Intel leads Nasdaq advance Computer issues star on a day when Dow falls 1.74 points, to 8,711

June 23, 1998|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks generally rose yesterday, led by Intel Corp. and other computer-related shares that advanced on expectations that their worst days are behind them.

The glut of personal computers is over, and demand for semiconductors is likely to pick up soon, analysts and investors said.

The Nasdaq composite index, dominated by computer issues, gained 24.53, or 1.4 percent, to 1,805.82, its first trip above 1,800 in nine sessions. That outpaced the Dow Jones industrial average, which fell 1.74 to 8,711.13, and the Standard & Poor's 500 index, up 2.55 to 1,103.20.

Among other broad market indexes, the Russell 2,000 index of small capitalization stocks rose 3.18 to 441.65; the Wilshire 5,000 index gained 39.53 to 10,365.39; the American Stock Exchange composite index inched up 0.02 to 693.49; and the S&P 400 midcap index added 3.63 to 352.35.

Volume on the NYSE totaled 532.6 million shares, down from 695 million Friday. Stocks making new 52-week lows outnumbered new highs by 379 to 178 on U.S. exchanges.

Intel, the world's biggest computer-chip maker, rose $3.875 to $73.875, its biggest gain in two months. More than 20 million shares changed hands, making Intel the most active stock in U.S. trading.

Stocks also got a boost from rising oil shares, as crude oil futures gained on expectations that OPEC will agree on further output cuts when the 11-member group of oil-producing nations meets tomorrow.

Texaco Inc. rose $1.125 to $67.375; Exxon Corp. gained 56.25 cents to $70.625; Mobil Corp. added 68.75 cents to $76.625; and oil field services company Schlumberger Ltd. rose $1.125 to $67.375.

Crude oil for July delivery rose $1.59, or 13 percent, to $13.43 a barrel on the New York Mercantile Exchange -- the biggest percentage jump since January 1991.

General Re Corp., bought by investor Warren Buffett's Berkshire Hathaway Inc. last week, rose $39.25 to $259.50 on the New York Stock Exchange. Berkshire will pay $21.4 billion, or $271.25 a share, in stock for General Re, the largest U.S. reinsurance company -- a 23 percent premium to its closing price Friday.

Berkshire's Class A shares closed down $3,400 to $77,500 after touching a record $84,000.

The Philadelphia Stock Exchange's semiconductor index gained 4.3 percent. Texas Instruments gained $1.8125 to $56, and Xilinx rallied $2.2188 to $34.3438.

Software companies gained. BMC Software Inc., which makes programs that run mainframe computers, rose $2.6875 to $49.6875; computer game maker Electronic Arts Inc. jumped $3 to $52.50; and Parametric Technology Co., a maker of industrial automation software, gained $1.0625 to $31.8125. Microsoft Corp. added $1.125 to $95.8125.

Broderbund Software rose $2.25 to $18.75 after it agreed to be acquired by the Learning Co. for $420 million, or $20 a share, a 21 percent premium to Friday's close.

Dell Computer Corp. rose $3.125 to $87.875 and International Business Machines Corp. gained $2 to $108.125.

Cincinnati Milacron Inc., a maker of machine tools, fell 56.25 cents to $25.6875 after warning that second-half sales and earnings would be lower than analysts expected because of the effect of the Asian crisis on its domestic customers as well as a strike that has shut down most of General Motors Corp.

Pub Date: 6/23/98

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