Stocks climb after rise in dollar Dow up 10.80


September 10, 1992|By Bloomberg Business News

NEW YORK -- U.S. stocks advanced after a rise in the dollar, gaining strength from the low level of long-term interest rates.

The Dow Jones industrial average rose 10.80, to 3271.39, after falling more than 31 points in the prior two sessions.

Advancing common stocks outnumbered declining issues by a margin of more than 7-to-6 on the New York Stock Exchange. Trading was moderate, with about 174 million shares changing hands.

"The stock market received a boost from the dollar, which is up almost 2 pfennigs against the Deutschemark," said Daniel Marciano of Dillon, Read & Co.

While yesterday's rise in stocks was minimal, the market is showing some signs of stabilizing, Mr. Marciano said. However, concerns about the economy, the election and the weak dollar aren't going away, he said.

The yield on the 30-year Treasury bond is hovering at its lowest level in six years, about 7.24 percent. At the same time, institutional investors are holding ample amounts of cash, which will limit any big drop in the stock market, Mr. Bloch said.

Structural Dynamics Research, Sun Microsystems, General Motors, Picturetel Corp. and Chemical Banking were the five most actively traded stocks on the U.S. Composite.

Structural Dynamics fell 4 5/8 , to 10 1/2 , after the company said third-quarter earnings and sales will fall below investors' expectations. The company tied the earnings shortfall to the recession, which caused a business slowdown in the United States and Japan. Analysts at Goldman Sachs and Alex. Brown & Sons cut earnings estimates.

Sun Microsystems gained 1 5/8 , to 29 7/8 . An analyst at Goldman Sachs boosted his fiscal 1993 earnings estimate yesterday morning to $2.30 a share from $2.15.

Picturetel rose 1 1/4 , to 14 1/4 , on reports that Kyocera Corp. increased its stake in the company. Kyocera, a Japanese manufacturer of ceramic products, is rumored to have recently raised its stake in Picturetel by 600,000 shares, said CNBC reporter Dan Dorfman.

Chemical Banking declined 1/2 , to 31, after Salomon Brothers removed the stock from its "buy" list and cut earnings estimates, citing concerns about the bank's credit quality.

Radius Inc. fell 2 1/4 , to 4 5/8 , on reports that the company expects fourth-quarter earnings to fall "substantially" below the 13 cents a share earned last year. Radius, which makes products that enhance the power and performance of Macintosh and other personal computers, said low demand and price pressures will result in reduced revenue and earnings.

Campbell Soup advanced 2 3/8 , to 39 3/8 . The company said fourth-quarter earnings rose 29 percent to $109.2 million, or 44 cents a share, from $84.7 million, or 33 cents a share. The improvement was led by rising soup sales in the U.S. and overseas.

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