NEW YORK -- On the busiest day in market history, U.S. stocks rebounded from the lows caused by Monday's plunge, but the broader market stayed down as the Dow Jones industrial average recovered from a 166-point slide to a 9-point gain.
The Dow industrials closed at 5,358.76, still 7.2 percent from May record of 5,778. At its worst, the 30-stock average registered its lowest intraday level since Jan. 23.
The rebound came as declining bond yields and better-than-expected earnings from Eastman Kodak Co. and Caterpillar Inc. eased concern that corporate profits will suffer further this year, encouraging investors once more to look at a slump as a buying opportunity.
But the Standard & Poor's 500 index fell 1.43 to 628.37, and the Nasdaq composite index dropped 6.72 to 1,053.47.
The Russell 2,000 index of small capitalization stocks fell 4.6, to 310.12; the Wilshire 5,000 Index, comprising stocks on the New York, American and Nasdaq stock exchanges, dropped 34.15, to 6,126.47; the American Stock Exchange market value index fell 7.83, to 525.6; and the S&P 400 midcap index fell 2.61, to 215.99.
A record number of shares changed hands on both the New York Stock Exchange and the Nasdaq stock market. On the Big Board, the 682.9 million shares traded topped Dec. 15's record of 652.8 million. Nasdaq's 877.3 million surpassed the 806.5 million-share record it set May 7.
Yesterday's most active stocks in U.S. composite trading were Intel, Cisco Systems Inc., Office Depot Inc., Iomega Corp. and Sun Microsystems Inc.
Among the biggest advancers, Hewlett-Packard Co. rose $3.375, $41.625; Compaq Computer Corp. jumped $3.50, to 45; Microsoft Corp. climbed $4.75, to $115.375; and International Business Machines Corp. rose $4.875, to $95.75.
After the close of trading, Intel Corp., the world's biggest maker of semiconductors and a computer industry bellwether, reported PTC net income of $1.04 billion, or $1.17 a share. Analysts expected earnings of $1.09 a share. Intel stock rose $2.125 in after-market trading, to $72.125.
Leading the Dow average higher, Kodak rose $3, to $70 and Caterpillar jumped $2.625, to $66.375.
Stock suffered a midday plunge driven by disappointing earnings reports from Eli Lilly & Co., Wells Fargo & Co. and Whirlpool Corp. Pessimism about earnings was touched off by Motorola Inc. and Hewlett-Packard last week.
Wells Fargo's shares closed at $227.625, down 50 cents, after dropping $7.50, to $220.50, when it reported net income of $3.61 a share, 50 cents below estimates.
Eli Lilly's stock dropped $2.50, to $57, after the company said sales of its antidepressant drug Prozac rose less than expected. For the quarter, the 12 percent rise in profit just matched expectations.
Drug shares slid on Lilly's report. The American Stock Exchange pharmaceutical index, which reached a 52-week high of 321.27 July 3, fell 0.79, to 306.04. Merck & Co. fell $1.125, to $61.125; Schering-Plough Corp. dropped $1.375, to $58.50; and Pharmacia & Upjohn Inc. lost 25 cents to $40.875. Pfizer Inc. bucked the trend, rising 87.5 cents, to $72.25.
The S&P oil index of major oil producers fell 9.39, to 555.03. Among individual issues, Mobil Corp. fell $3.375, to $111.625; Chevron Corp. slipped $1.125, to $58.125; Amoco Corp. dropped 50 cents, to $68.125; and Texaco Inc. dropped 87.5 cents, to $86.375.
The benchmark 30-year Treasury government bond gained, sending its yield down 5 basis points to 7.02 percent.
CompuServe Corp.'s stock fell $3, to $12.50. The online services company said it sees a fiscal first-quarter loss from operations of 15 cents to 20 cents a share. CompuServe said it had "flat" subscriber growth during the quarter.
H&R Block Inc. said it will spin off to shareholders the remaining 80.1 percent of CompuServe it owns.
Pub Date: 7/17/96