Surprising earnings tug stocks still higher Dow industrials climb 27 points; Nasdaq jumps 14


NEW YORK -- U.S. stocks climbed for a third day yesterday as Intel Corp., Chrysler Corp., Johnson & Johnson and dozens of other companies reported earnings that beat expectations.

The Dow Jones industrial average gained 27.10 to 5,620.02, lifted most by gains in Eastman Kodak Co., United Technologies Corp. and International Business Machines Corp. The 30-stock average dipped and then partly rebounded after a computer-guided series of sell orders in the last hour of trading.

The Standard & Poor's 500 index closed up 2.51 at 645.00 after rising 3.08. The Nasdaq composite index advanced 14.48 to 1,124.92, surpassing a record set April 4.

The number of advancing stocks outpaced declining issues by about 13 to 10 on the New York Stock Exchange, where 453 million shares changed hands.

Earnings from Intel, the country's largest maker of computer chips, and Sun Microsystems Inc. helped drive up computer stocks. Intel said it earned $1.02 a share in the first quarter, unchanged from the same quarter a year ago and 4 cents ahead of analysts' average forecast.

Intel climbed $4.25 to $64.875 and was the most active issue on U.S. exchanges as 23.9 million shares changed hands. The Santa Clara, Calif., company's earnings had been expected to fall because of slowing personal computer sales.

Other semiconductor stocks surged. Novellus Systems Inc. whose earnings jumped to $1.55 a share from 98 cents last year, vaulted $5 to $50.25. LSI Logic Corp. rose $2.125 to $33.25; Texas Instruments Inc. climbed $1.50 to $53.75; and Micron Technology Inc. advanced $1.25 to $33.875.

Cheyenne Software Inc., the eighth most active U.S. stock, leaped $5.25 to $21.625. The company spurned a $27.50-a-share, or $1.03 billion, takeover offer from rival McAfee Associates Inc. that valued it at 68 percent more than Monday's closing price.

Kodak said first-quarter earnings rose to 80 cents a share from 77 cents last year, 1 cent shy of estimates. The Rochester, N.Y.-based photography company also extended its stock buy-back program to a maximum $2 billion of common shares from the $1 billion it announced in October. Kodak surged $3.25 to $73.

Chrysler Corp., up 37.5 cents to $62.50, earned $2.64 a share in the first quarter, above the year-ago quarter's $1.33 and ahead of analysts' average forecast of $2.46 a share.

Other companies beating estimates included drug maker Johnson & Johnson, up $1.375 to $91.125; telephone companies Sprint Corp., ahead $1.25 to $39.50 and Ameritech Corp., up $1 to $56.375; specialty chip makers C-Cube Microsystems Inc., up $3.50 to $61.50, and Atmel Corp., ahead $3.625 to $33.25; and the New York Times Co., up 50 cents to $31.625.

Paper company stocks surged after a trade association said corrugated cardboard box shipments rose in March, the first monthly rise since May 1995.

Boise Cascade gained $3.50 to $46; Champion International jumped $2.875 to $49.875; and Georgia-Pacific Corp. rose $2.625 to $74.625.

The Dow Jones transportation average spurted 35.33 to 2,184.02, just 1.4 percent below a March 19 record.

USAir, the nation's fifth-largest airline, climbed 62.5 cents to $18.375; UAL Corp., parent of United Airlines, surged $4 to $215; AMR Corp., owner of American Airlines, added $3.125 to 491.50; and Delta Air Lines Inc. advanced $1.50 to $81.50.

Conrail Inc. surged $1.875 to $70.125; Burlington Northern Santa Fe rose $2 to $81.50; and Illinois Central Corp. climbed $1.25 to $28.25.

Caterpillar Inc. shares fell $1.125 to $70.50. The construction-equipment company's first-quarter earnings rose to $1.53 a share from $1.50 a year ago, beating estimates of $1.48. Per-share earnings rose only because Caterpillar has bought back so many of its own shares. Net income actually fell.

Pub Date: 4/17/96

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