DOW HITS RECORD 9,033.23

The Dow Jones industrial average bulled its way to a new milestone Monday, closing at more than 9,000 points.

But, without the rise in financial stocks, spurred on by the announcement of a $70 billion merger of financial giants Citicorp, the nation's No. 2 bank, and Travelers Group, the powerhouse broker and insurer, the Dow would have missed the historic marker and lost ground for the day.

The Dow actually passed 9,000 for the first time during the day Friday but settled back at the close, to 8,983.42.

The Dow was led Monday by the financial industry, said Joe Domian, of Edward Jones investment firm at 1749-I Independence.

"Actually, the day's increases were not broad-based," said Domian. "On the New York Stock Exchange, 17 companies experienced decreases for every 13 that showed increases, for a mixed showing."

The Nasdaq composite index staged a sharp retreat as technology stocks sank on news the Justice Department is considering a new antitrust lawsuit against Microsoft. Microsoft shares were down 3 percent in late trading.

The Dow surged up more than 111 points early Monday to 9,094.76. It closed up 49.82 at 9,033.23 in active trading. The 9,000 milestone came a little more than five months after tumbling below 7,000 points amid fears the bull market had run its course. The Dow not only pushed past 9,000 but briefly flirted with 9,100.

While it took more than 76 years for the Dow to gain its first 1,000 points, it took just 189 trading days to move from 8,000 to 9,000. That was the third-quickest move of 1,000 points: It took just 89 trading days to climb from 6,000 to 7,000 and 110 days to move from 7,000 to 8,000.

Domian and Bob Etherton, also of Edwards Jones, at 215 N. Sprigg, are not ruling out the possibility of the 10,000 mark by the end of the year.

"I think that's a real possibility," said Etherton. "I certainly wouldn't be shocked by it, especially if the economy continues to do well and the interest rates stay low."

People shouldn't get too excited with the Monday activity, said Domian.

"It was really sort of a negative day," said Domian. "Some companies took hits."

Bart Ozbun of Merrill Lynch, 1271, N. Mount Auburn Road, noted that Travelers was a Dow company and did experience an 11-point jump Monday, following the merger announcement.

"As long as inflation is under control, I think we'll see the Dow grow," said Ozbun. "We feel the market could remain strong three or four years."

Most stock brokers are still looking at the "10,000 by 2,000" motto."

"The Dow underwent some changes last year," said Ozbun. "Some new growth stocks -- including Wal Mart -- were added. We expect the Dow to increase at a faster pace."

It could hit the 10,000 milestone before 2,000, perhaps in 1999.

All stock brokers, and a lot of investors, are watching for annual reports to see how companies fared in 1997.

It takes less of a lift to move 1,000 points at these elevated levels. The last 1,000-point leap represented a gain of just 12.5 percent for the average of 30 blue-chip stocks. It would take a rise of 11.1 percent to get to 10,000.

Still, the climb to 9,000 is an especially impressive performance considering the market turmoil of late October, as economic problems caused Asian financial markets to collapse, sending shock waves around the globe. The Dow plunged a record 554.26 points on Oct. 27 and fell even further at the open the next day before abruptly changing course.