Dow rides to new high on backs of Disney, Procter & Gamble

January 29, 1992

NEW YORK -- The Dow Jones average of 30 industrials closed at a record high yesterday based on the fortunes of two large corporations: Walt Disney and Procter & Gamble.

The two companies, major components of the Dow index, saw their stocks soar yesterday following strong fourth-quarter earnings reports. They carried the Dow into record territory, closing up 31.53 at 3,272.14. That topped the previous record close of 3,264.98 set Jan. 17.

But the dramatic gains weren't mirrored in the broader market, where advancing issues narrowly outnumbered declines on the New York Stock Exchange. Other measures of the broader market were mixed. The Standard & Poor's index of 500 stocks lost 0.03, to 414.96, and the New York Stock Exchange index rose 0.01, to 228.95.

William M. LeFevre, senior vice president at Tucker Anthony in New York, said the Dow would have gained only about 4.92 points without the gains of Disney and Procter & Gamble.

"The two stocks in the Dow make it look much larger than what it really was," Mr. LeFevre said.

Disney jumped 9, to 141 1/2 , after it reported late Monday fourth-quarter earnings of $208 million, up 22 percent from the year-earlier period. Procter & Gamble, whose fourth-quarter earnings advanced 8 percent, rose 5 1/2 to 102 5/8 .

Eugene Peroni, market analyst for Janney Montgomery Scott in Philadelphia, said the strong bullish sentiment in the market "was feeding upon itself." Stock prices were running the danger of going too far, too fast ahead of President Bush's State of the Union address, he said.

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