Stocks mixed, but Dow again sets record

WALL STREET

May 28, 1993|By New York Times News Service

NEW YORK -- The Dow Jones industrial average rose to another record yesterday, gaining 14.67 points, to 3,554.83, but in contrast to Wednesday's record session, the rest of the market failed to follow.

Analysts said there might have been hesitation by traders because of the House of Representatives' scheduled vote on President Clinton's economic program.

Nonetheless, trading volume on the New York Stock Exchange was heavy at 300 million shares, compared with 274.2 million shares Wednesday. Much of the trading, however, was concentrated in large companies like Chevron, Caterpillar and United Technologies, which are Dow component stocks.

In another contrast to Wednesday's trading, gold prices and gold stocks rose sharply. Investors sought investments other than government bonds, which still offer relatively low yields, and the dollar, which has dropped to a post-World War II low against the Japanese yen.

Newmont Mining rose $1.875, to $52.25, and Echo Bay Mines rose 87.5 cents, to $12. Echo Bay was the most active stock on the American Stock Exchange, as it has been in many recent sessions, with 2.43 million shares changing hands.

While the Dow rose, the Standard & Poor's 500, which has a greater variety of stocks, fell 1.03, to 452.41. The Nasdaq composite index, with more than 3,500 smaller-capitalization and high-technology stocks, gained 0.5 point, to 704.59.

The New York Stock Exchange composite index dropped 0.47 point, to 249.43, and losing stocks outnumbered winners on the Big Board by about 10-to-9.

The Dow was lifted mainly by two stocks, Chevron and Caterpillar. Chevron, the huge oil company, closed up $3.75, at $88.625, after announcing an ambitious restructuring program that impressed industry analysts.

Caterpillar, the maker of construction machinery, hit a new high of $73 before closing up $2.375, at $72.75. There was no discernible news to account for Caterpillar's rise, but many portfolio managers have bought cyclical stocks like Caterpillar, which could benefit from an economic recovery, as part of their investment strategy.

British Petroleum and Tele-Communications were the most noteworthy stocks yesterday in terms of trading volume. Trading remains high in BP shares, partly because of Triton Energy's Colombian oil field project. BP is a partner in Triton. BP's American depositary receipts closed up 12.5 cents, at $58.50. With 8.4 million ADRs changing hands, BP was the most active stock yesterday on any exchange.

Tele-Communications, the cable television company, closed up 50 cents, at $23.375, following upbeat and assertive remarks by its chairman, John C. Malone, at the company's annual meeting.

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