DOW INDUSTRIALS TOP 5,000 FOR FIRST TIME

~Correction: Betty Domian should be Donna Domian.

The Dow Jones industrial average surged into record territory Tuesday, topping the milestone 5,000 mark for the first time in history.

"It closed at 5,023.55," said Betty Domian, a stock investment consultant with Edward D. Jones and Co. here. "That's a one-day jump of more than 40 points from the Monday total."

The Dow average actually topped 5,000 (5.003) briefly Monday, but closed well under that mark.

"It wasn't really that surprising at this point," said Steve Schneider of A.G. Edwards and Sons Inc. "The market is continuing to respond to low rates."

Neither Domian nor Schneider expected the Dow to hit 5,000 in 1995.

"It closed at 3834.44 going into this year," said Schneider. "I never thought it would hit 5,000 unit only recently."

"The 1995 increase is at 31 percent for the year," said Domian. "That's really something."

The Dow was about 1,200 when both Schneider and Domian became stock brokers in the early 1980s.

"I remember when it hit 2,000 for the first time," said Domian. "That was in January of 1987."

Other milestone totals for the Dow include 3,000 on April 17, 1991, and 4,000 on Feb. 23, 1995.

"It's been a phenomenal period in the stock market since I joined in 1982 ... from about 1,200 to 5,000," said Schneider.

Fueling Tuesday's 40.44 increase was a rally by a number of Dow components that helped push the blue-chip index well past 5,000. Analysts said some computer-generated buying helped thrust the Dow average to the new highs.

Leading the drive was Caterpillar, a Peoria, Ill.-based heavy equipment maker that was upgraded today by Smith Barney and may be nearing an end to a 17-month strike with the United Auto Workers.

Other blue-chip stocks, including IBM, Aluminum Co. of America, McDonald's and Coca-Cola, also sent the Dow industrials soaring.

Broad market indexes were mixed, with the Nasdaq closing lower due to weakness in some technology shares. "Nasdaq reached its peak in September," said Domain.

A sell-off of technology issues weighed in on the market for much of the day. That sent many investors quickly replacing technology shares with blue-chip stocks, which are perceived as better able to weather an economic or political storm.

Among biggest losses in technology stocks, Dell Computer fell after it was reportedly downgraded by Morgan Stanley and Co. The personal-computer maker late Monday reported strong third-quarter earnings, but said its profits may not rise in the next quarter. Sun Micro Systems and Alter Corp. also dropped.

Some of the movement away from the technology sector headed into oil stocks. The oil stocks were ahead for much of the day as winter weather approaches and OPEC ministers meet in Austria to debate how much oil to pump next year.

"More baby boomers are starting to invest now," said Domian. "And, with interest rates lowering, they are looking for good investments with solid stocks." The baby boomers, who are nearing 50 years of age, are seeing headlines about Social Security, said Domian. "They're not sure that the SS system will be as good for them as it is for their parents."

Domian is also optimistic that national legislation is in the works to lower capital gains taxes.

"Lower capital gains taxes and expanding IRAs will be a boon to the markets," she said.

Declining issues led advancers by nearly 5 to 4 on the New York Stock Exchange Tuesday, with 1,287 down, 1,035 up, and 764 unchanged.

Big Board volume totaled 405.85 million shares as of 4 p.m., vs. 335.48 million on Friday.

The NYSE's composite index rose 1.31 to 320.23. The Standard & Poor's 500-stock index was up 3.41 to 600.26.

The Nasdaq composite index dropped 6.26 to 1,023.21.

At the American Stock Exchange, the market value index slipped 3.04 to 528.55.