Stocks mixed in heavy trading Kodak, Philip Morris draw down Dow, but health, beverage firms gain

Wall Street

March 22, 1997|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks were mixed yesterday, as health, beverage and other companies whose profits would be affected least by rising interest rates gained, and Eastman Kodak and Philip Morris Cos. tumbled.

Shares of Procter & Gamble Co., American Home Products Corp. and Coca-Cola Co. rose.

The Dow Jones industrial average fell 15.49 to 6,804.79, its sixth drop in the last eight days. The 30-stock average fell as low as 6,790.06, its lowest since Feb. 11. If not for Kodak's loss, the Dow would have risen about 14 points. For the week, the average fell 1.9 percent.

Kodak tumbled $9.25 to $79 after it said sales for the first two months of 1997 were "essentially flat" from a year earlier.

Philip Morris Cos., another Dow stock, fell $4.375 to $111.50, bringing its two-day drop to $10.50 after Brooke Group Ltd.'s Liggett cigarette unit admitted that cigarettes are addictive and cause lung cancer and heart disease, sparking concern about the industry's ability to defend lawsuits.

The Standard & Poor's 500 index climbed 1.45 to 784.10 and the Nasdaq composite index fell 5.19 to 1,254.07.

The Russell 2,000 index of small capitalization stocks fell 0.58 to 351.73; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, gained 14.22 to 7,468.07; the American Stock Exchange composite index lost 0.33 to 591.22; and the S&P 400 midcap index rose 0.04 to 259.92.

Trading on the New York Stock Exchange was heavier than usual, with more than 100 million shares changing hands in the first 10 minutes of trading. By the close, trading topped 544.8 million shares, far above the three-month daily average of 491 million shares.

The Morgan Stanley consumer stock index rose 0.32 to 361.06. Food distributor Sysco Corp. rose 25 cents to $33.75; health-care products maker American Home rose $1 to $64.125; Coke climbed $1 to $60; and Merck gained 37.5 cents to $91.125.

Shares of Motorola Inc. fell 50 cents to $56.125 after it said it expects a "modest" improvement in the chip industry in 1997, and warned that its chip business won't have "double-digit" operating margins in 1997.

Ben & Jerry's Homemade Inc. fell $1.625 to $11.625 after the ice cream company forecast a first-quarter loss in the range of 12 cents to 15 cents a share. And Outback Steakhouse Inc. tumbled $4.50 to $19.125 after the restaurant operator said it expects fiscal first-quarter earnings to be 10 percent to 12

percent below analysts' estimates because of slower-than-expected sales.

First Union Corp. rose $1.375 to $89.375; KeyCorp gained $1.375 to $52.75; Norwest Corp. jumped 62.5 cents to $49.875; Barnett Banks Inc. climbed 87.5 cents to $49.625; PNC Bank Corp. rose 50 cents to $42.50; Wachovia Corp. rose 50 cents to $60.125 and NationsBank Corp. rose 62.5 cents to $58.625.

Yesterday's most active stocks in U.S. trading were Cisco Systems Inc., Kodak, Fore Systems Inc., Microsoft Corp. and Intel Corp.

CapMAC Holdings Inc. shares fell $3 to $26.50 after the company said a decline in advisory fees and a loss of as much as $4 million on its investment in a derivatives firm will result in lower-than-expected first-quarter earnings.

Columbia Laboratories Inc. dropped $1.125 to $14. Sturza's Medical Investment Letter said the company could have regulatory problems with its fertility drug Crinone, a contention the company disputed.

Florida Panthers Holdings Inc. rallied $1.875 to $28.25 after agreeing to acquire Boca Raton Hotel & Club for $325 million in stock and debt, more than doubling billionaire H. Wayne Huizenga's expansion into the hotel and resort industry.

Geoworks tumbled $4.75 to $7.25. The maker of software for cell phones said fourth-quarter sales will be lower than expected.

Pub Date: 3/22/97

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