Nasdaq races to new high Dow off 11

Intel leads rally in semiconductors

Kodak surges $8.75

July 16, 1998|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks were mixed yesterday, as the Nasdaq composite index set its sixth straight record after bullish sales forecast by Intel Corp.

Investors bought Eastman Kodak Co. and other companies that topped earnings estimates, and punished Caterpillar Inc. and Whirlpool Corp. for falling short.

The Nasdaq soared 26.13, or 1.3 percent, to 1994.54. The index, packed with computer companies, is up 27 percent this year.

The Dow Jones industrial average fell 11.07 to 9,234.47 after topping 9,300 for the first time, and the Standard & Poor's 500 index fell 2.77 to 1,174.81.

Among other broad indexes, the Russell 2,000 index of small capitalization stocks rose 2.35 to 461.98; the Wilshire 5,000 index fell 9.80 to 11,014.60; the American Stock Exchange composite index lost 1.81 to 730.39; and the S&P 400 midcap index added 2.36 to 372.19.

The Sun-Bloomberg Maryland index, which tracks the top 100 Maryland stocks by market valuation, gained .07 to 233.34.

About 15 stocks fell for every 14 that rose on the New York Stock Exchange. About 724 million shares changed hands on the Big Board, well above the three-month daily average of 608 million.

Intel, up $3.5625 to $84.25, led a rally in semiconductor shares. Investors looked beyond weak second-quarter earnings and the drag that Asian economic turmoil has put on sales, and focused instead on the bellwether computer-chip maker's prediction that sales will improve for the rest of the year. The forecast indicated that a worldwide semiconductor slump may be ending.

Eastman Kodak Co. soared $8.75, or 12 percent, to $82.50, its biggest gain since 1990. Profit at the world's largest photography company dropped in each of the past six quarters.

Caterpillar, the world's largest maker of construction equipment, fell $4.25 to $52 after reporting that second-quarter earnings rose less than expected because of weaker Asian sales and higher costs.

Whirlpool, the world's largest appliance maker, fell $5.375 to $63.9375. Its profit from continuing operations of $1.05 a diluted share beat forecasts by a penny, but investors were discouraged by slow sales in Brazil.

Drugmakers declined, dragging the market down from early highs. Pfizer Inc. fell $2.50 to $116; Eli Lilly & Co. skidded $2 to $63.125; and Schering-Plough Corp. lost $1.0625 to $102.625.

Bank shares also dropped. BankAmerica Corp. lost $2.75 to $96.5625; NationsBank Corp. fell $1.875 to $86; and Citicorp dropped $2.875 to $174.

Ford Motor Co. fell $1 to $59.50 after the nation's No. 2 automaker's earnings came in at less than some investors expected.

Compaq Computer Corp., the world's largest computer maker, fell 12.5 cents to $33.1875, after reporting better-than-expected second-quarter profit of 2 cents a share as it cleared out a glut of machines that dragged down first-quarter earnings.

Time Warner Inc. rose $1.875 to a record $93.125 after the world's largest media company reported second-quarter profit of 4 cents a share after the payment of preferred dividends. Analysts expected a loss of 4 cents.

Aluminum Co. of America, one of the 30 Dow industrials, rallied $3.75 to $72.375, after the world's largest aluminum producer said it will cut $1.1 billion in costs by the end of 2000.

Cable television stocks jumped after Morgan Stanley Dean Witter & Co. analyst Richard Bilotti said the share prices should be higher to reflect the potential of providing telephone services via cable systems, and the lower interest rates that make it cheaper to finance the business.

Comcast Corp. rose 81.25 cents to $48.0625; Cox Communications Inc. gained $3.25 to $50.5625; Cablevision Systems Corp. rallied $1.1875 to $89.6875; and Tele-Communications Inc. jumped $1.375 to $41.375.

Pub Date: 7/16/98

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