Indexes set records as stocks rise for 4th day Computer firms lead rally; Nasdaq composite soars to its 23rd high of the year

NEW YORK — NEW YORK -- U.S. stocks rose yesterday for a fourth day in a rally paced by computer companies. Several indexes, including the Standard & Poor's 500 and Nasdaq composite indexes, set records.

Shares of Microsoft Inc. and Intel Corp. led the advance amid optimism that a new software program and an improved computer chip will spark strong sales for the industry leaders in the coming months.


The Dow Jones industrial average rose 64.46 to 5,582.60, its biggest gain in eight weeks, led by Chevron Corp. and Texaco Inc. The benchmark 30-stock average is up almost 3 percent in four trading sessions. The Nasdaq composite index soared 19.11 to 1,221.87, its 23rd record of the year.

The Standard & Poor's 500 index jumped 9.42 to 661.51, surpassing its high of 661.45 Feb. 12. The S&P; 500 was led higher by Microsoft, up $3.75 to $118.625, the highest price ever commanded by the Redmond, Wash.-based software publisher, and Hewlett-Packard Co. set a record, up $3.875 to $112.375.


The Russell 2,000 index of small and midsize companies, the S&P; Midcap index, the Wilshire 5,000 index and the Dow Jones transportation index all rose to highs.

The Russell 2,000 rose 3.35 to 354.50, a record. The S&P; Midcap rose 2.01 to 238.69, surpassing the record it set May 1; and the Wilshire 5000, a gauge of stocks listed on the New York, American and Nasdaq stock exchanges, rose 87.70 to 6,594.28. The American Stock Exchange market value index rose 5.92 to 597.25.

Advancing stocks trounced decliners 1,636 to 776 on the New York Stock Exchange. About 394 million shares changed hands, below the average daily volume of 424 million shares.

Motorola Inc. rose $2.50 to $63 and Intel rose $2.625 to $71.75 as investors signaled confidence that profits at computer-related companies will be strong in the coming months. Intel plans to introduce a new version of its Pentium chip this summer. Motorola unveiled a line of low-priced microprocessors designed compete with Intel.

Intel and Motorola helped send the Philadelphia semiconductor index up 9.30 to 213.89, its biggest one-day rally since April. Also helping were LSI Logic Corp., up $2.375 to $36.75; and Analog Devices Inc., up $2.125 to $29.625; and International Rectifier Corp., up $1.50 to $24.50.

Shares of Texas Instruments Inc. jumped $1.625 to $54.50 after the company filed to sell $500 million of stock and debt. Such an offering indicates that the company has faith in its growth prospects.

Saturday's crash of a ValuJet Inc. DC-9 in the Florida Everglades, killing 109 on board, sent the stock of the Atlanta-based no-frills airline down $4.1875 to $13.6875 in trading of 22.1 million shares, making it the most active stock on U.S. exchanges.

Airlines that could seize the market share that ValuJet may lose as a result of the misfortune saw their shares advance. Delta Air Lines Inc. rose $3.375 to $83.625; UAL Corp. surged $6 to $214; and Southwest Airlines jumped $1.625 to $29.50.


Shares of AMR Corp., American Airlines' parent, rose $2.50 to $92 after a British newspaper reported that the airline is in talks with British Airways about the possibility of a global alliance.

Among the Dow industrials, shares of Chevron gained $2 to $59.125 and shares of Texaco rose $1.375 to $81.875 on a perception that chances are receding that the United Nations will soon let Iraq export oil. Shares of Coca-Cola Co. rose $1.0625 to $43 after splitting its stock 2 for 1.

Shares of banks, insurers and consumer lending companies rallied as bond yields continued a weeklong drop.

The New York Stock Exchange financials index surged 2.74 to 291.34. The index has risen 3.47 percent in a week. The Keefe, Bruyette & Woods bank index rose 4.42 to 431.98.

The yield on the 30-year U.S. Treasury bond fell 3 basis points to 6.89 percent, the lowest since April 30.

Pub Date: 5/14/96