Stocks tumble across all indexes Only GM, Goodyear rise in Dow average

banking, phone issues pace sell-off

March 28, 1997|By BLOOMBERG NEWS

NEW YORK -- U.S. stock prices tumbled almost across the board yesterday, and broad-market indexes fell with them.

The Russell 2,000 index of small capitalization stocks fell 3.36 to 348.95; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, dropped 140.56 to 7376.83; the American Stock Exchange composite index lost 5.17 to 577.90; and the S&P 400 Midcap Index slipped 3.66 to 257.76.

Among Dow Jones industrial average stocks, Boeing Co. fell $3.50 to $101.75 and International Business Machines Corp. slid $3.25 to $137. Only two of the Dow's 30 stocks rose: General Motors Corp. gained 37.5 cents to $56.25 and Goodyear Tire & Rubber Co. climbed 37.5 cents to $54.25.

The day's biggest decliners were financial and telephone shares, which are among the most sensitive to rising interest rates. Banks' profits depend on the spread between borrowing and lending rates, while telephone companies' dividends look less attractive when bond yields rise.

BellSouth Corp. lost $1.75 to $42.375; Citicorp fell $2.625 to $111; NationsBank fell $1.875 to $57.875; insurer AIG slipped $3.625 to $121.625; and J. P. Morgan & Co. slid $2.75 to $102.75.

On the Nasdaq stock market, Intel Corp. fell $1.50 to $139.125; Microsoft Corp. fell 50 cents to $93.75; Motorola Inc. rose 18.75 cents to $61.125; Computer Sciences Corp. rose 75 cents to $62.375; and Cisco Systems Inc. dropped $1.375 to $51.

Medtronic Inc. surged $4 to $62.375 after the company told analysts that its pacemaker sales would grow faster than the overall market for the devices. William George, the company's chairman and chief executive, also said on a conference call that the company is offsetting the strengthening U.S. dollar by continuing to reduce product and overhead costs.

Barr Laboratories Inc. rallied $3 to $39.50 after the company said it had received U.S. Food and Drug Administration clearance to sell its generic version of DuPont Merck Pharmaceutical Co.'s drug Coumadin, which prevents blood clots.

C-Cube Microsystems Inc. shares slid $2.25 to $26 on concern the company might not meet earnings estimates because of slow demand in China. C-Cube makes chips that translate data on compact discs into video screen images.

NGC Corp. dropped $4 to $15.375 after the company said first-quarter earnings would not meet expectations because of lower margins on fuel sales, bad bets on the direction of propane prices and a write-down of the value of its inventory.

Pharmacyclics Inc. slid $2 to $16.25. The company said it needs to conduct additional testing on its Gadolite imaging agent that helps doctors get improved pictures of a patient's bowels, delaying U.S. regulatory approval by at least 18 months.

Vacation Break USA Inc. dropped $1.125 to $10 after the company scaled back its purchase of rival time-share resort developer Berkley Group to buy just the company's resorts for $122.8 million in stock and cash.

Pub Date: 3/28/97

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