NEW YORK -- U.S. stocks followed Friday's plunge with another round of losses yesterday as concern mounted that rising interest rates will curb spending by consumers and businesses. Shares of banks and retailers paced the retreat.
The Dow Jones industrial average fell 37.31 to 5,550.83 after tumbling 114.88 points, or 2 percent, Friday. The 30-stock average is down 179 points in four sessions.
The Nasdaq composite index, filled with computer and semiconductor issues, fell 9.52 to 1,148.83. The Standard & Poor's 500 index dropped 4.90 to 652.54.
Among other broad market indexes, the Russell 2,000 index of small capitalization stocks declined 3.10 to 336.68; the Wilshire 5,000 index shed 58.81 to 6,439.38; the American Stock Exchange market value index fell 5.42 to 568.91; and the S&P; 400 midcap index slipped 2.18 to 229.66.
Yesterday's most active stocks in U.S. composite trading were Loral Space & Communications, Intel Corp., Motorola Inc., Sun Microsystems Inc. and Cisco Systems.
Gains in shares of computer-related companies helped cushion the blow. International Business Machines Corp. rose 50 cents to $98.375; Motorola climbed $1.875 to $67.75; Cisco Systems Inc. rose 87.5 cents to $56.875; and Intel Corp. climbed 75 cents to $73.
Some 1,716 stocks fell and 742 rose on the New York Stock Exchange, the third straight day that decliners beat advancers. About 366 million shares traded.
Shares of securities firms, banks and other lenders fell, sending the New York Stock Exchange financials index down 4.42 to 286.47. Wells Fargo & Co. fell $4.50 to $230.75; Travelers Group Inc. fell $1 to $43.50; Allstate Corp. gave up 62.5 cents to $43.875; and Federal National Mortgage Association slid 62.5 cents to $30.375.
American International Group Inc. shed $2 to $92.50 and Fleet Financial Group Inc. dropped 62.5 cents to $42.25.
The S&P; general retailer's index of four stocks slipped 0.93 to 52.66. Wal-Mart Stores Inc. fell 50 cents to $24; Sears, Roebuck & Co. dropped $1.125 to $45.875; Dayton Hudson Corp. slipped $2 to $98.875; and Kmart Corp. fell 12.5 cents to $11.75.
The yield on the 30-year Treasury bond, which reflects expectations for inflation closed at 7.18 percent, unchanged from Friday's close.
Shares of America Online Inc. fell $3.125 to $38. The company agreed to pay its subscribers as much as $22 million in free online time, plus cash to settle 11 private class-action lawsuits about disclosure and billing practices.
International Automated Systems Inc. tumbled $9 to $16. The maker of telecommunications technology was named in a shareholder lawsuit that alleges the company and its president violated federal securities laws.
Secure Computing Corp. shares rose $1.875 to $22.875. The National Security Agency awarded the software company a contract extension valued at about $15 million to $19 million.
Union Pacific Corp. shares continued to rise, closing up $1.125 to $71.625. The railroad received government approval to acquire Southern Pacific Corp. for $5.4 billion.
Shares of Agouron Pharmaceuticals Inc. rose $1.75 to $44.75, before retreating to $42.75, down 25 cents.
A study released this week at an AIDS conference in Vancouver, British Columbia, said the company's Viracept drug, administered in combination with two other drugs, reduced the level of HIV in patients' blood below detectable levels.
Shares of Incyte Pharmaceuticals rose $3.125 to $40.625. The company said German drug company Schering AG will subscribe to Incyte's database of DNA sequences and full-length genes.
Speedfam International Inc. rose $1.50 to $16.50. The semiconductor equipment company said its fiscal fourth-quarter net income rose to 46 cents a share from 19 cents a year ago.
In Focus Systems Inc. tumbled $6 to $17. The maker of computer liquid crystal displays said it had a second-quarter loss of 10 cents a share, compared with net income of 47 cents in the year-ago period.
Pub Date: 7/09/96