Report pushes U.S. stocks forward Citicorp, Anadigics and Chase Manhattan get boost

February 01, 1997|By BLOOMBERG BUSINESS NEWS

NEW YORK -- U.S. stocks advanced for a third day yesterday after a report on economic growth in the fourth quarter showed the economy is steaming ahead with few signs of inflation.

The Dow Jones industrial average fell 10.77 to 6,813.09, while in the broad market higher prices for Intel Corp. and Cisco Systems Inc. drove up the Standard & Poor's 500 index by 1.99 to 786.16, less than a point below its Jan. 22 all-time high, and the Nasdaq composite index by 8.83 to 1,379.85.

The Dow industrials climbed for most of the day, until a late-day decline in General Electric Co., General Motors Corp. and oil shares. It still managed to end the month with a gain of 365 points, or 5.7 percent.

The broad market was able to hold onto part of the day's gains, boosted by Coca-Cola Co., whose fourth-quarter earnings grew 18 percent. The stock, the second biggest in the country, rose 62.5 cents to $58.

The S&P 500 jumped 6.1 percent for its best January since 1989. The Nasdaq composite rose 6.9 percent for the month, the second in a row in which it was stronger than the rest of the market.

The Russell 2,000 index of small capitalization stocks gained 1.16 yesterday to 369.45; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq exchanges, rose 19.01 to 7,575.79; the American Stock Exchange composite index inched up 0.11 to 588.77; and the S&P midcap index added 1.34 to 264.89.

Advancing stocks outnumbered declining issues by 1,411 to 1,111 on the New York Stock Exchange, where volume reached 578.5 million shares. More than 11.6 billion shares changed hands this month on the Big Board, eclipsing the October record of 9.7 billion.

Stocks got a boost most of the day as yields on benchmark 30-year Treasury bonds fell to 6.78 percent from 6.86 percent.

Chase Manhattan Corp., the largest U.S. bank, rose 75 cents to $92.50. Citicorp surged $2.125 to $116.375.

The biggest loser, and most active stock, on U.S. exchanges was Mercury Financial Co., which collapsed 86 percent, from $12.75 to $2.125, on its first day back since trading was halted Wednesday.

Falling stocks in the Dow industrials included GE, down $2.125 to $103.50; GM, $1.125 lower at $59; and Texaco Inc., $1.25 lower at $105.875.

Computer industry companies extended Thursday's rally amid hopes for continued growth. Intel Corp. rose $2.125 to a record $162.25, bringing the No. 1 chip-maker's three-day gain to $11.25.

Network equipment maker Cisco Systems Inc. rose $2.25 to $69.75.

Anadigics Inc., a maker of integrated circuits for telecommunications, soared $7.75 to $53.25 after reporting fourth-quarter earnings almost triple analysts' estimates.

Novell Inc., a maker of networking software, jumped 87.5 cents to $12.625 amid speculation that it would be bought. Novell was the second-most-active stock, as 14.3 million shares traded.

Rational Software Corp. fell $1.875 to $25.375 amid concern about product delays, traders said.

Takeover speculation boosted shares of Dow Jones & Co., which rose $1.125 to $39.625.

Pub Date: 2/01/97

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.