NEW YORK — NEW YORK -- U.S. stocks were mixed yesterday, as TTC semiconductor shares rallied after a barometer of chip demand rose for the first time in seven months. Hewlett-Packard Co. fell on concern that earnings won't meet earlier expectations. Shares of drug and telephone companies also dropped.
The Dow Jones industrial average fell 0.37 to 5,668.29 after having risen more than 36 points earlier in the day. The slide reflected declines in bonds, stemming from concern that inflation will soon begin to accelerate.
Among broader measures, the Standard & Poor's 500 index fell 1.93 to 669.04; the Russell 2,000 index of smaller capitalization companies rose 0.24 to 359.65; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq exchanges, fell 5.76 to 6,671.31; the American Stock Exchange market value index fell 0.02 to 597.55; and the S&P; midcap index rose 0.89 to 241.29.
The Nasdaq composite index gained 4.71 to 1,235.47.
Declining stocks outnumbered advancing issues by 1,202 to 1,116 on the New York Stock Exchange.
Intel Corp., Novellus Systems Inc. and LSI Logic Inc. were among the semiconductor shares that gained after the industry's ratio of new orders to shipments increased for the first time since October.
Intel rose $1.50 to $76.75; Novellus jumped $1.75 to $44.25; and LSI Logic gained $1 to $28.50.
Microsoft Corp. shares rose to another record. The software maker's stock gained $2.875 to $125 before today's Intranet Day conference, at which it will provide details of products for corporate networks using the Internet.
Hewlett-Packard fell $3.50 to $102.875. Shao Wang, an analyst at Smith Barney, cut his earnings estimates for the computer company's fiscal third and fourth quarters. He said the cuts reflected concern about its transition to new products and demand in the high-end computer market.
Drug companies declined. Pfizer Inc. dropped 75 cents to $71.625; Pharmacia & Upjohn Inc. retreated $1.125 to $41.25; and Eli Lilly & Co. dropped $1.75 to $64.25.
Telephone shares fell as bond yields rose. Ameritech Corp. fell 75 cents to $56 and Bell Atlantic Corp. slid 87.5 cents to $61.625.
The yield on the benchmark 30-year Treasury bond rose 7 basis points to 7.19 percent even as yesterday's consumer price report showed that May prices rose 0.3 percent, the smallest increase in three months.
Chemical companies, whose profits benefit more than most from faster economic growth, posted gains. Dow Chemical Co. added $1.375 to $82.375 and DuPont Co. gained 75 cents to $80.
Monsanto Co. surged $1.75 to $32. The company's chairman told analysts at a meeting that new drugs, including one to treat arthritis, and pesticides could generate more than $4.5 billion in sales, said Donald Carson, an analyst at J. P. Morgan & Co.
Construction stocks also gained. Fluor Corp., a building and design firm, rose $1 to $66.50. Rival Foster Wheeler Corp. added 50 cents to $46.875.
DSC Communications Corp. rose 25 cents to $29 after a Texas judge awarded the telecommunications equipment maker $136.7 million in a trade secrets lawsuit against Next Level Communications Corp. and two of its co-founders.
Circuit City Stores Inc. rose $2 to $38.25 a day after the retailer detailed its plan to open eight to 10 CarMax used-car dealerships in 1997 and operate more than 80 by 2001. Everen Securities yesterday raised its rating on the stock to short-term "outperform" from "market perform."
Kmart Corp. tacked on 81.25 cents to $13.50 after Merrill Lynch ** & Co. reinstated coverage of the retailer's stock with a "buy" rating.
Biomerica Inc. zoomed $7.375 to $39.125. The maker of diagnostic test kits said it will introduce a five-minute test for detecting prostate cancer. The company said it will introduce its product outside the United States in a month.
Pub Date: 6/13/96