Late surge lifts Dow, but many stocks fall Industrials up 90.88 points

decliners swamp gainers

Russell 2,000 off 1.2%

Wall Street

July 28, 1998|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks finished mixed yesterday after a late-day surge led by computer companies and American Express Co., which reported better-than-expected earnings.

The Dow Jones industrial average rose 90.88, or 1 percent, to 9,028.24, after having been down 81 points.

The Standard & Poor's 500 index rose 6.47 to 1,147.27, and the Nasdaq composite index rose 2.27 to 1,933.26, snapping back from a 43-point loss.

The rally was narrow. Decliners outnumbered advancers by a 2-to-1 ratio on the New York Stock Exchange.

The small-stock Russell 2,000 index dropped 5.42, or 1.2 percent, to 433.16. The tumble erased what was left of the Russell's 1998 gains.

Among other broad indexes, the Wilshire 5,000 index gained 10.42 to 10,670.28; the American Stock Exchange composite index lost 4.49 to 714.17; and the S&P 400 midcap index slipped 1.05 to 354.07.

The Sun-Bloomberg Maryland index, which tracks the top 100 Maryland stocks by market valuation, fell 2.51 to 223.37.

Computer-guided trading buoyed the market. Seven "buy" programs and six "sell" programs added a net 62 points to the Dow, according to Birinyi Associates Inc., a Greenwich, Conn., market research firm.

American Express rose $5.75 to $112.8125, sparking the late-afternoon rally, after the financial services company reported second-quarter earnings of $1.24 a diluted share.

Large computer-related shares rebounded, after sinking in the morning. Microsoft Corp. rallied $2.9375 to $116.75; Intel Corp. gained $3 to $86.0625; and Dell Computer Corp. surged $5.375 to $110.25.

American depositary receipts of Ericsson AB sank $6.125 to $27.5625 after the cellular phone company said global sales stagnated in the second quarter. By contrast, Finland's Nokia Oyj said sales in its mobile phone unit rose 50 percent as it unveiled new, sleek small phones. Almost 27 million Ericsson ADRs changed hands.

GTE Corp. fell $2.1875 to $55.75. The phone company held talks about a merger with Bell Atlantic Corp., said a person familiar with the discussions. A combination would give the companies control of about a third of the U.S. local phone service market.

AT&T Corp. rose 6.25 cents to $60 in the wake of its joint venture with British Telecommunications PLC to sell voice and data services to international businesses. BT's ADRs soared $8.375 to $146.125. WorldCom Inc., which will be competing against the alliance, fell 81.25 cents to $55.0625.

BellSouth Corp., which analysts say may be next in the industry's consolidation, rose $3.1875 to $72.1875, and was the biggest gain- er among U.S. telecommunications shares. BellSouth's logical merger partner is Sprint Corp., one analyst said.

Chubb Corp. fell 75 cents to $77.125 after the insurance company reported second-quarter earnings from operations of 90 cents, 8 cents short of expectations.

Pub Date: 7/28/98

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