P&G leads way back from steep descent Erratic market finishes with Dow index up 56

S&P 500, Nasdaq gain

Wall Street

August 06, 1998|By BLOOMBERG NEWS

NEW YORK -- Procter & Gamble Co., the only stock in the Dow Jones industrial average to rise on Tuesday, led the market's gainers yesterday in an up-and-down session.

P&G climbed $3.8125 to $81.5625 yesterday, after expanding a $1 billion buyback program.

The Dow average rose 59.47 points to 8,546.78, rebounding in the last 38 minutes of the session from a 125-point drop but finishing more than 300 points below where it began the week.

The Standard & Poor's 500 index rose 9.31 to 1,081.43 and the Nasdaq composite index gained 2.56 to 1,788.20.

Among other broad indexes, the Russell 2,000 index of small capitalization stocks slid 2.94 to 398.69; the Wilshire 5,000 index gained 36.66 to 10,008.21; the American Stock Exchange composite index lost 6.69 to 672.07; the New York Stock Exchange composite index rose 2.65 to 544.01; and the S&P 400 midcap index fell 3.10 to 329.17.

The Sun-Bloomberg Maryland index, which tracks the top 100 Maryland stocks by market valuation, fell 1.33 to 206.00.

Declining stocks led advancers by a 3-to-2 ratio on the NYSE. Only 40 issues reached 52-week highs on U.S. exchanges, and 1,214 stocks dropped to 52-week lows.

Companies whose fortunes are more vulnerable to economic cycles fell after the Federal Reserve said Asia is tempering strong growth and putting pressure on manufacturers' prices.

Goodyear Tire & Rubber Co. lost $3.50 to $53.375; General Motors Corp. fell $1.125 to $68.375; and United Technologies Corp. dropped $1.25 to $92.

Banks such as First Union Corp., among the worst performers Tuesday, gained. First Union rose $2.0625 to $57.375; BankAmerica Corp. rose $3.50 to $87.25; and NationsBank Corp. rose $1.9375 to $76.75.

Cisco Systems Inc. rose $3.625 to $96.75 after its fiscal fourth-quarter profit met analysts' expectations.

Cisco, the No. 1 maker of networking equipment, said its profit before a charge for the quarter that ended July 25 rose to 48 cents a diluted share from 37 cents before a gain and charges a year ago. Analysts expected 47 cents, according to First Call Corp.

Electronic Data Systems Corp. rose $1.75 to $36.75 after Standard & Poor's Corp. added the company to the S&P 500. About $626 billion is invested in funds that try to track that index, and those money managers will be required to buy the stock.

CBS Corp. slumped $2 to $31.6875. The company reported a rise in second-quarter profit, though the results fell short of expectations.

Investors and analysts also said they were surprised the company did not break out the results for its television network.

CBS, which declined to conduct a conference call with investors, also said it will triple its share buyback program to $3 billion.

AlliedSignal Inc. fell $3 to $37 on speculation that it will have to raise its bid for AMP Inc., the world's top maker of electronic connectors. AlliedSignal made a hostile offer yesterday for AMP, whose shares fell $4.50 to $38.0625 after gaining $13.9375 on Tuesday.

Aetna Inc. rose $4.625 to $69.75 after the nation's largest health insurer said second-quarter profit fell a less-than-expected 18 percent as the company got a better handle on its medical costs.

Pub Date: 8/06/98

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