Stocks are mixed Dow drops nearly 10; Gains in oil, utilities help offset concern over second-quarter profits


NEW YORK -- U.S. stocks were mixed yesterday, a day after posting steep declines, as gains in oil and electric utilities shares offset concern that disappointing second-quarter corporate profits will sap investor enthusiasm for equities.

The Dow Jones Industrial Average fell 9.98 to 5,510.56. The 30-stock average, which is down 4.6 percent from its record of 5,778 May 22, closed at its lowest since May 9. Caterpillar Inc., Procter & Gamble Co. and Du Pont Co. paced the retreat.

Shares of automakers were among the biggest decliners even after Chrysler Corp.'s second-quarter profits exceeded estimates. Investors are concerned that the light-truck boom that fueled Chrysler's results may be ending.

Chrysler's stock fell $1.25 to $56.25; General Motors Corp. slid $1 to $48.25; and Ford Motor Corp. dropped 37.5 cents to $30.75.

Among broad market indexes, the Standard & Poor's 500 index rose 0.52 to 646.19 after sliding 5.46 earlier. The Nasdaq composite index, filled with computer, software and semiconductor issues, dropped 2.87 to 1,103.49.

Other broad indexes were mixed. The Russell 2,000 index of small capitalization stocks fell 0.89 to 323.69; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, dropped 5.55 to 6,329.17; the American Stock Exchange market value index rose 0.68 to 549.77; and the S&P; 400 midcap index rose 0.41 to 224.61.

Yesterday's most active stocks in U.S. composite trading were Intel, Cisco Systems, Micron Technology Inc., Microsoft and United Healthcare.

The benchmark 30-year Treasury bond fell 2 basis points to 7.03 percent.

The Standard & Poor's index of six international oil companies rose 3.64 to 575.13. Exxon Corp. rose 31.25 cents to $89.69; Mobil Corp. gained 67.18 cents to $116.55; and Texaco Inc. rose $1 to $88.75.

And the Dow Jones utilities average climbed $2.80 to $217.86. DTE Energy Co. rose 37.5 cents to $30.25; NorAm Energy Corp. rose 62.5 cents to $11.375; American Electric Power Co. rose 50 cents to $42.375; and Consolidated Natural Gas Co. rose 37.5 to $53.75.

Advancing stocks outnumbered decliners by 1,192 to 1,156 on the New York Stock Exchange. More than 396 million shares traded.

For the week, the Dow industrials dropped 1.4 percent, the S&P; 500 Index 1.7 percent and the Nasdaq, 4.7 percent.

Semiconductor maker Xilinx Inc. was the latest technology company to say its earnings wouldn't meet expectations in the quarter ended June 30. The company's fiscal first-quarter profit of 41 cents a share, up from 7 cents a year earlier, was 2 cents short of estimates.

Xilinx shares fell $3.125 to $27.875. Market leader Intel rose $1.75 $71.25; Microsoft dropped 2.125 to 112.375; and rival Computer Associates International Inc. fell 75 cents to $64.50.

Investors said the weakness in that group of stocks, which had fueled a 19-month rally in stock prices, was the latest bad news for the stock market.

Pub Date: 7/13/96

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