NEW YORK -- U.S. stocks were mixed yesterday as two big bank mergers boosted financial firms, while higher bond yields hurt telephone companies.
The Dow Jones industrial average rose 17.44 to 9,012.30, just 21 points shy of its record close. J. P. Morgan & Co., the biggest gainer, soared $7.0625 to $47.625.
The Standard & Poor's 500 index fell 0.98 to 1,109.69. The Nasdaq composite index rose 4.71 to 1,824.95.
Among other broad market indexes, the Russell 2,000 index of small capitalization stocks slipped 0.48 to 479.56; the Wilshire 5,000 index of stocks on the New York, American and Nasdaq exchanges lost 3.70 to 10,567.53; and the American Stock Exchange composite index slid 2.29 to 738.32. The S&P 400 midcap index added 1.68 to 370.12.
The Bloomberg Maryland index, which tracks the top 100 stocks in Maryland by market valuation, fell 0.06 to 239.38.
Banks rose on expectations that more industry consolidation is in store, after NationsBank Corp. said it would merge with BankAmerica Corp. and Banc One Corp. agreed to buy First Chicago NBD Corp.
Bonds fell after the Federal Reserve said it sold Treasury bills on behalf of an undisclosed customer. The yield on the benchmark 30-year Treasury bond dropped 4 basis points to 5.92 percent.
Several companies rallied ahead of releasing earnings later in the week: International Paper Co. gained $2.8125 to $51; Eastman Kodak Co. added $2.9375 to $67; and Intel Corp. rose $2.50 to $76.25.
Three computer-driven buy programs added 55 points to the Dow, helping it erase a 69-point loss, according to Birinyi Associates Inc., a Greenwich, Conn. research firm.
J. P. Morgan contributed 28 points to the Dow average. Without that, the Dow would have been down for the day.
NationsBank led gainers in the S&P 500, jumping $4.1875 to $80.625 after it and BankAmerica agreed to the biggest bank merger ever in a transaction valued at about $65 billion. BankAmerica rose $4.625 to $91.125.
First Chicago rose $2.25 to $96.25 after Banc One said it would acquire the company for $30 billion in stock. Banc One was unchanged at $61.75. It's up 25 percent so far this year.
Chase Manhattan Corp. gained $4.75 to $146.375, and Bankers Trust New York Corp. rose $5.1875 to $133.6875; Wells Fargo Corp. jumped $18.8125 to $370.9375 and Mellon Bank Corp. rose $3.9375 to $73.
Unexpectedly strong earnings from Merrill Lynch & Co., Donaldson, Lufkin & Jenrette Inc. and PaineWebber Group Inc. propelled their shares higher. Merrill gained $4.0625 to $99; DLJ rallied $7.375 to $101.25; and PaineWebber rose $2.0625 to $45.9375.
BellSouth Corp. fell $2.625 to $63.9375, leading telephone shares lower.
Yesterday's losers included Johnson & Johnson, Caterpillar Inc., Enron Corp., Compaq Computer Corp. and Sun Microsystems Inc., all of which are expected to report earnings this week.
Declining issues outnumbered advancers by almost 3 to 2 on the New York Stock Exchange.
A little over 566 million shares changed hands, up from 546 million Thursday before the Good Friday holiday.
K-tel International Inc. shares soared 125 percent, rising $8.3125 to $14.9375 after the marketer of recorded music said it will introduce an online music sales service. K-tel's volume was 1.8 million, almost 100 times its daily average.
Other Internet-business shares also gained. DoubleClick Inc., which went public Feb. 20, rocketed $5.9375 to $46.9375 after the Internet advertising company's chief executive said on CNBC that the company will be profitable next year.
ISS Group Inc., an Internet security company that went public March 24, rose $5.8125 to $51.
Fastenal Co. jumped $5.50 to $46.25 after reporting that profit grew 41 percent, 2 cents ahead of expectations, on higher sales of fasteners and other industrial and construction supplies.
Pub Date: 4/14/98