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Dow Skyrockets 140 Points

Investors sent stocks soaring Tuesday after the market shrugged aside President Clinton's admission that he had an improper relationship with ex-White House intern Monica Lewinsky.

The Dow Jones Industrial Average surged 139.80 points, or 1.6 percent, to 8,714.65. Monday, the gauge popped up 149.85 points, or 1.8 percent, in its best percentage showing since June 17.

Mr. Clinton, who appeared Monday night on network television following his grand jury testimony, denied that he committed perjury or asked anyone to cover up the facts.

Tuesday's advance came amid a decision by the Federal Reserve's policy panel to leave short-term interest rates unchanged.

In contrast to Monday's narrow advance, the move was broad, with small- and mid-sized issues performing better than blue-chip shares.

Additionally, trading volume expanded from Monday's pace of activity, yet remained roughly in line with the recent average.

The technology sector was the day's big winner, with investors piling into semiconductor, networking, and computer hardware groups. Internet-related names, though higher, failed to attract sizable interest, as volume was soft in most Web plays.

Elsewhere, a round of solid earnings reports allowed retail stocks to ring up big gains, while the transportation sector drove ahead as major airline concerns set a fare increase.

Meanwhile, financial shares bulled higher on bargain hunting. The stocks' health is important since the sector tends to be a leading indicator of the overall market.

In Tuesday's market highlights:

  • The Standard & Poor's 500 Index rose 1.6 percent.
  • New York Stock Exchange winners beat losers by more than 2 to 1.
  • On the Big Board floor, turnover swelled 17 percent to 689 million shares.
  • The Nasdaq Composite advanced 2.0 percent. Advancing issues led decliners by 24 to 17 in the Nasdaq Stock Market. Volume totaled 745 million shares.
  • The Russell 2000 Index of small-capitalization stocks rose 1.8 percent.
  • The 30-year Treasury declined 5/32, to yield 5.560 percent.