Dow falls 37 points

Nasdaq climbs 29

Computer issues up again, but AT&T declines $3.375

Wall Street

April 24, 1999|By BLOOMBERG NEWS

NEW YORK -- Stock prices ended narrowly mixed yesterday in a session marked by profit-taking after Wall Street's three-day rally.

Computer shares rallied for a fourth day, buoyed by optimism for industry profits.

A slump in AT&T Corp., on concern that its $62.5 billion bold bid for MediaOne Corp. will hurt earnings, pulled the Dow Jones industrial average lower.

International Business Machines Corp. soared to a record. The world's biggest computer maker gained $28 billion in market value this week, after reporting higher-than-expected profit and sales.

Among major indexes, the Dow dropped 37.51 points to 10,689.67; the Standard & Poor's 500 index slid 1.97 to 1,356.85; and the Nasdaq composite index, full of computer shares, climbed 29.08, or 1.1 percent, to 2,590.69, capping its second-best four-day gain ever.

Elsewhere on the broad market, the Russell 2,000 index, a benchmark of small-cap stocks, rose 2.88 to 431.73; the Wilshire 5,000 index slid 13.43 to 12,394.46; the American Stock Exchange composite index advanced 11.98 to 770.36; and the S&P 400 midcap index added 0.64 to 389.90.

The Sun-Bloomberg Maryland index of the top 100 Maryland stocks gained 0.67 to 182.10.

Fifteen stocks rose for every 14 that fell on the New York Stock Exchange, where 744.9 million shares traded.

IBM jumped $5.25 to $199.75; Cisco Systems Inc. rose $4.1875 to $117.375; and Microsoft Corp. climbed $1.0625 to $86.

3Com Corp. shares soared $3.50, or 16 percent, to $25.8125 amid speculation that the No. 2 networking company may sell some of its less-profitable businesses or be acquired by a large phone-equipment maker. 3Com was the second-biggest gainer in the S&P 500 this week, finishing up 25 percent. jumped $20.0625, to $210.125 and eBay Inc. rocketed $28.125 to $200.125 in Nasdaq trading, both on anticipation of strong earnings reports next week.

For the week, the Dow average rose 1.9 percent, the S&P 500 gained 2.9 percent and the Nasdaq jumped 4.3 percent.

MediaOne Corp. shot up $7.875 to $77.375, pulling other cable companies with it, after receiving a $62.5 billion offer from AT&T Corp. Adelphia Communications Corp. climbed $2.50 to $63.75; and At Home Corp., which sells Internet services over the cable television network, rocketed $13.0625 to $158.50.

Cox Communications, which agreed to buy Media General Inc.'s cable systems for $1.4 billion in cash, rose $1.25 to $73.75.

AT&T slumped $3.375 to $53.375. Last month, it bought Tele-Communications Inc., the No. 2 U.S. cable provider, for $59.4 billion.

Merck & Co. fell $2.125 to $75.75 after reporting first-quarter profit that met analysts' expectations. Inc., which runs a Web site where consumers bid on airline tickets and hotel rooms, rose $11.625 to $88 after two Goldman, Sachs & Co. analysts added it to the firm's recommended list and said the stock could reach $120 in six to 12 months.

E*Trade Group Inc., the No. 3 online brokerage, gained $8.0625 to $104.0625 after announcing a 2-for-1 stock split, payable after the market closes May 21 to shareholders of record May 7. The stock has quadrupled this year.

Verisign Inc. fell $15.625 to $131.0625 after the maker of security software for online transactions was downgraded to "neutral" from "outperform" by analyst Mary Meeker at Morgan Stanley Dean Witter & Co. The stock has risen further than justified, Meeker said.

Chock Full O' Nuts Corp. rose $3.125 to $9.50 after it rejected a bid by Sara Lee Corp. to buy the coffee maker for $10.50 a share, a 65 percent premium over Chock Full O' Nuts' closing share price Thursday. The company called the offer "inadequate."

Compuware Corp. rose 90 cents to $20.50 yesterday, the software maker climbing 18 percent for the week after unveiling a suite of products to help software developers.

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