Ground Battle Success in Gulf Lifts Dow by 50

Wall Street blue chips soared more than 50 points today, pushed up by reports of a victory by allied forces in a battle in Saudi Arabia and government figures pointing to an improving economy.

The Dow Jones industrial average was up 50.50 points at 2,713.12. Volume on the New York Stock Exchange was a brisk 226.79 million shares, and advancing stocks outpaced decliners by a wide 4-1 margin.

Prices rose as positive reports came in of the results of the first ground fighting between Iraqi forces and U.S. Marines in Saudi Arabia.

On the domestic front, the Commerce Department reported that the index of leading economic indicators rose 0.1 percent in December, ending a run of four straight monthly declines.

The index is not considered a precise month-by-month measure of where the economy is headed. Brokers said it would take more than a single uptick to signal an impending end to the recession.

Nevertheless, the report added to a recent accumulation of evidence that the economy was at least levelling off after taking a dive in the waning stages of last year.

Among actively traded blue chips, International Business Machines rose 2 to 126 1/2; American Telephone & Telegraph 1/2 to 32 1/8; American Express 1 to 21 5/8, and Ford Motor 1 to 27 3/4.

Compaq Computer added 2 1/8 to 65 3/8. The company reported fourth-quarter earnings of $1.51 a share, up from 92 cents in the corresponding period a year earlier.

John Brooks, a technical analyst at Davis, Mendel & Regenstein, said investors are quick to take cash off the sidelines when they see the market surging.

“At 2,600 on the Dow, there’s pressure to move in. At 2,650 there’s more, and at 2,700, the pressure is intolerable.”

Traders and analysts also said initial enthusiasm came from President Bush’s State of the Union speech Tuesday night.