December 20, 1996

Blue-Chip Stocks Surge The Dow Jones industrial average climbed 126.87 points, to 6,473.64, its second-best point increase in history. The rally this week may help dispel some of the chill from a selloff earlier this month. Page D1. Popular, but Not Proper? The two most popular shows on television, ''E.R.'' and ''Seinfeld,'' may sometimes be labeled inappropriate for some children under the industry's new rating system. Page A18. Chips Ahoy, Mate In choppy seas and under rainy skies, a gambling ship took its maiden voyage out to international waters from a Brooklyn pier. Mayor Giuliani was not happy. Page B1. Ex-Trader Wins a Round An arbitration panel has rejected Kidder, Peabody's accusation that Joseph Jett, a former trader, engaged in ''fraud, breach of duty and unjust enrichment.'' But Mr. Jett still faces S.E.C. charges. Page D1. Cruise Line Indictment Royal Caribbean Cruises has been indicted on charges of dumping waste oil from some of its ships and falsifying log books to hide its activities. Page A26.

New Jersey Legislature, attempting to end the 26-year legal battle over gap in education quality between rich and poor school districts, approves bill that would set broad curriculum standards and commit the state to help each district spend what it takes to meet those standards (New Jersey Daily Briefing) (S)

In-depth profile of David H Komansky, president of Merrill Lynch & Co, who next week succeeds Daniel P Tully as chief executive; Komansky discusses his responsibility in completing Merrill's expansion from domestic powerhouse to major factor in world of investment banking; his recent role in Merrill's acquisition of Smith New Court PLC discussed; his photo; charts; financial graphs (L)

New Jersey Casino Control Commission approves plan by Donald Trump to run two of his Atlantic City casinos, Trump Plaza and World's Fair, under one operating license (New Jersey Daily Briefing) (S)

Police arrest Joseph Pennello and Jaclyn Feeney for robbing Hudson United Bank in New Jersey after a bank employee and concerned citizen chase the fleeing perpetrators for seven miles (New Jersey Daily Briefing) (S)