Stocks end week in downward spiral

Nasdaq falls 22 points, led by Microsoft Corp.

Dow drops to 10,829

Wall Street

May 22, 1999|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks fell yesterday, led by computer-related shares such as Microsoft Corp., as investors shifted from large companies that gained the most in recent years to laggards, including small stocks and utilities.

The Nasdaq composite index, packed with computer companies, slumped 22.09 to 2,520.14. The Dow Jones industrial average declined 37.46 to 10,829.28, and the Standard & Poor's 500 index lost 8.54 to 1,330.29.

The Russell 2,000 index of small stocks rose 1.12 to 449.14, its fourth straight gain. The Wilshire 5,000 index slumped 70.98 to 12,253.43; the American Stock Exchange composite index advanced 3.34 to 795.37; and the S&P 400 midcap index slipped 0.93 to 403.01.

The Sun-Bloomberg Maryland index slid 1.26 to 193.76.

Advancing shares outnumbered decliners by a 16-to-13 ratio on the New York Stock Exchange, where about 691.5 million shares traded.

For the week, the Dow lost 0.8 percent, the S&P 500 fell 0.6 percent and the Nasdaq slid 0.3 percent. The Russell 2,000 rose 1.4 percent.

Dell Computer Corp., the No. 1 direct seller of personal computers, slumped 93.75 cents to $37.3125, and Compaq Computer Corp., the world's No. 3 computer manufacturer, fell 43.75 cents to $25.0625. Dell, one of the top performing stocks this decade, has returned 2 percent this year, and Compaq is down 40 percent.

International Business Machines Corp., the world's biggest computer maker, fell $3 to $229.875.

Microsoft Corp. fell 87.5 cents to $77.5625. Intel Corp. lost 68.75 cents to close at $57.

The Dow Jones utilities average gained 0.54 to 325.15, its third consecutive record, as investors sought havens in shares that carry relatively high dividends. Reliant Energy Inc., with a dividend yield of 4.9 percent, gained 68.75 cents to $30.875, and Consolidated Edison Inc., which trades with a yield of 4.5 percent, rose 62.5 cents to $48.0625.

Eastman Kodak Co. fell $2.5625 to $73 after analyst B. Alex Henderson at Prudential Securities said the world's biggest photography company may face a second-quarter profit squeeze as rival Fuji Photo Film Co. cuts U.S. film prices for the summer.

General Motors Corp., the world's largest automaker, and its Delphi Automotive Systems Corp., the No. 1 auto-parts maker, rose after it was announced that Delphi, which is to be spun off next week, will be added to the S&P 500 index at the close of trading Thursday. GM climbed $3.1875 to $83.3125. Delphi added 81.25 cents to $21.3125.

Exxon Corp. gained $2.75 to $82.75; Mobil Corp. rose $3.75 to $103.125; and Texaco Inc. climbed $1.75 to $66.125.

Cosmetics maker Revlon, a frequent topic of takeover speculation, rose $1.25 to $30.50, amid rumors it will be acquired by Coty, a fragrance company.

Overseas, Japan's Nikkei stock average rose 0.06 percent. Germany's DAX index rose 0.2 percent, Britain's FT-SE 100 slipped 0.2 percent and France's CAC-40 closed 0.5 percent lower.

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