Blue-Chips Rally on Wall St.

Stocks rallied today, boosted by renewed interest in technology issues and optimism about interest rates. In mid-day trading, the Dow Jones Industrial Average was up 78.98 points at 7,348.64. The rise of 50 points before midday prompted the New York Stock Exchange to set curbs on computer-driven trading. Technology stocks, hurt recently by fears about demand for personal computers and several earnings warnings from hardware makers, bounced back. The Nasdaq composite index, heavily weighted with tech stocks, also rose, advancing 13.51 points to 1,393.18.

Weekly Jobless Claims Jump

The government says the number of Americans entering unemployment lines for the first time jumped by 19,000 last week. The Labor Department reported that initial claims rose to 337,000 in the week ended May 31. That figure compared with downwardly revised claims of 318,000 the week before and was the highest level for initial filings since the week ended May 3, when claims reached 348,000. Last week's figure was shortened by the Memorial Day holiday. The four-week moving average, which is usually considered a more accurate gauge because it smooths out weekly swings in the data, fell to 323,750 from a downwardly revised 326,000 the week before.

Drug Companies Swap Brands

Pharmacia & Upjohn and Johnson & Johnson said today they agreed to swap several brands of over-the-counter drugs in a deal designed to reinforce the market positions of both pharmaceutical firms. A Pharmacia spokesman said the deal did not involve financial terms. Pharmacia's U.S. Consumer Healthcare unit said it acquired Nasalcrom, a nasal spray for allergic rhinitis, and PediaCare, a line of children's cough and cold products, from J&J's McNeil Consumer Products unit. It also took over Micatin, an anti-fungal application for athlete's foot, from J&J Consumer Products. In exchange, New Brunswick, N.J.-based J&J said it acquired Motrin IB pain reliever and Mycitracin, an antibiotic ointment, from Pharmacia.

Humana to Buy ChoiceCare

Managed health care company Humana Inc. says it has agreed to acquire ChoiceCare Corp., a health maintenance organization in Cincinnati, for $250 million cash. Humana said it had signed a definitive agreement to buy all outstanding Choicecare common shares for $16.38 each. The news comes two days after Humana reported its purchase of Physician Corp of America in a deal worth about $400 million. The two acquisitions will boost Humana's membership to 6.2 million from 4.8 million, and increase its premiums to $8.5 billion annually from $6.8 billion.

Dow Jones to License Index

Dow Jones & Co. said today it would license the Dow Jones Industrial Average, the world's most widely watched stock index, for investment products for the first time in the barometer's 101-year history. Dow Jones said it licensed three exchanges to sell investment products based on the DJIA. Dow said it expects DJIA products to begin trading some time in the fall and that it expects to award other DJIA licenses at a later date, but did not provide details. The Dow industrial average includes 30 blue-chip stocks and is widely viewed as a barometer of the U.S. stock market. Introduced in 1896, the average is the oldest continuing U.S. market index.

Circuit City Shares Drop

Shares of Circuit City Stores Inc. lost almost 9 percent today after the electronics retailer warned it expected a 25 percent drop in first-quarter earnings for its Circuit City unit. The stock lost $3.375 to $34.50 in afternoon trading on the New York Stock Exchange, where it was one of the most heavily traded issues. Circuit City Chairman Richard Sharp said that, while the company's sales for the three months ended May 31 met expectations, its merchandise mix and promotional environment produced gross profit margins below expectations.

Harcourt Deal Complete

Harcourt General Inc. said today it has successfully completed its tender offer for all shares of National Education Corp. at $21 per share in cash. About 34.6 million, or 96 percent, of National Education's 36 million outstanding shares tendered in the offer, which expired yesterday. Harcourt, based in Chestnut Hill, Mass., said it would begin payment for the accepted shares promptly. National Education, a leading provider of off-site professional training, will give Harcourt another distribution channel for its educational books.

EU Probing IBM Deal

The European Commission said today it was probing a series of agreements between computer giant IBM and Italian telecommunications group Stet. It said the agreements were submitted for regulatory approval in the European Union on April 10 under EU rules banning accords that restrict fair competition or abuse of a dominant position. Under the terms of the alliance announced in December, IBM appointed Telecom Italia SpA, a subsidiary of Stet, to market on a non-exclusive basis IBM Global Network services in Italy, the Commission said.

Republic Buys 3 Solid Waste Co.'s

Republic Industries Inc., led by Florida billionaire Wayne Huizenga, said today it has acquired three solid waste companies for a total of about $60 million in stock. The three companies, National Serv-All, AAA Disposal and Elliott's Agri-Service Inc., were privately held and had combined 1996 revenue of about $38 million, Republic said. The company intends to account for the deals as poolings of interests. Republic has been expanding rapidly through the acquisition of automotive retailing, rental and financial services companies, as well as solid waste companies.

Insurance Co. Restructuring

Insurance company Riscorp Inc. said today it will reduce its work force by 17 percent as part of a reorganization to refocus its operations and reduce expenses. The company said it plans to refocus its operations around its core managed workers' compensation insurance business. It said it stopped writing new business owners' policies as of June 1 for a property casualty line it entered in January 1996. In all, the move will eliminate about 141 positions, including 59 employees and management personnel in its Sarasota headquarters. Prior to the reductions, Riscorp employed 516 people in its Sarasota headquarters and 836 companywide.

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