Stocks advance Dow adds 60 points

Lower prices on many issues attract buyers

Wall Street

November 01, 1997|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks rose yesterday as investors snapped up shares at some of the lowest prices in months.

The Dow Jones industrial average gained 60.41 to 7,442.08. The average tumbled 6.3 percent in October, with the bulk of the retreat this week.

Chevron Corp., trading at its lowest price in about eight weeks, led the Dow industrials higher.

Chevron shares finishing up $2.6875 to $82.9375 after the huge petroleum company confirmed that its discovery off the Angolan coast could contain 1 billion barrels of oil.

Bank issues rebound

The Standard & Poor's 500 index rose 10.94 to 914.62, paced by a rebound in the shares of banks, which had slid Thursday on concern that international loan portfolios are at risk.

The Nasdaq composite index gained 23.20 to 1,593.61, as investors moved back into Intel Corp. and other computer companies that tumbled this week because of their relatively large sales in Asia.

Among other broad market indexes, the Russell 2,000 index of small capitalization stocks rose 4.60 to 433.26; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, climbed 101.55 to 8,865.25; the American Stock Exchange composite index added 4.91 to 675.75; and the S&P 400 mid-cap index gained 3.42 to 316.89.

Advancing stocks outnumbered decliners 20 to 9 on the New York Stock Exchange.

Drug stocks strong

Among pharmaceutical stocks, Warner-Lambert Co. surged $5 to $143.375; Eli Lilly & Co. gained $1 to $67; and Merck, which had tumbled $8.375 Monday, climbed $1.50 to $89.

NationsBank Corp., up $1.3125 to $59.8125, and CoreStates Financial Corp., $4.75 higher to $72.75, led regional banks.

CoreStates hired Credit Suisse First Boston to advise it on its options, people familiar with the situation said, which could mean that the bank is for sale.

Papers retreat

International Paper Co., down $1.375 to $45, fell the most of the 30 stocks that make up the Dow index. Merrill Lynch & Co. told investors to reduce holdings in the paper industry, because Asian woes could aggravate pricing pressures.

Georgia-Pacific Corp. dropped $1.9375 to $84.8125. Weyerhaeuser Co. slid 6.25 cents to $47.75.

J. P. Morgan & Co., unchanged at $110.375, and Citicorp, up 12.5 cents to $125.0625, did not participate in the rally of bank issues amid lingering concern that declines in their large bond and derivatives businesses in Asia and Latin America could hurt earnings.

Semitool Inc., a maker of machines used in computer-chip production, rose $1.0625 to $17.25 after reporting that its quarterly earnings rose to 32 cents a share from 24 cents a year earlier, beating the average estimate of 26 cents.

Kellogg Co. reported third-quarter earnings of 52 cents a share, beating the average estimate by 3 cents. Its shares rose $1.375 to $43.0625.

Verdict helps tobacco issues

Tobacco shares gained after a Florida jury cleared RJR Nabisco Holdings Corp. of responsibility for a woman smoker's lung cancer. RJR shares rose $1 to $31.5625. American depositary receipts of B.A.T Industries, maker of Benson & Hedges, rose 25 cents to $17.875.

Philip Morris Cos. rose 75 cents to $39.625.

The world's largest cigarette maker, which boasted of strong Asian sales this quarter, has been trading close to its April lows.

Cohr Inc. slumped $3 to $10.50 after the medical-equipment supplier said it expects net income of 19 cents a share for its fiscal second quarter ended Sept. 30, less than the 25-cent average estimate of analysts.

Pub Date: 11/01/97

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