Stocks extend record advance Dow 30 rise 53 points

Applied Materials fuels computer-share rally

November 23, 1996|By BLOOMBERG BUSINESS NEWS

NEW YORK -- U.S. stocks barreled further into record territory yesterday, extending a month-long rally that has seen the Dow Jones industrial average retreat for just three sessions.

Applied Materials Inc., a maker of computer chip equipment, sparked the climb after it reported better-than-expected profit from operations and company executives said orders are expected to stay ahead of shipments in the coming year.

The world's largest maker of machinery used to construct semiconductors gained $6.625 to $38.625. Applied Materials' rally spurred a revival among other chip equipment suppliers.

International Business Machines Corp., the world's largest computer company, paced the rally in the Dow industrials, which climbed 53.29 to a record 6,471.76. That brought the average's gain for the month to 442 points.

The Standard & Poor's 500 index gained 5.98 to a record 748.73. The Nasdaq composite index, home to almost all of the chip equipment makers and many other computer-related shares, climbed 16.28 to an all-time high of 1,274.36.

The Russell 2,000 index rose 2.74 to 349.92; the Wilshire 5,000 index climbed 53.94 to 7,210.6, a record; the American Stock Exchange market value index jumped 3.01 to 590.77; and the S&P mid-cap index gained 2.58 to 254.97.

Maryland stocks rose, led by North American Vaccine Inc., which jumped $2.125 to $22.25, and Black & Decker Corp., which rose $1.50 to $37.50.

Some 528.2 million shares traded hands on the New York Stock Exchange. Advancing stocks outnumbered decliners by 1,540 to 971, the widest margin since Nov 6.

KLA Instruments Corp. rose $5.25 to $38.50 and Novellus Systems Inc. gained $9.296875 to $59.75. Tencor Instruments, a supplier of chip equipment to Intel Corp., gained $5.75 to $27; Lam Research Corp. hopped $4.5625 to $34.0625; and Silicon Valley Group Inc. climbed $2.375 to $21.875.

Computer systems shares were the best-performing stock group in the S&P 500 for the week.

Overall, the S&P 500 index gained 11 points, or 1.5 percent in five days. The Dow industrials tacked on 123 points, or 2 percent. The Nasdaq climbed 12 points, or 1 percent, on the week.

Among computer-related shares yesterday, IBM gained $4.375 to $158.50, Microsoft rose 12 1/2 cents to $150.50 and Intel rose $3.50 to $122.375.

Computer-product distributor Avnet Inc. leaped $1.50 to an all-time high of $58.125. Micron Technology Inc., a memory chip maker, gained $1.75 to $32.50.

Cisco Systems Inc., the No. 1 maker of networks for computers, rose $1.625 to an all-time high of $67.625.

Shares of America Online Inc., the biggest network communications service, surged $4 to $31.125 after its main rival, Compuserve Corp., canceled a service aimed at family users that vied for America Online users.

Shares of VLSI Technology Inc., a specialty chip maker, fell tTC $2.375 to $22.625 after the company said it would shutter one wafer plant, fire 300 people and take a charge of between $100 million and $120 million to cover related costs in the fourth quarter.

Oil shares were strong.

Schlumberger Ltd. jumped $2 to $104.625, and Halliburton Co. rose $1.75 to $61.75.

Higher-than-expected prices for crude oil and natural gas in recent months played a part in oil stocks' strength as well. Amoco Corp., up 93 3/4 cents to $78.125; Exxon Corp., ahead $2 to $92.875; and American depositary receipts of British Petroleum Co., plus $1.875 to $140.75, all reached record highs.

American depositary receipts of Cia. Anonima Nacional Telefonos de Venezuela, the government-owned phone company, rose $2.875 to $25.875 on their first day of trading.

The yield on the benchmark Treasury bond rose 3 basis points to 6.44 percent.

Pub Date: 11/23/96

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