Stocks rise, but Dow closes down 14.17 Higher world markets set stage for U.S gains on day of light trading

November 27, 1997|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks rose yesterday, but losses in Procter & Gamble Co. and Coca-Cola Co. dragged down the Dow Jones industrial average.

For a second day, investors bought telephone stocks such as Bell Atlantic Corp., which offer the safety of consistent earnings and above-average dividend yields when the outlook for corporate profit growth is clouded by slowing economies in Asia. Rising stock markets around the world set the stage for yesterday's gains in the United States, even though investors say the worst may not be over in Asia.

The Dow fell 14.17 to 7794.78. Coca-Cola closed down $1.75 to $62.375 and Procter & Gamble finished down $2.0625 to $75.6875, accounting for the Dow's drop.

Coke has risen 20 percent through yesterday from the Dow's 7.2 percent plunge Oct. 27, and Procter & Gamble has climbed 18 percent; Bell Atlantic rose 10 percent during that period, and the Standard & Poor's 500 gained 8 percent.

Broader market measures rose yesterday. The S & P 500 index rose 0.82 to 951.64; the Nasdaq composite index gained 5.46 to 1,594.50; the Russell 2,000 index of small capitalization stocks rose 1.25 to 428.16; the Wilshire 5,000 index, made up of stocks on the New York, American and Nasdaq exchanges, climbed 13.92 to 9,108.12; the American Stock Exchange composite index inched up 0.69 to 662.49; and the S&P 400 midcap index gained 1.78 to 321.49.

Advancing stocks outnumbered decliners 1,654 to 1,206 on the New York Stock Exchange.

Prices moved little after an early jump, befitting the traditionally slow day before Thanksgiving. The Dow industrials traded in a 52-point range, and some traders worked on crossword puzzles or watched television.

About 485 million shares traded in the lightest trading day since Veterans Day, Nov. 11. Volume has averaged about 542 million shares a day recently.

The market is closed today for the holiday and will close tomorrow at 1 p.m. Eastern time, three hours early.

Stocks benefited from a 1.1 percent rally in Japan's benchmark Nikkei 225 index. The Nikkei recovered some of Tuesday's 5 percent plunge triggered by the collapse of Yamaichi Securities Co., the country's oldest brokerage.

The S&P Telephone Index contributed the most to the S&P 500's gain. SBC Communications Corp. rose $3.6875 to $73; Bell Atlantic rose $1.625 to $88.3125; and U.S. West Communications Group gained 87.5 cents to $45. All reached records.

Among long-distance companies, Sprint Corp. climbed $1.50 to $58.50 and GTE Corp. gained $1.75 to $49.875.

Among aerospace stocks, Lockheed Martin, up 4.8 percent this year, rose $2.4375 to $95.9375, and Raytheon Co., up 14.2 percent, rose $1.9375 to $55. The S&P 500 is up 28.5 percent this year.

Computer shares also gained, while soft-drink, food and household products stocks fell.

Companies that make the equipment used in manufacturing semiconductors slumped. Teradyne Inc. fell $3 to $32.875; Novellus Systems Inc. dropped $2.125 to $37.875; and Lam Research Corp. lost $1.5625 to $30.875.

The Philadelphia Stock Exchange's semiconductor index has fallen 28 percent from its high Aug. 20.

Intel Corp. added 18.75 cents to $76.625. Other computer-related stocks gained. Microsoft Corp. rose $2.5625 to and Dell Computer Corp. gained $2.5625 to $83.875.

Great Atlantic & Pacific Tea Co. tumbled $5.8125 to $30 after the food retailer said it expects earnings for the fiscal third quarter that ends Saturday to be less than a year earlier, when it was 37 cents a share. Analysts polled by IBES International Inc. expected A & P to earn 44 cents.

Sara Lee Corp. fell $1.5625 to $52.75 after Prudential Securities Inc. analyst John McMillin cut his ratings on Sara Lee, Nabisco Holdings Corp. and Hershey Foods Corp. to "hold" from "buy."

Pub Date: 11/27/97

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