NEW YORK -- U.S. stocks rose, sending the Dow Jones industrial average to a record, as unexpectedly strong earnings from Texas Instruments Inc. spurred optimism that computer makers will benefit from growing earnings this year.
The Dow average rose 52.73 to 7,975.71, within 25 points of 8,000. Hewlett-Packard Co. was the biggest gainer.
The Standard & Poor's 500 index rose 7.38 to 925.76. The Nasdaq composite index rose 18.23, or 1.2 percent, to 1,542.11, its ninth straight record.
Among broad market indexes, the Russell 2,000 small-stock index rose 2.55 to 406.40, its fourth straight record; the Wilshire 5,000 index jumped 62.56 to 8,763.66, its sixth record in a row; the American Stock Exchange composite index gained 2.32 to 634.95, about half a point below its record high; and the S&P 400 mid-cap index added 1.98 to 302.85, its fourth straight record.
Advancing stocks outnumbered those that declined by 1,527 to 1,348 on the New York Stock Exchange. Some 599 million shares changed hands.
Computer stocks gained. Texas Instruments soared $12 to a record $109.50 after the maker of semiconductors and electronics posted second-quarter profit of $1.13 a share, beating the average estimate of 84 cents. Profit surged more than fivefold, reflecting the company's decision to sell its defense business and plow the proceeds into digital signal processors, advanced chips used in everything from cellular phones to microwave ovens.
Hewlett-Packard, up $3.1875 to $68.25, benefited from optimism that that strong demand for computers in the second half will fuel growing profits.
Semiconductor bellwether Intel Corp., which reported earnings after the market closed, rose $2.15625 to $80.90625 on most-active volume of 33.9 million shares. The company said it earned 92 cents a share, exceeding analysts' expectations for 90 cents.
The Philadelphia Stock Exchange's semiconductor index soared 3.5 percent. The index has climbed 8.2 percent since Thursday, when Compaq Computer Corp. reported better-than-expected earnings and said demand for computers should be strong in the second half. The Morgan Stanley high tech index gained 6.4 percent in that time.
Microsoft Corp. rose $2.53.125 to $138.46875 and Cisco Systems Inc. gained $1.40625 to $77.96875.
International Business Machines Corp. gained 75 cents to $96. Compaq Computer Corp. and Dell Computer Corp. bucked the trend; Compaq fell $1 to $127.25 and Dell lost $1.4375 to $141.4375.
The Dow Jones transportation average rose 33.64 to a record 2,834.39, topping the previous mark of 2,821.62 set a week ago. AMR Corp., parent of American Airlines, rose $2.4375 to $96.0625.
The yield on the benchmark 30-year Treasury bond slid .01 to 6.54 percent.
Citicorp fell $3.125 to $125.375 after the country's second-largest bank said it earned $2.10 a share in the second quarter, a penny above the average estimate compiled by IBES International Inc.
Wells Fargo & Co. rose $1.50 to $267 after the California bank said it earned $2.49 a share in the second quarter, short of the $3.09 average estimate.
Chase Manhattan Corp. rose 56.25 cents to $102.5625 after reporting second-quarter profit from operations of $2.11 a share, beating the average forecast of $2.06.
Merrill Lynch & Co., the nation's largest brokerage, said it earned $1.24 a share, easily surpassing the 91-cent average estimate. The stock rose $2.375 to $66.0625.
American Express Co., which has been rising on takeover speculation, gained $1.4375 to $80.1875.
CCA Prison Realty Trust surged $7.875 to $28.875 on its first day of trading after a $388.5 million initial public offering. The spin-off from Corrections Corp. of America plans to buy prisons and then lease them under long-term leases.
Pub Date: 7/16/97
