Stocks post mixed close global woes slow gains

Dow falls 36.05, S&P 500 up 5.74

Coca-Cola, others with big non-U.S. sales off

Wall Street

September 23, 1998|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks were mixed yesterday as investors bought drugmakers such as Pfizer Inc. as havens from slowing )) economies worldwide.

Coca-Cola Co., which gets 85 percent of its revenue abroad, dragged down the Dow Jones industrial average. The Dow fell 36.05 to 7,897.20, with Coke accounting for almost one-third of the drop.

The Standard & Poor's 500 index rose 5.74 to 1,029.63. The Nasdaq composite index climbed 17.37 to 1697.80.

Among other broad indexes, the Russell 2000 index of small companies outperformed the Dow, S&P 500 and Nasdaq, rising 5.60, or 1.5 percent, to 368.24; the Wilshire 5,000 index gained 71.12 to 9,452.79; the American Stock Exchange composite index jumped 5.12 to 633.45; and the S&P 400 midcap index added 2.61 to 309.97.

The Sun-Bloomberg Maryland index, which tracks the top 100 Maryland stocks by market valuation, gained 3.17 to 183.85.

Advancing stocks outnumbered decliners by a 19-to-11 ratio on the New York Stock Exchange.

Drugmakers led the gains in the S&P 500. Schering-Plough Corp. rose $4.50 to $101.625. Pfizer, down 18 percent yesterday from its mid-July high, gained $3.625 to $101.4375.

Eli Lilly & Co. rose $3.5625 to $79.875.

Gains were tempered by Coke and other companies that rely on non-U.S. markets for a significant percentage of sales.

Salomon Smith Barney analyst Jennifer F. Solomon cut her 1998 and 1999 earnings estimate on Coke, and lowered her 12-month target price to $59 from $83 a share.

The No. 1 soft-drink maker fell $2.8125 to $56.375, and is down 36 percent from its July 14 high.

Eastman Kodak Co., which competes with Japan's Fuji Photo Film and does a lot of business overseas, fell $1.9375 to $83.4375. Goldman, Sachs & Co. cut its investment rating on Kodak, saying the stock wasn't a big enough bargain compared with the S&P 500 Index.

Lucent Technologies Inc. gained 25 cents to $74.125 and Cisco Systems Inc. rose 62.5 cents to $62.875.

3Com Corp., the No. 2 maker of computer-networking equipment, reported fiscal first-quarter earnings of 26 cents a share, beating expectations of 20 cents.

3Com gained 31.25 cents to $32.375 ahead of the report, which came after the market closed, and the stock rose an additional $1.25 to $33.625 in electronic trading later.

NationsBank Corp. rose $2.0625 to $54; J. P. Morgan & Co.

gained $2 to $88.0625; and BankAmerica Corp. climbed $2.9375 to $60.375.

Cooper Cameron Corp. tumbled $5 to $29.25 after the Houston-based maker of oil and natural gas production equipment warned that earnings will fall below estimates in the third and fourth quarters as Asia's slump reduces sales.

Potash Corp. of Saskatchewan, Canada, the world's second-largest producer of nitrogen, slid $2.125 to $50.8125 after saying it expects third-quarter earnings of 90 cents to $1 a share, below the average estimate of $1.29. Prices for nitrogen, which is used as fertilizer, slumped 21 percent in the second quarter.

Pub Date: 9/23/98

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