Dow ends day with loss after early gains Industrial average loses 1.09 points, closing at 4,755.48

November 01, 1995|By BLOOMBERG BUSINESS NEWS

NEW YORK -- U.S. stocks fell yesterday, ending a two-day rally and wiping out an early 44.43-point gain in the Dow Jones industrial average.

Technology, bank, auto and retail stocks drove down major market indexes in the last hour of trading.

The Dow industrials fell 1.09, to 4,755.48, as Boeing Co. and AlliedSignal Inc. each fell a point or more. In the broad market, the Standard & Poor's 500 stock index, representing 74 percent of the value of all U.S. stocks, slipped 1.75, or 0.3 percent, to 581.50, after rising as much as 3.46.

The Nasdaq composite index slid 3.63, to 1,036.06, after climbing as much as 6.34. The Russell 2000 index eked out a 0.01 gain, to 296.25, and the Wilshire 5000 index fell 11.17, to 5,740.87.

So-called cyclical stocks tumbled in the last hour of trading yesterday.

One catalyst for a slide in paper stocks was unconfirmed speculation that previous increases in white-paper prices had been rescinded.

Shares of Georgia-Pacific, which declined to comment on its pricing strategy, dropped $1.375, to $82.50, and Willamette Industries slid $2.25, to $58.

Financial stocks retreated for a second day as concern continued to mount that delinquencies and loan-loss provisions are mounting. Chemical Banking Corp. dropped $1, to $56.875; Chase Manhattan Corp. fell $1.125, to $57; Bankers Trust New York Corp. slid $1.625, to $63.75; and First Chicago Corp. dropped $1.25, to $67.875.

Computer-related stocks gave back early gains that had been fueled by a forecast from market researcher Dataquest Inc. that the industry will ship a record 17 million personal computers in the fourth quarter.

Compaq Computer Corp., which kept its No. 1 spot in the worldwide personal computer market in the third quarter, rose 75 cents, to $55.625, after reaching a 52-week high of $56.75.

Auto stocks fell amid expectations they will report weak sales for October. Ford Motor Co. fell 87.5 cents, to $28.75; Chrysler Corp. tumbled $1.50, to $51.50; and General Motors Corp. dipped 37.5 cents, to $43.75.

The Morgan Stanley index of 35 cyclical stocks dropped 2.18, or 6.6 percent, to 328.8, while its index of consumer stocks fell 0.72, or 0.27 percent, to 267.99.

Retail stocks, meanwhile, were hurt by a report that sales fell slightly last week and most chains said clothing sales remain far below budget for the month.

Sears, Roebuck & Co. fell 62.5 cents, to $34; Dayton-Hudson Corp. dropped $1.75, to $68.75; and Circuit City Stores Inc. declined $1.125, to $33.375.

Homebuilding stocks rallied for a third day, helped by a larger-than-expected rebound in sales of new single-family homes in September. Nationally, sales rose 3.3 percent to a seasonally adjusted annual rate of 727,000 homes in September.

Pulte Corp. rose 50 cents, to $31.625, and Kaufman & Broad Home Corp. gained 50 cents, to $11.625.

Mining and natural-resource companies with operations in Canada were among those posting gains after the vote in Quebec appeared to settle the future of Canada for the time being.

Homestake Mining, which derives about one-third of its revenue from Canada, rose 12.5 cents. to $15.50, and Alcan Aluminum Ltd. gained 75 cents, to $31.625.

Railroad stocks rose amid anticipation that earnings will expand along with the economy. Burlington Northern Santa Fe rose $1.375, to $83.875. CSX Corp. tacked on $1, to $83.75.

Stocks gained strength for most of the day, helped in part by advances in almost every major overseas stock market. The Nikkei 225 index in Japan, the world's second-largest stock market after the U.S., rose 0.83 percent. Britain's FT-SE 100 index, the third-largest stock market, gained 0.54 percent. Germany's DAX index, the fourth-largest, rose 1.02 percent. France's CAC 40, the fifth-largest, jumped 1.04 percent.

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