Boeing, Caterpillar lead Dow downhill Other U.S. indexes end day with gains'

September 05, 1997|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks were mixed yesterday as investors swapped shares of big corporations such as Caterpillar Inc. for smaller ones they see as better values.

American Oncology Resources Inc. rose $2.4375 to $16.0625. The company, which sells management services to cancer specialists, led the Russell 2,000 Index up 0.93, or 0.2 percent, to 429.72, its sixth straight record. Russell index companies have market capitalizations of less than $3 billion.

The Dow Jones industrial Average, whose smallest stock is $9.6 billion Goodyear Tire & Rubber Co., fell 27.40 points, or 0.4 percent, to 7,867.24.

More than half the loss came from Caterpillar and Boeing Co., on concern that sales to Asia will decline.

The biggest percentage gainer in the Russell 2,000 was Hudson Foods Inc., which Tyson Foods Inc. offered to buy for $642.4 million, seizing an opportunity to buy its rival three weeks after Hudson recalled a record 25 million pounds of hamburger because of bacterial contamination.

The Nasdaq composite index, which includes both small and big companies, rose 6.39, or 0.4 percent, to 1,624.63, within 6 points of its Aug. 6 record.

Among other broad market indexes, the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, added 25.88 to 8,940.93; the American Stock Exchange composite index advanced 2.26 to a record 662.26; and the S&P 400 midcap index gained 1.04 to a record 320.70.

On the New York Stock Exchange, 1,507 stocks rose, while 1,321 fell.

Auto stocks were among the day's best performers after reports of rising sales from General Motors Corp. Wednesday and Ford xTC Motor Co. yesterday. GM rose 25 cents to $65.50; Ford rallied $1.5625 to $45.1875; and Chrysler Corp. rose. 43.75 cents to $36.1875.

Caterpillar fell $3.4375 to $56.375 after Tobias Levkovich of Smith Barney Inc. cut his investment rating on the stock amid concern that overseas revenue may slow.

Among companies tied to the construction and machinery industries, Ingersoll-Rand Co. slid 81.25 cents to $41.3125; Chicago Bridge & Iron Co. dropped 81.25 cents to 20.875; and Foster Wheeler Corp. dropped $1.75 to $43.9375.

Boeing dropped $1.1875 to $56.25.

Advanced Micro Devices Inc. sank $3.625 to $35.25 after warning of a third-quarter loss because of production snafus in its K6 microprocessors. That news helped rival chip maker Intel Corp. gain 81.25 cents to $94.625.

AMD's warning comes one day after Gateway 2000 Inc. said its earnings will drop far below estimates because personal computer sales failed to meet expectations. Gateway rose 68.75 cents to $33.50 yesterday, after falling $3.75 Wednesday.

Retailers rose after reporting August sales. Dayton Hudson Corp. said results were up 6.1 percent last month, and its shares rose $1.50 to $61.50. Wal-Mart Stores Inc. rose 6.25 cents to $38.0625, after reporting sales in stores open at least a year climbed 7.7 percent.

Limited Inc., which reported sales fell 1 percent, gained 81.25 cents to $24.8125. The company is planning to sell or spin off some of its retail businesses, the New York Times reported. Analysts say the company's Intimate Brands and Abercrombie & Fitch units, which are both partly owned by the public, could be spun off within a year.

Drug shares got a boost after Goldman, Sachs & Co. added both Warner-Lambert Co. and Bristol-Myers Squibb Co. to its "Recommend List."

Bristol-Myers jumped $2.1875 to $79.6875, and Warner-Lambert gained $3.8125 to $132.9375. Pfizer Inc. gained 43.75 cents to $57.50.

H&R Block Inc. rose 68.75 cents to $40.75. The tax, financial and information services company is nearing an agreement to sell most of its 80 percent interest in on-line computer services provider CompuServe Corp., the Wall Street Journal reported.

Pub Date: 9/05/97

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