Stocks Edge Higher In Slow Session

Stocks rose modestly Monday, but investors were reluctant to place any big bets before today’s Federal Reserve meeting on interest rate policy, making it the slowest day of the year on Wall Street.

The Dow Jones industrial average stumbled in the morning, threatening to extend Friday’s nearly 140-point slide, but steadily recovered and rose 34.21 to 7,228.88. Broad-market indicators also turned positive in the afternoon.

More telling than the day’s slim gains, however, was the unusual calm before the potential storm that could follow today’s Fed deliberations on the economy.

Analysts and investors remained divided over whether inflationary pressures seem threatening enough to merit another economy-slowing increase in interest rates by the central bank. But as the culmination of a two-month guessing game that’s sent the markets sliding and soaring, today’s meeting may actually prove anti-climatic.

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

NYSE

Mobil, up 2-1/2 at 136-5/8.

Amoco, up 2-3/4 at 87-1/2.

The two oil giants have been discussing a $20 billion merger of their refining and marketing operations outside of Europe, London’s Sunday Telegraph reported, citing two unnamed executives. Both companies declined comment.

NASDAQ

Global Village Communication, up 1-5/16 at 4.

The company began shipping a new line of faster modems for Macintosh and Windows systems. Global Village is based in Sunnyvale, Calif.

Pairgain Technologies, down 1-3/4 at 15-1/2.

The Internet connectivity concern fell again on fears of pricing pressures in the HDSL market, the Dow Jones News Service reported. HDSL, or high-bit rate digital subscriber line, enables high-speed data downloading via telephone.

Netscape Communications, up 3/4 at 30.

Oracle agreed to buy Navio Communications a company formed by Netscape last year to develop Internet software for consumer electronics products.

Quality Dino Entertainment, down 1/2 at 4.

The Canadian distributor of recorded music, video and consumer products expects to report a loss of $3.7 million for its third quarter ended, including one-time charges of $1.7 million for a litigation settlement and royalty costs. Quality Dino said its results were hurt lower-than-anticipated sales and profit margins.