The Dow Jones industrial average closed up 173.38 points to 6833.59, the second biggest one-day point gain ever. The S&P 500 was up 14.27 points to 774.64. The Nasdaq composite gained 8.79 points to 1212.74.
Communication Workers of America, District 1, Trenton, N.J., agreed to drop a lawsuit against Gov. Christine Todd Whitman over 1994 changes in the law that let the state cut its pension fund contributions.
Ms. Whitman's administration agreed to ensure all vested members will receive pension benefits under the existing formula except in certain circumstances.
The administration also agreed to cut in half the vesting period, to five years, and reduce employee contributions to the pension fund to 4.5% from 5% for the next two fiscal years. The cut in employee contributions would continue if the stock market holds up and the fund generates excess earnings. The agreement will be incorporated in legislation allowing the state to sell pension obligation bonds.
Louis G. Navellier was granted his request for a temporary restraining order against trustees of the small-cap fund he used to manage. Trustees Donald Simon and Kenneth Sletten and MFS, the company hired to take over management of the fund, are forbidden from issuing a proxy on the future of the fund or calling a shareholder meeting.
A U.S. District Court judge in northern California granted the order. An April 24 hearing with representatives of Navellier Investment and MFS will determine when each side can hold a proxy meeting.
FASB plans to issue revised disclosure rules for pension and post-retirement benefit obligations for public comment by the end of May. The changes would modify footnote disclosure under FAS 87 and 106. Under the proposal, some current disclosure items would be eliminated, but additional information would be required about changes in the value and size of assets and benefit obligations, and contributions and benefits paid.
The exposure draft will be open to public comment for 60 days after issuance.
Suffolk County's 457 plan, Hauppauge, N.Y., will issue RFPs in July for investment managers for the $175 million plan, said Ed Erickson, vice chairman of the board.
The three-year contracts of T. Rowe Price and Mutual of America, expire June 30, 1998. Both firms will be part of the in-house search. A decision is expected early next year.
Swarthmore College endowment, Swarthmore, Pa., is searching for an international small-cap equity manager, said Suzanne P. Welsh, treasurer.
The endowment, which has more than $600 million in assets, hopes to make a decision by July.
Further details were unavailable.
Lincoln National Corp.'s earnings increased 7% for the first quarter despite a sharp drop in earnings for its investment management units. Revenue for the quarter was $1.7 billion, up from $1.6 billion for the same period in 1996.
The investment management segment, made up mainly of Delaware Management Holdings, Lynch & Mayer and Vantage Global Advisors, reported first-quarter operating income of $500,000, an 87% drop from $3.8 million in the first quarter of 1996. LNC said the decrease was due mainly to lower earnings from Lynch & Mayer and the costs of expanding Delaware's retail mutual funds.