Trading is mixed Dow 30 dead even

Industrials rebound from 48 points down

computers are strong

December 03, 1996|By BLOOMBERG BUSINESS NEWS

NEW YORK -- U.S. stocks were mixed yesterday as falling bank issues offset gains in computer and retail shares.

The Dow Jones industrial average recovered from a 48-point slide to close unchanged at 6,521.70, the first time since Aug. 8, 1995, that it ended the day exactly where it began. The Standard & Poor's 500 index fell 0.46 to 756.56.

Smaller and computer-related shares outperformed the Dow and The Nasdaq composite index jumped 7.21 to 1,299.82.

Among broad market indicators, the Russell 2,000 index of small companies rose 1.23 to 355.34. the Wilshire 5,000 index gained 3.41 to 7,295.57, its second straight record; the American Stock Exchange market value index increased 1.45 to 592.93; and the S&P midcap index advanced 1.80 to 257.41.

Some 413 million shares changed hands on the New York Stock Exchange. Advancers outnumbered decliners 1,269 to 1,215.

United Technologies Corp. fell 25 cents to $140 after CS First Boston cut it to "hold" from "buy," citing the fact that the stock has tripled since the firm put a "buy" recommendation on it and is no longer inexpensive.

Shares of other big companies that led the rally in recent months also fell. Boeing Co. lost $1.875 to $97.50; J. P. Morgan & Co. fell $1 to $93.25; and AlliedSignal Inc. fell $1.625 to $71.625.

Computer shares rose, led by International Business Machines Corp. and Digital Equipment Corp. amid expectations for strong growth in 1997. IBM gained $3.625 to $163 and Digital spurted $3.50 to $40.125.

America Online Inc. rose $4.625 to $39.875 on expectations that the No. 1 online service signed up about 300,000 new subscribers in November.

Retail shares such as Sears, Roebuck & Co., up $1.50 to $51.25, benefited from the signs of a rebound in consumer spending, while rising bond yields sent bank shares lower as concern grew that too much Christmas cheer could revive inflation.

Financial companies are particularly vulnerable to changes in interest rates because they are highly leveraged. BankAmerica Corp. fell $1 to $101.75; Chase Manhattan Corp. dropped $1.375 to $93.125; and J.P. Morgan & Co. fell $1 to $93.25.

The yield on the benchmark 30-year Treasury bond rose 1 basis point to 6.36 percent.

Comcast Corp. gained 37.5 cents to $17. The company is among Dillon Read & Co. analyst Mary Kukowski's picks in the cable industry, Barron's reported.

Health Images Inc. shares rose 37 1/2 cents to $16 after HealthSouth Corp. said it agreed to buy the company for $270 rTC million in stock in a purchase that will add medical imaging clinics to HealthSouth's growing stable of health-care services. The HealthSouth offer values Health Images shares at almost 16.875.

John Alden Financial Corp.'s shares fell 37 1/2 cents to $17.25 after SunAmerica Inc. said it will buy "substantially all" Alden 's annuity business for about $240 million. The agreement is part of John Alden's plan to focus on its health insurance business.

Eastbay Inc. shares rose $4.25 to $23.25 after Woolworth Corp. said it agreed to acquire the catalog marketer of brand-name and private-label athletic shoes and apparel, for about $146 million in cash. The offer values the company at $24 a share. It closed at $19 Friday.

Zycon Corp. rose $3.50 to $16. The company, a maker of printeed circuit boards for telecommunications and computer equipment, said it will be bought by an affiliate of Hicks, Muse, Tate & Furst Inc. for $179.6 million, or $16.25 a share.

Bristol-Myers Squibb Co. rose $2 to $115.75 after the drug maker was raised to "buy" from "hold" at Montgomery Securities, and a Merrill Lynch & Co. analyst boosted the company's rating to "accumulate" from "neutral."

DuPont Co. rose $1.875 to $96.125 after the chemical giant was added to the "approved list" by analyst A. Marshall Acuff at Smith Barney Inc.

Pub Date: 12/03/96

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