Utility, bank shares keep markets rolling Dow closes above 6,500 as major indexes set new records

Md. stocks rise

November 26, 1996|By BLOOMBERG BUSINESS NEWS

NEW YORK -- U.S. stocks extended a three-week record run yesterday, sending the Dow Jones industrial average past 6,500 for the first time. Utility and bank shares led the gains.

"It's hard to see anything that can derail this market, short term," said Richard Jandrain, managing director for equities at Banc One Investment Advisors, with $40 billion in assets.

All three major indexes passed Friday's records. The Dow industrials rose 76.03 to 6,547.79, its 43rd record of the year; the Standard & Poor's 500 index sprinted 8.30 to 757.03, its 39th record of the year; and the Nasdaq Composite index climbed 6.01 to 1,280.37, its 37th record of the year.

The Dow average is up 8.6 percent this month, its biggest monthly rise since December 1991. The average closed above 6,000 for the first time Oct. 14.

The Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq exchanges, rocketed 68.81 to a record 7,279.40; the S&P midcap index advanced 1.35 to a record 256.32; and the Russell 2,000 index of small capitalization stocks gained 2.37 to 352.29. The American Stock Exchange market value index lost 2.61 to 588.16.

Maryland stocks rose, led by Citizens Bancorp Maryland, which gained $1.25 to $57.50, and Ryland Group Inc., which advanced $1.25 to 13.50.

The market's advance comes as record amounts of money pour into equity mutual funds. A net $5.15 billion was added in the week ended Nov. 20, the highest one-week inflow since early August, according to AMG Data Services.

NYSE trading curbs were imposed after the Dow rose 50 points. The so-called "circuit breakers" limit computer-guided buying and selling in an effort to reduce volatility.

Philip Morris Cos. led the Dow average higher, rising $3.25 to $105.50 in an advance fueled by the resignation of David Kessler as head of the Food and Drug Administration. Kessler had sought more regulations on tobacco.

Shares of gas companies climbed after Duke Power Co. said it will buy PanEnergy Corp. for $7.7 billion in stock. PanEnergy rose $1.75 to $44. Duke fell $1.75 to $46.125. Williams Cos. rose $5.125 to $57.625 on speculation it may be next to be bought. Enron Corp. rose $1.625 to $47.50 and Consolidated Natural Gas Co. gained $1.625 to $65.75 -- both all-time highs.

Bank shares gained. KeyCorp rose $2.375 to $51.25 after the Cleveland-based bank said it will fire 10 percent of its work force and buy back up to 12 million shares. BankAmerica Corp. shares soared $5.375 to $103.125 after Smith Barney Inc. raised its price target for the money center bank to $115 a share from $100.

The benchmark 30-year Treasury bond's yield fell 2 basis points to 6.42 percent.

Chiron Corp. fell $3.75 to $18.125 after the company said its experimental genital herpes vaccine doesn't work, causing it to end trials for the vaccine.

Eli Lilly & Co. shares rose $3 to $78 after the company said the Food and Drug Administration cleared its depression treatment Prozac to treat the eating disorder bulimia nervosa.

Applied Materials Inc., which spurred U.S. markets to records Friday after reporting unexpectedly strong earnings, said it will spend $285 million to acquire two Israeli makers of semiconductor inspection and measurement systems. Analysts said the purchases of Opal Inc. and closely held Orbot Instruments Ltd. would put Applied Materials in direct competition with Hitachi Corp. of Japan and KLA Instruments Corp. of the United States. Opal rose $6 to $18.125. Applied Materials dropped $1 to $37.625.

United Technologies Corp. rose $3.50 to $138.50 after an article in Barron's said the manufacturing conglomerate's chief executive and president, George David, turned around the company by cutting jobs and trimming factory and office space.

Ascend Communications Inc. rose $2.375 to $72.625 after the maker of computer networking products said its Pipeline 50 device for connecting high speed telephone lines was named in PC/Computing magazine as "Best ISDN Router."

Cityscape Financial Corp. rose $1.375 to $25.75 after the mortgage banker said Michael Price's Franklin Mutual Advisers Inc. will invest in the company by purchasing options representing the right to purchase 4.1 million common shares from three principal shareholders.

Pub Date: 11/26/96

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