Nasdaq index hits 2nd straight record high But tobacco stocks pull down Dow industrials after lawsuit ruling

November 28, 1996|By BLOOMBERG BUSINESS NEWS

NEW YORK -- U.S. stocks were mixed yesterday as investors sought value in smaller companies and computer-related shares. Stocks in the Dow Jones industrial average were the big losers.

The Nasdaq composite index, filled with computer-industry and small companies, rose 6.12 to 1,287.32, its second straight record, led by Intel Corp.

Walt Disney Co., Texaco Inc. and Philip Morris Cos. sent the Dow industrials down 29.07 to 6,499.34.

Philip Morris sent stocks into a late-afternoon slide after it and other tobacco companies lost an appeal to the Minnesota Supreme Court, forcing them to disclose unedited cigarette formulas as part of a pending lawsuit.

The Standard & Poor's 500 index fell 0.96 to 755.00.

The Russell 2,000 index of small capitalization stocks climbed 1.29 to 352.67; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq exchanges, gained 3.54 to 7,269.52; the American Stock Exchange market value index edged up 0.31 to 588.64; and the S&P midcap index advanced 0.30 to 255.82.

Among Maryland stocks, First Financial Corp. of Western Maryland jumped $2.875 to $31.625 after the bank holding company said it will be acquired by Keystone Financial Inc. for about $74 million in cash and stock. Maryland Federal Bancorp rose $1.50 to $33.25.

Some 377 million shares changed hands on the New York Stock Exchange, less than the three-month daily average of 418 million. Trading was slow ahead of the Thanksgiving holiday. Advancing stocks led decliners 1,295 to 1,147.

The Dow industrials gained 850 points, or 15 percent, in the three months that ended with a record high Monday, prompting investors to look elsewhere for buying opportunities.

Computer-related shares surged amid expectations for robust growth in 1997. Intel rose $2.875 to $126.625; Texas Instruments Inc. gained $2.875 to 63.75; and Motorola Inc. rose $1.875 to $55.75.

Oil shares slid after the United Nations approved an arrangement for letting Iraq export oil for the first time since the 1990 invasion of Kuwait. The prospect of Iraq sending more crude oil into the market took some of the bloom off oil stocks, analysts said.

Royal Dutch Petroleum Co. fell $3.625 to $167.50; Exxon Corp. fell $1.125 to $93.75; Chevron Corp. fell $1.50 to $66.625; and Texaco Inc. fell $1.625 to $98.875.

Disney shares dropped $2.125 to $73.875. The company said it would distribute a film about the Dalai Lama, Tibet's exiled spiritual leader, despite Chinese warnings that Disney's backing could derail a possible theme park and other expansion plans in China.

But some bank shares fell after the morning's economic reports suggested interest rates may have bottomed. CoreStates Financial Corp. fell 62.5 cents to $53.875; SunTrust Banks Inc. fell 12.5 cents to $50.50; and Fifth Third Bancorp fell $2.25 to $71.50.

The yield on the U.S. 30-year Treasury bond fell 2 basis points to 6.42 percent.

Shares of Conrail Inc. fell 37.5 cents to $96.50 after the Wall Street Journal reported that the purchase of the company, whether by CSX Corp. or Norfolk Southern Corp., already is facing stronger-than-expected opposition from shippers, ports and Congress.

Among stocks that gained, America Online Inc. rose $2.25 to $34.875 after it was raised to "buy" from "neutral" at Cowen & Co.

Armor All Products Corp. rose $1.390625 to $18.890625 after Clorox Co. said it will buy the company for $408 million in cash, or $19.09 a share, adding automotive cleansers and waxes to its stable of home cleaning products. Clorox was unchanged at $105.50.

Arbor Software Corp. rose $3.875 to $25.625 after the software company was raised to "strong buy" from "buy" by Hambrecht & Quist Group.

Dynatech Corp. fell $2 to $47.75 after Investor's Business Daily reported that the electronic equipment maker is looking to buy industrial equipment testing companies.

Pub Date: 11/28/96

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