NEW YORK -- U.S. stocks rose yesterday as prospects for higher dividends and better-than-expected corporate earnings outweighed concern that surprisingly high consumer confidence could boost interest rates.
Philip Morris Cos. rose $1.50 to $91.875 to lead the Dow Jones industrial average 17.38 higher to 5,711.27, its first gain in three days. The cigarette maker rose a second day after an Indiana jury sided with tobacco firms against a former smoker Friday in a negligence suit.
The broader Standard & Poor's 500 index rose 2.52 to 666.40, led by trucking, oil and financial concerns.
The Dow Jones transportation index, considered a harbinger of market strength, rose 13.27, or 0.65 percent, to 2,071.03.
The Nasdaq composite index jumped 9.82 to 1,149.04; the Russell 2,000 index of smaller shares climbed 2.23 to 333.75; the Wilshire 5000 index -- an array of stocks listed on the NYSE, American Stock Exchange and Nasdaq Stock Market -- added 30.08 to 6,535.37; the S&P; mid-cap index rose 1.18 to 233.17, and the American Stock Exchange market value index edged up 1.42 to 562.05.
Boeing Co. rose 87.5 cents to $91.25 on its news of hiring 5,000 workers for production increases.
About 306.4 million shares traded on the New York Stock Exchange. Some 1,388 issues advanced and 910 declined.
The yield on the benchmark 30-year Treasury bond fell 3 basis points to 6.97 percent.
Interest-sensitive financial shares recovered some of Monday's declines. Federal National Mortgage Association rose 50 cents to $32.75, and Wells Fargo & Co. rose 50 cents to $255.125.
Among other gainers yesterday, ADC Telecommunications Inc. added $5 to $53.25 after the company's 36 cents in profit for the fiscal third quarter beat the average estimate of analysts by 2 cents a share, according to Zacks Investment Research.
HBO & Co. rose as much as $2.75 to $57.50 after the health care information manager was raised to "outperform" from "market perform" at Donaldson, Lufkin & Jenrette.
Consolidated Freightways Inc. rose $1.75 after the trucker said late Monday that it would spin off its largest subsidiary, CF MotorFreight, to avoid competition between its regional and long-haul units.
PepsiCo Inc. slid 62 1/2 cents to $31 after Merrill Lynch & Co. cut the company's earnings-per-share estimate for 1996 by 5 cents to $1.40 and its long-term growth outlook by 1 percent to 14 percent annually.
3Com Corp. rose $2.25 to $46 after the company said it consolidate its sales and marketing of certain products into two divisions, one aimed at small networks and others at large far- flung corporations.
C-Cube Microsystems Inc. rose for a fifth straight day after Zenith Electronics Corp. won a $1 billion order for a Baby-Bell venture that will use C-Cube chips. C-Cube increased $4.25 to $39.25, and Zenith rose 37.5 cents to $14.875.
Pub Date: 8/28/96