Dow hits fifth straight record Broader market falls back

performance of stocks is mixed

November 13, 1996|By BLOOMBERG BUSINESS NEWS

NEW YORK -- U.S. stocks were mixed yesterday as declines in chip maker, drug and retail shares overshadowed a rally in bonds.

Union Carbide Corp. led the Dow Jones industrial average up 10.44 to 6,266.04, its fifth record in a row, while the broader market fell from Monday's highs. The Standard & Poor's 500 index slipped 2.31 to 729.56, and the Nasdaq composite index dropped 6.14 to 1,256.53.

In the previous six days, the S&P 500 gained 3.6 percent and set five records.

Intel Corp. and other semiconductor companies dragged the Nasdaq composite down in afternoon trading amid speculation that Goldman, Sachs & Co. had cut its investment opinion on chip makers. The firm denied having made such a move.

The Russell 2,000 index of small capitalization stocks rose 0.43 to 346.13; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, fell 15 to 7,067.63; the American Stock Exchange market value index gained 1.91 to 581.64; and the S&P 400 midcap index rose 0.08 to 250.32.

The Philadelphia semiconductor index fell 0.60 to 212.16, after being up 5.17 to 217.93 earlier. Intel slumped $2.875 to $121; Texas Instruments Inc. fell 87.5 cents to $55.125; and Micron Technology Inc. fell $2 to $30.75.

Maryland stocks rose, led by Tessco Technologies Inc., which climbed $1.50 to $37, and Comnet Corp., which jumped $1.25 to $10.50.

Drug shares fell after Merrill Lynch & Co. said recent gains in the stocks might have overvalued them relative to next year's earnings. Pfizer Inc., which jumped 9.9 percent last week, dropped $1.625 to $87.125; Merck fell 41.375 to $79.625; and Eli Lilly & Co. dropped $1.875 to $75.375.

Retailers were mixed. Woolworth Corp. surged $1.50 to $24.25, its highest level since February 1993, on speculation that the retailer might have good news about the rest of the year when it reports earnings tomorrow.

Wal-Mart Inc., J. C. Penney Co. and Home Depot Inc. slumped after reporting profits that didn't impress Wall Street.

Nordstrom Inc. beat forecasts and saw its shares rise $2.25 to $42.625. The clothing, shoe and accessories retailer reported that third-quarter net income rose to 42 cents a share from 36 cents in the year-earlier quarter, above the average forecast of 36 cents.

The benchmark 30-year Treasury bond's yield fell 6 basis points to 6.44 percent, the lowest since March 6.

News Corp. American depositary receipts fell $1 to $21.50 after the company said first-quarter profit from operations rose a lower-than-expected 0.4 percent as profits dropped in its U.S. television, Australian newspaper and book publishing operations.

AT&T Corp. rose $1.25 to $38.375; Ameritech Corp. rose 25 cents to $55.25; and SBC Communications Inc. rose 25 cents to $49.

Anchor Gaming fell $8.875 to $30.125 after the company said it is re-evaluating its proposed addition to a new casino in Colorado.

Hughes Supply Co. rose $2.50 to $41.875 after the plumbing and electrical supply company said third-quarter earnings rose to 91 cents a share from 62 cents. The average estimate was for 85 cents in a survey of three analysts by IBES International Inc.

Informix Corp. fell $3 to $17.625 after Montgomery Securities analyst David Readerman cut his fourth-quarter earnings estimate to 25 cents a share from 27 cents for the developer of database management software, and cut his fiscal 1997 estimate to 97 cents from $1.

Pub Date: 11/13/96

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