Stocks slip on signs of weaker earnings Dow declines 7 points

aerospace, financial, oil sectors lead day's losers

Wall Street

November 02, 1996|By BLOOMBERG BUSINESS NEWS

NEW YORK -- U.S. stocks fell yesterday as investors saw omens of weaker earnings among the economic signals that pushed borrowing costs down this week.

The Dow Jones industrial average fell 7.45 to 6,021.93. A slump in Boeing Co. accounted for most of the drop, after the aircraft maker said its new versions of the 747 jetliner will cost as much as $7 billion, 40 percent more than earlier estimates.

The Nasdaq composite index rose 0.27 to 1,221.78, boosted by a surge in MCI Communications Corp. after the long-distance company said an announcement would be made before Monday about a possible merger with British Telecommunications PLC. MCI traded as high as $31, up $5.875, or 23 percent, before trading was halted.

The Standard & Poor's 500 index fell 1.50 to 703.77, led by oil and financial issues.

The Dow industrials were little changed for the week, gaining about 0.03 percent. The S&P 500 rose 0.04 percent and the Nasdaq was little changed.

Some 1,163 issues rose while 1,225 fell in trading of 465 million shares on the New York Stock Exchange. An average of 404 million shares have traded on the exchange each day this year.

The 30-year Treasury bond yield rose 4 basis points to 6.68 percent.

Among financial stocks, NationsBank Corp. fell $1.375 to $92.875; Mellon Corp. dropped 75 cents to $64.25; and Bank of Boston Corp. lost $1.25 to $62.75.

Boeing led aerospace shares lower, falling $3.50 to $91.875. Northrop Grumman Corp. slid 62.5 cents to $80.125 and Lockheed Martin Corp. fell 25 cents to $89.375. Sundstrand Corp., which sells parts to Boeing, dropped 25 cents to $40.

Among broad U.S. stock indexes, the Russell 2,000 index of small capitalization stocks fell 0.81 to 339.76; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, dropped 9.54 to 6841.79; the American Stock Exchange market value index gained 3.86 to 572.58; and the S&P 400 midcap index rose 0.09 to 242.43.

Oil shares fell for a second day, as crude oil prices continued to slide. Crude fell 7.3 percent on the New York Mercantile Exchange this week as inventories rose.

Oil and gas drilling companies, the star performers on the S&P 500 this year, were among the worst percentage losers yesterday. Before yesterday, the drilling index had more than doubled; yesterday, it fell 6.1 percent. Baker Hughes Inc. fell $1.50 to $34 and Halliburton Co. dropped $2 to $54.625.

Pub Date: 11/02/96

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