Banks set pace as Dow rises 18 points Citibank, Wells Fargo leap

chip makers decline

Wall Street

December 05, 1997|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks were mixed yesterday, as Citicorp and other bank shares rallied on optimism that the Asian economic crisis won't saddle them with bad loans, and Intel Corp. led a decline in semiconductor stocks on expectations that demand for computers will fall.

Stocks retreated late in the day as traders sold bonds in advance of today's government report on jobs growth. Equity investors said the declines are likely to be short-lived.

The Dow Jones industrial average rose 18.15 to 8,050.16, giving up most of an 81-point gain. The Standard & Poor's 500 index fell 3.67 to 973.10, after setting an intraday record for the first time since Oct. 8.

Big gainers included Citicorp and Goodyear Tire & Rubber Co., a day after South Korea agreed to a $55 billion bailout that soothed investors concern about Asia.

Citicorp jumped $5.75 to $135.50 to lead the gain in banks that do business overseas. Intel fell $1.8125 to $76.6875.

Among other chip makers, Motorola Inc. fell $2.375 to $62.375 and Texas Instruments Inc. lost $2.25 to $44.50.

Personal computer maker Compaq Computer Corp. dropped $1.375 to $64.0625 and software company Microsoft Corp. lost $2.125 to $142.5625.

The Nasdaq composite index fell 1.71 to 1,613.42.

Among other broad market indexes, the Russell 2,000 index of small capitalization stocks added 1.10 to 434.91; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, lost 11.97 to 9,317.77; the American Stock Exchange composite index slid 3.30 to 665.80; and the S&P 400 midcap index gained .98 to 329.73.

Advancers outnumbered decliners 1,581 to 1,362 on the New York Stock Exchange. Some 632 million shares changed hands, 16 percent above the recent average.

Regional telephone stocks slipped from records. BellSouth Corp. dropped $2.3125 to $54.50; SBC Communications Corp. lost $2 to $72.9375; and Ameritech Corp. fell $1.875 to $78.1875.

Merck & Co. jumped $6.625 to $104.625, the biggest gain in the Dow industrials. The drug maker said yesterday that it's working on a new drug to treat depression that could rival Eli Lilly & Co.'s Prozac.

Wells Fargo & Co. soared $15.8125 to $332.0625 after the company's chairman and chief executive said in an interview he would consider a buyout offer for the bank. Wells Fargo is California's second largest bank, with a market value of almost $29 billion.

Goodyear rose $2 to $65.625 amid speculation that the decline in rubber prices tied in part to economic and currency problems in Asia will boost the tiremaker's earnings.

General Electric Co. fell 43.75 cents to $72.5625, yet is within $2 of its record of $74 set Monday.

The S&P 500 rose as high as 983.36, setting an intraday record for the first time since Oct. 8. The closing record for the benchmark index is 983.12 Oct. 7.

The yield on the 30-year Treasury bond rose 4 basis points to 6.05 percent.

Walt Disney Co. fell $1.625 to $93.5625 on news that Chairman Michael Eisner exercised options for 7.2 million shares and sold 5.4 million shares for about $500 million.

Navistar International Corp. jumped $2.625 to $26.4375. The company turned in its best fourth-quarter performance in nine years, as earnings rose more than fourfold and easily topped analysts' expectations on strong demand for its trucks and engines.

Airline stocks soared as crude oil prices fell to their lowest since June. US Airways Group Inc. rose $2 to $60.125; United Air Lines' parent UAL Corp. rose $3.4375 to $91.4375; and Delta Air Lines Inc. gained $1.9375 to $115.0625.

Anchor Gaming Corp. tumbled $11.50 to $52.50 after it said its fiscal second-quarter earnings are likely to be below analysts' estimates, citing a possible slowdown in its slot-machine business and winter storms that shut down its Colorado casinos.

Pub Date: 12/05/97

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