Dow rises, but most indexes retreat

AOL skids $9 to $90.50 as Internet issues slide

Nasdaq loses 2%

June 15, 1999|By BLOOMBERG NEWS

NEW YORK -- The Dow Jones industrial average gained, led by DuPont Co. and General Electric Co., on expectations that manufacturers will be able to raise prices for their goods, but more stocks fell than rose as the Nasdaq composite index suffered its biggest drop in 10 days as Internet shares slumped.

The Dow rose 72.82 to 10,563.33 after four straight losses. The Nasdaq lost 49.57, or 2 percent, to 2,398.31, its biggest drop since June 1. The Standard & Poor's 500 index rose 0.36 to 1,294.

Elsewhere on the broad market, the Russell 2,000 index, a benchmark of small-cap stocks, fell 6.48 to 431.53; the Wilshire 5,000 index skidded 55.89 to 11,829.38; the American Stock Exchange composite index slid 3.13 to 762.69; and the S&P 400 midcap index lost 2.76 to 396.07. The New York Stock Exchange composite index eked up 0.10 to 619.60.

The Sun-Bloomberg Maryland index of the top 100 Maryland stocks dropped 1.31 to 187.77.

Decliners outnumbered advancers by a 17-to-13 ratio on the New York Stock Exchange, where 669.4 million shares traded.

The S&P 500, pulled between rising cyclical shares and falling computer issues, was lifted by regional telephone companies after Qwest Communications International Inc., the No. 4 U.S. long-distance phone provider, offered to buy U S West Inc. and Frontier Corp.

Cyclical stocks -- those whose fortunes are most closely tied to economic ups and downs -- benefit from rising goods and services, said Joe Joshi, who oversees $1.5 billion as chief investment officer at Systematic Financial Management in Fort Lee, N.J.

DuPont rose $2.875 to $70.1875; 3M Corp. gained $3.3125 to $89.25; International Paper added $2.1875 to $54.4375; Union Carbide climbed $2.3125 to $53.8125; and Exxon Corp. advanced $2.1875 to $81.125.

America Online Inc., Charles Schwab Corp. and eBay Inc. led Internet shares lower. AOL fell $9 to $90.50 on investor concern that an interest rate increase will hurt Internet stocks because their high price-to-earnings ratios make them less attractive relative to bonds.

Schwab, the biggest discount broker, fell $10.3125 to $83.9375 after reporting that revenue-producing trades fell 28 percent in May to the lowest level since December.

eBay sank $29.875 to $136 after warning that its 22-hour outage last week will reduce second-quarter revenue by up to $5 million.

Schwab rival E*Trade Group Inc. dropped $5.75 to $32, and Ameritrade Holding Corp. sank $12.6875 to $66.0625.

U S West jumped $3.125 to $58, and Frontier rose $1.9375 to $57.375. Qwest's bid tops a $52.1 billion offer for the companies from Global Crossing Ltd. If successful, it would give Qwest millions of customers, helping it compete with AT&T Corp. and MCI WorldCom Inc.

Qwest fell $10.75, or 24 percent, to $34.125, contributing the most to the Nasdaq's decline and triggering concern that the company may not be able to proceed with its cash-and-stock bid.

Becton Dickinson & Co. fell $8.75, or 22 percent, to $30.3125 after the largest U.S. maker of medical syringes said earnings will fall short of expectations.

Superior Services Inc. gained $2.8125 to $26.5625 after Vivendi SA, the world's largest water and environmental services company, agreed to buy the Milwaukee-based waste services company for about $1 billion to increase its presence in the United States.

Coach USA Inc. rose $2.75 to $41.375 after Stagecoach Holdings PLC, Britain's biggest bus and train company, agreed to buy the largest U.S. charter bus and tour operator for $1.88 billion in cash and assumed debt.

Pfizer Inc. fell $2.375 to $95.125 after the No. 2 U.S. drugmaker said an advisory board to the European Commission recommended a 12-month suspension of sales of the antibiotic Trovan because of concerns about liver damage in rare instances.

Pub Date: 6/15/99

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