Dow Ends Four-Session Slide, Edges Higher

Blue-chip stocks halted a four-session losing streak Wednesday as depressed prices generated some buying interest, but the smaller-company sector stole the show with a record finish.

The Dow Jones industrial average rose 5.11 to 7,787.33 after recovering from an 85-point slide that briefly put the blue-chip barometer below 7,700.

Broader stock measures also rebounded in the afternoon as bonds recovered from a slide that temporarily sent interest rates toward their highest level since early summer.

The Russell 2000 index of smaller companies rose for the fourth straight session, setting a record close for the first time in three weeks.

“It’s like we’ve reached a moment of truth where if you want to find value, you have to go to the Russell 2000 type of stocks which have not kept pace with the Dow,” said Russ Labrasca, senior vice president at Principal Financial Securities of Dallas.

Advancing issues outnumbered decliners by an 11-to-8 margin on the New York Stock Exchange, with 1,644 up, 1,189 down and 551 unchanged.

Some of the stocks that moved substantially or traded heavily Wednesday:

NYSE

Savannah Foods & Industries, up 2-1/2 at 17-9/16.

The company said late Tuesday it has received a takeover bid valued at $18.75 a share, or $539 million, from rival sugar processor Imperial Holly.

Superior Telecom, up 3-5/8 at 38-1/8.

The maker of telecommunications cable and wire products posted better-than-expected profits for its first quarter ended July 31. New York-based Superior also issued an upbeat outlook with its earnings report after Tuesday’s close.

Ceridian, down 5-15/16 at 37-1/16.

The Minneapolis-based company disclosed plans to sell its defense electronics business and take a one-time $150 million charge to scrap development of a new payroll software product.

NASDAQ

Novell, down 19/32 at 9-3/8.

After gaining more than 10 percent Tuesday on rumors of a takeover bid by IBM, shares of Novell pulled back after the software maker’s chief executive said the company is “not for sale.”

7th Level, up 1-1/4 at 3.

The Dallas-based subsidiary of Bandai formed an alliance with Microsoft to feature 7th Level’s Tamagotchi “virtual pet” game through Microsoft Internet Explorer 4.0.

AMEX

Andrea Electronics, up 5 at 39.

The promotional effort for Microsoft Internet Explorer 4.0, due for release Sept. 30, will include a commemorative edition featuring coupons for $10 off the list price of Andrea’s voice solutions PC headsets.