Stocks push to 6th record in a row Fed's decision not to tighten fuels 'buy' orders

November 14, 1996|By BLOOMBERG BUSINESS NEWS

NEW YORK -- U.S. stocks rose yesterday after the Federal Reserve left benchmark lending rates unchanged and investors looked to corporate earnings for their cues.

The Dow Jones industrial average rose 8.20 to 6,274.24, its sixth consecutive closing record.

Dell Computer Corp.'s shares jumped $3.75 to $92.375, pushing the Nasdaq composite index higher, after the company reported that third-quarter earnings more than doubled to $1.56 a share, far exceeding the average Wall Street estimate of $1.16.

Stocks benefited from a series of computer-guided "buy" orders after the central bank announced that it would leave the overnight bank loan rate changed.

The Standard & Poor's 500 index rose 1.57 to 731.13, and the Nasdaq gained 4.19 to 1,260.72, both short of records set Monday.

Some 430 million shares changed hands on the New York Stock Exchange. Advancing stocks were nearly balanced with declining shares, as 1,308 stocks rose and 1,132 fell.

Bonds were little changed after the Fed's announcement. The yield on the 30-year Treasury bond rose 1 basis point to 6.45 percent.

Texaco Inc. led the Dow industrials' advance, rising $2.625 to $98 amid expectations that a race-discrimination lawsuit filed by six black employees would be settled sooner and for less money than expected.

Among other Dow gainers, Exxon Corp. rose $1.25 to $90.25, an all-time high.

DuPont Co. fell $2.921875 to $92.953125 after a Sanford C. Bernstein & Co. analyst said the chemical maker's enthusiasm for spinning off its Conoco petroleum unit was waning because of the rise in oil prices.

Microsoft Corp.'s shares gained $3.25 to $145 after its board approved the software company's sixth stock split in 10 years. The company said shareholders would receive one additional share on or about Dec. 6 for each share held Nov. 22.

Informix Corp. rose $1.375 to $19 in trading of 16.2 million shares, making it the most active stock on U.S. exchanges.

Among retailers, Dillard Department Stores Inc. shares fell $3.375 to $29 after the company said fiscal third-quarter earnings fell 38 percent as slow sales forced it to clear out merchandise at deep markdowns.

Federated Department Stores Inc. dropped $1.125 to $34.625; Wal-Mart Stores Inc. lost $1.125 to $24; and Dayton-Hudson Corp. fell $1.25 to $36.875.

The Russell 2,000 index of small capitalization stocks fell 0.02 to 346.11; the Wilshire 5,000 index rose 15.47 to 7,083.10; the American Stock Exchange market value index gained 2.67 to 584.31; and the S&P 400 mid-cap index rose 0.65 to 250.97.

ABR Information Services Inc. fell $11 to $54 after the benefits and information services company said it had fired its chief financial officer and treasurer, Vincent Addonisio.

Bankers Trust New York Corp. fell $2.625 to $81.75 after the banking and financial services company's insiders filed with the Securities and Exchange Commission to sell Bankers Trust shares to take advantage of the company's recent stock gains, the Wall Street Journal reported.

Edmark Corp. rose $3.8125 to $15.25 after International Business Machines Corp. agreed to buy the educational software developer for about $80 million in cash, or $15.50 a share.

Petrolite Corp. rose $4.25 to $39.25 after Wm. S. Barnickel & Co., holder of 47 percent of the specialty chemicals producer's shares, said it intended to solicit written consents from stockholders to remove five members of the board and replace them with Barnickel's nominees.

Sun Microsystems Inc. shares fell $3.50 to $57.625 after analysts at Donaldson, Lufkin & Jenrette and Alex. Brown & Sons Inc. said the computer company's announced price cuts on some computer servers could hurt earnings and might portend tougher competition.

Pub Date: 11/14/96

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