NEW YORK — NEW YORK -- U.S. stocks climbed yesterday as the economy's strength boosted the outlook for earnings later this year.
Prospects for increased consumer spending and business investment brightened Friday, when a government jobs report showed the economy spawned 250,000 new jobs last month.
The Dow Jones industrial average advanced 73.98, or 1.3 percent, to 5,733.84, putting it within 45 points of its record of 5,778. Pacing the advance were economically sensitive shares such as aerospace and auto parts company United Technologies Inc. and International Business Machines Corp.
The 30-stock Dow average has risen 2.3 percent since Friday's jobs report and is on track to show an annual gain for the sixth straight year, a unprecedented feat.
In the broader market yesterday, the Standard & Poor's 500 index gained 8.08, or 1.2 percent, to 663.76. Interest-sensitive banks paced the S&P; 500's rise.
The Nasdaq composite index rose less in percentage terms than the other indexes, up 9.32, or 0.8 percent, to 1,148.71.
The Russell 2000 index of smaller shares rose 1.53, or 0.5 percent, to 335.63; the Wilshire 5000 -- a gauge of shares listed on the NYSE, American Stock Exchange and Nasdaq Stock Market -- gained 65.76, or 0.1 percent, to 6,515.51; the American Stock Exchange market value index advanced 1.94 to 561.96; and the S&P; midcap index added .75 to 232.60.
Advancing shares outnumbered those that declined by 1,535 to 862.
Trading of about 311 million shares was slower than the three-month average volume of about 376 million.
Lowered earnings estimates cratered Broderbund Software Inc., DII Group Inc. and Ben & Jerry's Homemade Inc.
Broderbund said it expects fourth-quarter profits to fall below analysts' expectations as sales decline between 10 percent and 15 percent from the level of the same quarter a year earlier. Its shares retreated $3.875 to $23.75, nearly a two-year low.
DII Group, which provides manufacturing services to electronic companies, fell $4 to $19. The company said slowing orders will trim profits for the year by 35 cents a share.
DII was expected to earn $2.28 a share in 1996, according to IBES International Inc.
Ben & Jerry's, the premium ice cream maker, said slowing sales and higher dairy costs would limit profitability to below 35 cents a share in the third quarter. Analysts expected 38 cents a share, ac- according to IBES. The stock fell $1 to $13.375.
Daka International Inc. shares tumbled $5.375 to $10 after the proprietor of Fuddruckers hamburger chain reported weaker-than-expected fourth-quarter earnings, and said sales and profits in 1997 would fall well below Wall Street estimates.
The company also said it is renegotiating and may cancel a joint venture with Kmart Corp. to run 1,850 restaurants in the discount retailer's stores. Kmart fell 12.5 cents to $10.25.
Big B Inc., a Southeastern drugstore chain, rose $3.25 to $15.875 -- and was the most actively traded stock in U.S. markets -- after Revco D.S. Inc., a larger retail pharmacy group, said it began a tender offer of $15 a share. Revco, up 12.5 cents at $25.75, was rebuffed by Big B management in earlier buyout negotiations. Shares of Big B rose to a price more than Revco's offer as investors expected that Revco would raise its price.
DuPont Co. gained $1.125 to $84.75, an all-time high. The recent rise in oil prices is seen helping its Conoco refining and exploration unit, which contributed 42 percent of revenue last year.
IBM rose $2.125 to $117.625, buoyed by enthusiasm for the company's new 18-company Internet banking group.
Barringer Technologies Inc. rose $2.0625 to $11.375 after the Clinton administration said it will ask Congress for $1 billion to beef up the nation's defenses against terrorism. Barrington develops chemical and explosive detection devices.
Among bank shares, Bank of New York Co. rose $1.125 to $29.875; Comerica Inc. added $2.25 to $51.50; and US Bancorp jumped $1.0625 to a record $39.9375.
The benchmark 30-year Treasury bond yield fell to 7.07 percent yesterday from 7.10 percent Friday.
Pub Date: 9/10/96