WALL STREET

DOW RISES TO 3 1/2 -YEAR HIGH

The stock market barreled higher yesterday, sending the Dow Jones industrials to a new 3 1/2 year high as two Wall Street firms reported better-than-expected earnings and a brokerage gave tech bellwether Intel Corporation a ratings upgrade.

The good earnings news, along with the Intel upgrade, set a positive tone for the market throughout the session. Stocks also benefited from the traditional “Santa Claus” rally, as mutual funds and money managers shuffle their portfolios before the year ends.

Stocks have climbed steadily since the presidential election, with good economic data and positive profit forecasts for 2005 assuring investors of further returns. The Dow rose 97.83, or 0.92%, to 10,759.43. It was the best close for the Dow since June 13, 2001, surpassing the previous 2004 high of 10,737.70 set on February 11.

– Associated Press

IN THE COURTS

BROKER EXPECTED TO TRY TO REPAY ALLEGEDLY STOLEN MONEY

A stock broker who claimed he managed $1.2 billion for clients who included star athletes and celebrities is trying to negotiate a plea and repay the more than $4 million he allegedly stole, lawyers confirmed yesterday.

The broker, Calvin R. Darden Jr., 30, surrendered last week after he was indicted on grand larceny, fraud and other charges related to alleged thefts from Smith Barney, Wachovia, Canadian mutual fund AIC Ltd., and an elderly investor.

During Mr. Darden’s appearance yesterday in Manhattan’s State Supreme Court, Justice Renee White said defense and prosecution lawyers were “working out a disposition” of the defendant’s case. That meant the lawyers were plea bargaining.

Mr. Darden is charged with first- and second-degree grand larceny, scheme to defraud, falsifying business records and other charges. He faces up to 25 years in prison if convicted on the top count of first-degree grand larceny.

The judge let Mr. Darden, of Glen Cove, Long Island, remain free on $1 million bond. She scheduled Darden next court appearance for February 1.

– Associated Press

YUKOS PLAN TO SUE FOR ASSETS PROMPTS OIL CONCERN OAO

Yukos Oil Company, Russia’s largest oil exporter, plans to sue to recover more than $20 billion after the government sold the company’s main unit, prompting concern cargoes may be seized by foreign courts.

OAO Yuganskneftegaz, a unit that pumps 11% of Russia’s oil, was sold December 19 for $9.3 billion to OOO Baikal Finance Group, a company whose owner is undisclosed. Without knowing who backs Baikal, traders may be reluctant to buy Yugansk’s oil, said analysts including Julian Lee at the London-based Centre for Global Energy Studies.

Oil prices rose to record highs this year, in part on concerns the conflict between President Putin’s government and Yukos may lead to a cut in supplies. A vow by Yukos management to fight anyone entering into transactions related to its assets, including oil buyers, may prompt customers to seek alternative supplies.

“It’s a very disturbing and uncertain situation,” Gyorgy Mosonyi, the co-chief executive officer of Hungary’s Mol Rt., which gets more than half its crude from Yukos, said at a press conference in Bratislava yesterday. He said Russian leaders including Putin have promised supplies will continue.

– Bloomberg News