Petroleum stocks up in mixed market AT&T loses $1.375 per share after Mandl resigns as president

August 20, 1996|By BLOOMBERG BUSINESS NEWS

NEW YORK -- U.S. stocks were mixed as gains by a host of petroleum-related issues helped offset a slump in AT&T Corp. and declining Treasury bonds.

Bond yields rose, keeping the stock market from extending Friday's gains, amid last-minute concern that Federal Reserve policy-makers might unexpectedly boost rates today. Most stock investors expect the Fed will keep lending rates unchanged.

The Dow Jones industrial average rose 9.99 to 5,699.44, led by Texaco Inc., Philip Morris Cos. and Exxon Corp. AT&T's slide knocked 4 points from the 30-stock average.

Advancing stocks outnumbered declining issues on the New York Stock Exchange by 6 to 5. Volume on the Big Board reached 294 million shares, the second-slowest full day of the year, behind July 29.

In the broad market, the Standard & Poor's 500 index gained 1.37 to 666.58.

The Nasdaq composite index dropped 2.74 to 1,130.91, hurt by Viking Office Products Inc. and Cascade Communications Corp.; the Russell 2,000 index of small-company shares gained 0.43 to 329.34; the Wilshire 5,000 index of the biggest companies on the New York and American stock exchanges and the Nasdaq stock market advanced 9.38 to 6,512.52; the S&P midcap index dropped .29 to 230.82; and the American Stock Exchange market value index rose 1.46 to 557.60.

AT&T, the fourth-largest company in the S&P 500, slid $1.375 to $54.125 after its president, Alex Mandl, resigned to head Associated Communications LLC. Associated Communications' parent, Associated Group Inc., soared $4.75 to $30.25.

Oil stocks soared as the price of Texas crude oil jumped 60 cents to $23.26 a barrel, a four-month high, amid optimism that demand is strong enough to absorb the limited amounts of oil Iraq is preparing to export.

Texaco rose $1.125 to $89; Exxon Corp. rose $1.125 to $83.50; Chevron Corp. climbed $1 to $60; Amoco Corp. increased $1 to '' $70.50; Amerada Hess Corp. gained $1.125 to $51.125; and Mobil Corp. added 75 cents to $114.375.

Oil and gas explorers also benefited, with Rowan Cos. rising 50 cents to 15.625 and Helmerich & Payne Inc. jumping 75 cents to $40.25. Among oil-well service and equipment makers, Schlumberger Ltd. climbed $1 to $85.50 and Halliburton Co. surged $1.375 to $54.875.

Airlines surged after major carriers raised fares by 10 percent. Northwest soared $1.50 to $37; AMR Corp., parent of American Airlines, rose 62.5 cents to $84; Continental gained 75 cents to $23.625; and UAL Corp., parent of United Airlines, climbed 50 cents to $49.

Pepsico Inc. slumped $1 to $30.50 and was the second-most active stock in the country, behind British Petroleum PLC, and Coca-Cola Co. lost 12.5 cents to $51.375. PepsiCo's Venezuelan bottler switched to Coke.

Some life insurance and electric utility stocks rose yesterday. Aetna Inc. rose 37.5 cents to $68.75; Equitable Cos. advanced 37.5 cents to $24.625; and SunAmerica Inc. jumped $1.875 to $68.

Among utilities, Baltimore Gas and Electric Co. gained 37.5 cents to $26.50; Northern States Power Co. was up 37.5 cents to $46.25; and Texas Utilities Co. added 37.5 cents to $42.625.

Harrah's Entertainment Inc. slid $2.625 to $18.125. Salomon Brothers cut its rating two notches to "hold" from "strong buy" because of concern that earnings will slow.

Yields on benchmark 30-year Treasury bonds climbed to 6.79 percent from 6.76 percent Friday.

Overseas stock markets were mixed. The Nikkei 225 index in Japan, the world's second-largest market after the United States, jumped 1.31 percent; the FT-SE 100 index in Britain, the third-largest market, fell 0.24 percent; and Germany's DAX index gained 0.57 percent.

Pub Date: 8/20/96

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.