Oil, semiconductor firms lead rebound Dow up 8


April 06, 1993|By Bloomberg Business News

NEW YORK -- U.S. stocks rebounded a bit from Friday's drop, with shares of oil and semiconductor companies leading the rise yesterday.

The Dow Jones industrial average rose 8.38, to 3,379.19, after falling 68.63 points, or 2 percent, Friday. Gains in Texaco Inc. and Chevron Corp. stock offset declines in shares of Procter & Gamble Co. and McDonald's Corp.

"After what happened Friday, it wasn't surprising that we saw prices stabilize as investors try to figure out what's going to be the next big move in stocks," said Peter Da Puzzo, senior managing director at Cantor Fitzgerald & Co.

Standard & Poor's 500 Index increased 0.90, to 442.29, ending a three-session slump. The Nasdaq Combined Composite Index gained 0.86, to 670.71, while the American Stock Exchange Market Value Index rose 0.32, to 417.84.

Declining common stocks led advancing issues by about 8-to-7 on the New York Stock Exchange.

Stocks plunged Friday in response to a pessimistic earnings outlook from Philip Morris and a report showing that the economy lost jobs in March.

Philip Morris, whose stock dropped 23 percent Friday, to the lowest level since January 1991, closed unchanged, at $49.875. It was the most active U.S. issue for the second session in a row. Trading totaled 16.3 million shares, down from 34.3 million Friday.

Shares of oil producers were the best performers as investors speculated that the recent rise in gold and other commodity prices was likely to be matched into the oil market, Mr. Da Puzzo said.

Texaco rose $1.625, to $64.75; Amoco Corp. surged $1.375, to $58.875; Chevron gained $2.50, to $83.50; and Mobil rose $1.75, to $70.375.

Semiconductor stocks surged as Standard & Poor's semiconductor index, which lost 5.4 percent last week, increased 4.51 to 146.61. Intel Corp. rose $2.625, to $110.125, Motorola Inc. rose $2.75, to $65.50, and Texas Instruments Inc. gained 87.5 cents, to $54.

Concern about the economic recovery and doubts about whether first-quarter earnings will meet investors' expectations hindered the market's advance, Mr. Da Puzzo said.

Shares of some consumer products companies were the latest to fall amid earnings concern. Colgate-Palmolive Co. declined $2.625, to $62.125, after an analyst at Smith Barney, Harris Upham & Co. said its sales are below expectations. Procter & Gamble also was hurt by the Smith Barney report; the stock fell $1.25, to $47.375.

Philip Morris, RJR Nabisco Holdings Corp., Wal-Mart Stores Inc., Read-Rite Corp. and Tele-Communications Inc. were the five most actively traded issues on the U.S. composite. About 296 million shares changed hands.

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