Stocks finish mixed, lifted by late buying Dow up 7

WALL STREET

December 29, 1992|By Bloomberg Business News

NEW YORK -- Stocks closed mixed yesterday as a late flurry of computer-driven buy orders gave the market a lift.

"The market was lackluster until computer buying was triggered in the final 30 minutes of trading," said Phil Smyth, a market analyst at Birinyi Associates, which tracks computer-driven trading.

The Dow Jones industrial average rose 7.02, to 3,333.26, led by gains in Goodyear, McDonald's, Allied-Signal and Disney. Computer-driven buy orders added about 7 points to the Dow.

The Standard & Poor's 500 index closed down 0.62, to 439.15, and declining stocks outnumbered advancing issues by about 4-to-3 on the New York Stock Exchange. Trading was light because of the Christmas holiday and bad weather in the Northeast. About 145 million shares were traded on the Big Board.

The NASDAQ Combined Composite index rose 0.33, to 666.21. The American Stock Exchange edged 0.01 higher, to 394.18.

Stocks were lower for most of the day amid concerns about rising interest rates and a slump in International Business Machines Corp. and Minnesota Mining & Manufacturing.

An increase in Treasury bond yields hampered stocks, said Edward Collins, executive vice president of institutional trading at Daiwa Securities America. The yield on the 30-year bond rose 3 basis points, to 7.39 percent, as traders reduced their inventory of securities. "The rise in Treasury yields spooked the stock market a little," Mr. Collins said.

IBM fell $1, to $51.75. Last week, the stock fell to a 17-year low on concerns that the company was ready to slash its dividend. IBM was also hurt by speculation that more charges for restructuring are needed to revive the company.

Shares of 3M fell 87.5 cents, to $102.875, on concern about the company's earnings. Analysts said it is possible that 3M's earnings will fall below expectations in 1993.

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