U.S. stocks resume advance Dow up 33

Investors anticipate growing economy, corporate gains in '97

December 25, 1996|By BLOOMBERG BUSINESS NEWS

NEW YORK -- U.S. stocks, boosted by American Express Co. and AT&T Corp., resumed a recent advance yesterday in an abbreviated session, as investors anticipated a growing economy and rising corporate profits in 1997.

Trading was the slowest since Thanksgiving because of the Christmas holiday. The New York and American stock exchanges and the Nasdaq Stock Market closed at 1 p.m., and will re-open at 9: 30 a.m. tomorrow.

The 30-stock Dow Jones industrial average rallied for a sixth day, climbing 33.83 to 6,522.85, just 24.94 points, or 0.38 percent, shy of a late November record.

The S&P 500 index, representing three-quarters of the value of all U.S. stocks, rose 4.11 to 751.03, and the Nasdaq composite index advanced 8.11 to 1,287.63.

The Russell 2000 index of small-company shares rose 0.45 to 355.87; the American Stock Exchange market value index edged up 0.37 to 581.35; and the S&P midcap index added 1.04 to 252.40.

Only 168 million shares changed hands on the NYSE, compared with 340.1 million Monday. About 1,289 stocks advanced on the New York Stock Exchange while 946 fell.

GE gained $1 to $102, and Citicorp advanced $1.375 to $105.25.

AT&T Corp. surged $1.50 to $41.375, its highest since mid-July, after the Wall Street Journal said John Walter, the company's new chief executive, has moved to cut costs and improve efficiency.

Intel Corp. and other computer-related stocks led a late-day rally on the Nasdaq. Intel jumped $3.25 to $135.50; Microsoft Corp. rose $1.125 to $84.875; Dell Computer Corp. added $2.25 to $54; and Gateway 2000 Inc. rose $1.875 to $56.625.

Digi International Inc. tumbled $3.875 to $8.875. The maker of data communications hardware restated its fiscal fourth-quarter earnings to show a loss of 2 cents a share, down from 38 cents a share in the year-earlier period. The Minnesota company also warned of weaker-than-expected fiscal first-quarter profits because of lower demand for new products and manufacturing delays of new products.

Motorola Inc. rose $1.50 to $60.375, extending Monday's $1.25 gain. The semiconductor and cellular phone maker was named yesterday "the best idea for 1997" at Lehman Brothers, raised to "buy" at Credit Suisse First Boston and repeated as a "buy" at Robertson, Stephens & Co.

Florida Panthers Holdings Inc. soared $4.25 to a record $17. On Monday, the owner of the National Hockey League's Florida Panthers agreed to buy two Florida resorts for $107 million in stock.

American depositary receipts of Teva Pharmaceutical Industries Ltd. gained $1.8125 to $46.50. The Israeli drug maker received U.S. marketing approval for its Copaxone multiple sclerosis drug.

Pediatrix Medical Group Inc. gained $2.125 to $35.25. The provider of doctor management services was raised to "outperform" from "market perform" at Donaldson, Lufkin & Jenrette.

TRO Learning Inc. skidded $6.75 to $10.50 after the maker of educational software reported unexpectedly weak fourth-quarter earnings as the company booked more orders than it shipped.

Day Runner Inc. tumbled $4.75 to $19.25. The maker of datebooks and planners said fiscal second-quarter earnings and sales would be lower than analysts' expectations.

Matrix Pharmaceutical sank $2.375 to $6.125. The company said its application for a genital warts treatment is "unapprovable as submitted" to the Food and Drug Administration.

Advanced Technology Laboratories Inc. rose $1 to $31.125. The FDA approved an application to use Advanced Technology's HDI 3000 ultrasound system to detect breast tumors.

Pub Date: 12/25/96

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