Indexes, Crude Oil Prices Up

Energy-related issues led a late rebound Wednesday on Wall Street to boost all major stock measures to record highs, as crude oil prices rose sharply after sinking to a nine-year low in recent days.

The Dow Jones industrial average erased a 43-point drop and rose 25.41 to 8,775.40 for its third straight record close.

Broad-market indicators also mounted an afternoon recovery for the second straight day, with the technology-heavy Nasdaq composite index setting a new high despite more worrisome news from the high-tech sector.

The dollar hit a two-month high against Japan’s yen, but Treasury bonds were mostly weaker.

“We remain in a very powerful bull market, but the intensity of the advance is tiring,” said Alfred Goldman, analyst at A.D. Edwards & Sons.

Stocks opened the session lower amid news that another leading technology company expects to post disappointing profit for the first three months of 1998.

The announcement late Tuesday by Bay Networks, a networking technology concern, came a day after chip maker Micron Technology reported a wider than expected loss for its latest quarter, and less than two weeks after a spate of profit warnings by Intel, Motorola and Compaq Computer.

“What the market is telling us is that we’re nearing the end of the pre-announcement season and the fundamental backdrop hasn’t changed,” said Tony Dwyer, chief equity strategist at Ladenburg Thalmann & Co. “Investors are aware that the first quarter is going to be tough, especially in technology, so it’s already discounted in the market.”

Advancing issues outnumbered decliners by an 8-to-7 margin on the New York Stock Exchange in heavy trading.

The Nasdaq composite index set a new high, rising 8.98 points to 1,788.28. Standard & Poor’s 500 stock index rose 5.07 to a record 1,085.52.

The Russell 2,000 index of small-name companies gained 1.07 points to close at 472.18, also a record.

In the bond market, the bellwether 30-year Treasury bond fell, while its yield edged up to 5.90% from 5.89% on Tuesday.

Among Wednesday’s highlights:

* Energy-related shares--weighed down in recent days as a four-month plunge in oil prices reached 25%--posted big gains, while crude jumped in futures trading amid hopes that OPEC might cut back on production.

The Philadelphia Oil Service Sector Index rose 6% as crude climbed $1.13 to $14.34 a barrel on the New York Mercantile Exchange.

Exxon rose $1.69 to $64.63 and Chevron rose $1.56 to $83.63 as two of the Dow’s strongest components, while oil-drilling companies--including Rowan, up $1.94 to $37.25--were prominent gainers on the most active list.

* The Dow also drew a boost from consumer product issues: Coca-Cola rose $2.38 to $74.81, and Procter & Gamble rose $1.19 to $84.69. J.P. Morgan, which led the Dow on Monday and Tuesday with a combined gain of more than 10 points, the equivalent of about 40 Dow points, slid $2.25 to $133.

* Paper companies fell after several analysts lowered earnings estimates for International Paper, citing lower sales in Asia and lower prices from competing Asian producers. International Paper fell $1.75 to $50.

* Airlines fell on expectations that rising crude prices will push up fuel costs. AMR fell $2.94 to $142, and Delta Air Lines fell $2.75 to $120.13.

The dollar ended at 130.11 yen in late New York trading, up from 129.64 yen Tuesday.

Overseas, London’s FTSE-100 index notched a record close, up 1.18%. Tokyo’s 225-share Nikkei index dropped 2.22%.

Market Roundup, D8