Dow index ekes out another record

Industrials end day up 13 points, at 10,845

Nasdaq skids 2%

April 29, 1999|By BLOOMBERG NEWS

NEW YORK -- The Dow Jones industrial average climbed to a second straight record yesterday, as investors bought shares of manufacturers such as Alcoa Inc. and DuPont Co., encouraged by reports indicating faster growth in U.S. factory orders and Japan's economy.

America Online Inc. and Microsoft Corp. led a slump in computer-related stocks, leaving the broader U.S. market mixed, and McKesson HBOC Inc. plunged after the largest U.S. drug wholesaler restated earnings.

The Dow average gained 13.74 to 10,845.45. The Standard & Poor's 500 index fell 11.89 to 1,350.91, and the Nasdaq composite index dropped 52.04, or 2 percent, to 2,550.37.

A record for the Curb

Elsewhere on the broad market, the American Stock Exchange composite index rose 3.62 to 777.69, its second straight record, and the S&P 400 midcap index added 2.35 to 395.56, also a record.

The Russell 2,000 index, a benchmark of small-cap stocks, fell 1.63 to 433.53, and the Wilshire 5,000 index lost 95.07 to 12,360.23.

The Sun-Bloomberg Maryland index of the top 100 Maryland stocks slipped 0.19 to 183.37.

Advancers outnumbered decliners by a 17-to-13 ratio on the New York Stock Exchange, where 951.7 million shares changed hands.

The 10 companies that led the Dow's advance were "cyclical" stocks that depend most on economic growth for profits. Alcoa, the world's biggest aluminum producer, rose $6.625 to $62; DuPont, AlliedSignal Inc., Minnesota Mining & Manufacturing Co., Union Carbide Corp., Exxon Corp., International Paper Co., Chevron Corp., Goodyear Tire & Rubber Co. and Boeing Co. followed.

IBM costs Dow 28 points

International Business Machines Corp. fell $7 to $205, shaving 28 points off the Dow's advance.

The Nasdaq fell for a second day after five consecutive gains. Microsoft lost $1.875 to $82.125, and Cisco Systems Inc. lost $3.3125 to $111.75.

Chevron Corp. rose $2.8125 to $101.75; Schlumberger Ltd. climbed $3.625 to $63.50; Halliburton Co. gained $2.875 to $43.625; and Exxon Corp. added $3.25 to $81.50.

Coca-Cola Corp. slid $1.50 to $67.9375.

AOL dropped $7.50 to $145.50 as Internet shares sank.

MindSpring Enterprises Inc. lost $13.625 to $102.6875, as day traders dumped the shares after the Internet service provider re- ported a higher-than-expected profit. MindSpring is up 72 percent this year. Inc. dropped $13 to $192.875. The online retailer said after markets closed that its loss from operations widened to 23 cents a share in the first quarter, 6 cents less than expected, despite a 236 percent increase in revenue. The shares slipped to $189 in after-hours trading.

$31 tumble for McKesson

McKesson plunged $31.125 to $34.625, and was the most active stock in U.S. trading.

The company restated its earnings downward for the fourth quarter and the year, saying it had improperly recorded software sales, and said further revisions may be necessary. It also lowered its estimate for fiscal 2000 earnings.

Drug shares declined, led by Merck & Co., which slumped $2.75 to $70.8125, and Pfizer Inc., which lost $3.25 to $117.875.

DaimlerChrysler AG fell $2.1875 to $99.125. Europe's largest industrial company said earnings rose 23 percent, though it reported profit of 1.64 euros ($1.75), a penny short of analysts' average expectations.

MediaOne loses $1.75

MediaOne Group Inc. fell $1.75 to $80.0625. The third-largest U.S. cable television operator said it halved its first-quarter loss to $111 million, or 21 cents per share, from $222 million, or 38 cents a share, a year ago.

Proxim Inc. gained $5.625 to $38 in after-hours trading, after Intel Corp. said it bought a 2.9 percent stake in the maker of wireless computer networking equipment.

In foreign stock markets, the Nikkei index in Tokyo fell 0.09 percent; the FT-SE 100 in London set its second straight closing high, rising 0.1 percent to 6,598.8; the DAX index in Frankfurt, Germany, inched up 0.02 percent; and the CAC index in Paris eased 0.4 after hitting a record Tuesday.

Pub Date: 4/29/99

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