Stocks dip again, led by IBM's slide of $17

Dow falls 2.4 percent for week, closing at 9,120, losing gain for the year

January 23, 1999|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks fell for a second day yesterday, led by IBM Corp. after it reported earnings that fell short of the most optimistic forecasts.

The Dow Jones industrial average fell 143.41, or 1.6 percent, to 9,120.67. The Standard & Poor's 500 Index dropped 9.97, to 1,225.19, and the Nasdaq composite index slipped 5.84, to 2,338.88, paring a 40-point drop as Internet shares rebounded from two days of losses.

Three stocks fell for every two that gained on the New York Stock Exchange.

For the week, the Dow average fell 220 points, or 2.4 percent, and the S&P 500 dropped 1.5 percent. Both lost all their gains for the year.

The Nasdaq composite sank 0.4 percent for the week, but is up almost 7 percent this year.

Elsewhere on the broad market, the Russell 2,000 index of small-cap stocks slid 1.61 yesterday to 422.44; the Wilshire 5,000 index skidded 78.51, to 11,290.33; the American Stock Exchange composite index slipped 0.30, to 704.69; and the S&P 400 midcap index fell 1.11, to 376.25.

The NYSE composite index fell 4.28, to 583.75,

The Sun-Bloomberg Maryland index lost 0.95, to 189.82.

IBM fell $17, to $180, accounting for half of the Dow's decline. The world's largest computer maker reported net income of $2.47 a share, beating the average forecast by 2 cents.

American Express Co., down $4.3125, at $98.1875; Merck & Co. Inc., down $2.3125, to $144; J. P. Morgan & Co. Inc., down $2.75, to $103.125; and General Electric Co., down $1.4375, to $97.875, contributed to the Dow's decline.

Among consumer stocks, Colgate-Palmolive Co. fell $1.8125, to $75.25, and Kimberly-Clark Corp. lost $2.25, to $48.0625.

Compaq Computer Corp. lost $1.625, to $46.0625, and Dell Computer Corp. dropped $1.1875, to $83.

Amazon.com Inc. gained $17 to $123, after losing a quarter of its value in the previous three days. Yahoo! Inc. rallied $21, to $286, but is down 31 percent since Jan. 11.

Excite Inc., the No. 2 Internet directory and search service, rose $2, to $87.875, after reporting fourth-quarter earnings of 4 cents a share, matching estimates. Excite agreed to be purchased by high-speed Internet access provider @Home Corp. this week.

America Online Inc. slid 37.5 cents, to $140.625.

Sun Microsystems Inc., one of the biggest makers of computers that run Internet sites, fell 25 cents, to $98.0625, after it reported profit before charges of 67 cents a share for the second quarter that ended Dec. 27, missing the highest estimate by 2 cents.

BMC Software Inc. rose $5.375, to $43.9375, after the company, which makes software that helps corporate computer systems manage data, reported a fiscal third-quarter profit that beat expectations.

J. P. Morgan & Co. and other banks fell on concern that they may be saddled with bad debt from companies in Latin America. J. P. Morgan dropped $2.75, to $103.18. Chase Manhattan Corp., which has $3.1 billion in exposure to Brazil, fell $3.50, to $71.875. BankBoston Corp., which has offices in Brazil and Argentina, fell $1.125, to $37.625.

In Asia, Japan's Nikkei stock average fell 0.64 percent and Hong Kong's Hang Seng Index fell 3.1 percent. In Europe, Germany's DAX index fell 3 percent.

Pub Date: 1/23/99

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.