STOCKS surged on the first day of the second quarter yesterday on a burst of buying ignited by major merger deals and a big gain in General Motors, a component of the Dow Jones industrial average.
The New York Stock Exchange's limits on programme trading was activated after the index gained 50 points late in the session.
In the broader market, advancing issues beat decliners 1,450 to 893 on moderate volume of 390.2 million shares on the NYSE.
"We had some merger excitement and a benign purchasing managers' report that indicated the economy is not on a tear," said Mr David Shulman, Salomon Brothers' chief equity strategist.
The National Association of Purchasing Management said its March index of industrial activity rose slightly to 46.9 from 45.2 in February, pointing to some improvement.
