Starr-gazing investors
boost Dow 180

Despite a worldwide sell-off earlier
in the day, U.S. markets soar

NEW YORK -- Stocks rose sharply in shaky trading today, with the Dow industrials up almost 180 points.

Wall Street found encouragement in corporate profitability pronouncements that overcame fears surrounding global economic strife and unease over the fate of the Clinton administration on a day when Independent Counsel Kenneth Starr's report outlined possible grounds for impeachment in graphic detail.

The Dow Jones industrial average leaped 179.96 points, or 2.4 percent, to close at 7,795.50. It was the ninth-largest point gain ever.

Trading was heavy, with 817.7 million shares changing hands on the New York Stock Exchange, but below yesterday's 875.7 million.

Wall Street's gains interrupted a worldwide selling spree, helping to cut losses in late trading on European markets but coming too late to ease the pain in Asian exchanges. Tokyo's blue-chip index had its biggest loss of 1998.

Analysts said investors, unsettled by Wednesday's unexpected delivery of the Starr report to Congress, may have been relieved to see that there were no major surprises. The report specifically accused Clinton of obstruction of justice, witness tampering, abuse of his presidential powers and perjury -- both in his grand jury appearance last month and in his sworn deposition last January in the Paula Jones lawsuit.

It did not allege any impeachable offenses by Clinton from other parts of Starr's probe, including the Whitewater land deal or the firing of White House travel office employees. But the report said those aspects of the investigation were continuing.

The Dow got help from a surge by American Express Co., which said it has not been hit hard by worldwide market turmoil and was sticking with its earnings targets.

The Dow's slide yesterday, on top of a 155.76-point drop Wednesday, more than wiped out Tuesday's record gain of 380.53 points. But today's rebound left the Dow up 155.25 points for the holiday-shortened week. That snapped a precipitous slide of 893.40 points, or 10.5 percent, over the previous two weeks.But the Dow still was 16.5 percent below the July 17 record of 9,337.97 and 1.4 percent below where it began 1998.

The technology-heavy Nasdaq index recorded its fourth-biggest point gain ever, helped by encouraging earnings statements after markets closed yesterday from Intel Corp. and Oracle Corp.

Still, traders remained on edge because of political and economic crises.

Besides, the Starr report, markets continued to be unsettled by economic problems that now are plaguing Latin American financial markets after roiling Russia and Asia.

On the London Stock Exchange, Europe's biggest market, the Financial Times-Stock Exchange 100-share index closed with a loss of 0.4 percent after being down 1.8 percent at midday.

Many European investors were staying out of the market, figuring much of the information might come out after London had finished trading for the day. "I don't know if people will be brave enough to do anything today," said Peter Caulkett, a stock salesman at the brokerage Teather and Greenwood. "No one knows what will be in Starr's report."

Key market indexes were off by 0.2 percent in Frankfurt, Germany, and down 0.3 percent Paris, both well above the day's lows.

The damage was heavier on big Asian markets.

Tokyo's 225-issue Nikkei Stock Average plummeted 749.05 points, or 5.12 percent, to close at 13,916.98. It was the largest one-day point fall this year. The finish was just barely above the Nikkei's 12-year closing low of 13,915.63 set on Aug. 28.

Hong Kong's blue-chip Hang Seng Index fell 3.5 percent.

There was some encouragement, however, as Brazilian shares rose 13 percent today after the government raised interest rates sharply. Trading on the Sao Paulo Stock Exchange, Latin America's largest, was halted twice in yesterday's frenzied session, when shares plummeted 15.8 percent.

On Wall Street, the Standard & Poor's 500 rose 28.87 to 1,009.06, and the Nasdaq composite index rose 56.31 to 1,641.64

Advancers led decliners by a 2-to-1 margin on the New York Stock Exchange, with 2,064 up, 1,000 down and 462 unchanged. The NYSE composite index rose 12.26 to 500.03, and the American Stock Exchange composite index rose 6.98 to 613.21.

The Russell 2000 index of smaller companies rose 8.65 to 353.62.

The price of the Treasury's main 30-year bond today fell 1/2 point, or $5.00 per $1,000 in face value, while its yield rose to 5.23 percent from 5.20 percent late yesterday.

Yesterday's yield was the lowest since the government began issuing the 30-year bond on a regular basis in 1977.