 in leading volume in Nasdaq trading. On the New York Stock Exchange, Dow component IBM rose to 178.

But in general on the Big Board, two days of spectacular back-to-back gains in the Dow couldn't hold. The Dow added a total of 460 points on Thursday and Friday, closing the week at a record 9,736.08.

Rising bond prices helped push up stocks Friday and were higher again Monday. The benchmark 30-year Treasury bond was up 15.63 cents per $1,000 in value late Monday. Its yield, which moves in the opposite direction to price, was 5.59 percent, down from 5.60 percent on Friday. But that wasn't enough to help blue-chip stocks.

Oil stocks rose as oil prices continued to climb on signs that worldwide oil production will decline. Crude oil for April delivery settled at $13.63 a barrel, up 33 cents. Exxon added 1¨ to 70 15/16.

The stock market was also helped by some takeover news. Belgian-Dutch financial services group Fortis agreed to pay $2.8 billion, or $55 a share, for American Bankers Insurance Group Inc. a Miami-based insurer. ABI's shares rose 5 to 52.

Allied Waste Industries Inc. said it would pay $7.3 billion, or $45 a share, for larger rival Browning-Ferris Industries Inc. Browning Ferris shares climbed 4 to 38, while Allied Waste's shares added 1 15/16 to 16 15/16.

On the New York Stock Exchange, declining issues outnumbered advancers by a 6-to-5 margin. Consolidated Big Board volume was moderately heavy at 879.77 million shares, below Friday's pace.

The NYSE composite index rose 0.96 to 604.10, and the American Stock Exchange composite index rose 4.77 to 712.18. The Russell 2000 index of smaller companies rose 2.05 to 400.06.

In overseas stock markets, the Nikkei 225 index in Tokyo eased 0.77 percent. In Europe, the DAX index in Frankfurt fell 1 percent, the CAC in Paris eased 0.32 percent, but the FT-SE 100 index in London inched 0.05 percent higher.