Thursday, January 7, 1999

Stock prices hit heady highs


Influx of money sends all indexes on a joy ride

BY URSULA MILLER
The Cincinnati Enquirer

        The New Year's party on Wall Street continues.

        All the major stock-market indexes notched record highs Wednesday, with the widely watched Dow Jones Industrial Average powering through the 9400 and 9500 marks to close at 9544.97, a one-day gain of 233.78 points or 2.5 percent.

        “The market is in an unstoppable mode right now,” said Glen Trematore, a day trader at Bright Trading in Blue Ash. “You have a broadening of strength and everything that could be positive is. Low inter est rates. Low inflation. Great liquidity, with tons of money flowing into the market.”

        The broader Standard & Poor's 500 Index claimed its second-straight record, closing up 27.56 at 1272.34, or 2.2 percent. Ditto on Nasdaq. Home to many high-flying technology and Internet stocks, the Nasdaq finished at 2320.86, up 69.59 or 3.1 percent.

        Even the Russell 2000, a key barometer for small stocks that has markedly lagged big-stock indexes in the last year, gained ground. It closed at 427.79, a gain of 5.9 points or 1.4 percent.

        He expects more “explosive moves” upward and pullbacks through the end of the month. He predicts the Dow will get close to 10,000 by February.

        “It's a key psychological barrier,” he said.

        Ron Bates, a senior portfolio manager at Scudder Kemper Investments in Cincinnati is worried about the valuation of stock prices versus corporate earnings. The S&P's price-to-earnings ratio is 33, vs. a historical average of 18.

        “We're a little bit concerned about the market's level and its sustainability. If you look at the market valuation. It's insane,” he said.

Today's market news from Associated Press



- Stock prices hit heady highs
Milacron online, on the road
Milacron buys German drill manufacturer
Hudepohl beer brands being sold
New postal rates
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Sign up for financial seminar
Chairman of Lazarus group resigns
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