NEW YORK — NEW YORK -- U.S. stocks clung yesterday to the last two trading sessions' record gains as higher borrowing costs couldn't shake investors' ardor for equities.
Rising shares of Philip Morris Cos. offset a decline in United Technologies Corp., which reached an all-time high Monday. The Dow Jones industrial average finished just off Monday's record close, trading 0.37 points lower at 5,888.83 after having been down almost 40 points earlier. The Standard & Poor's 500 index fell 1.04 to 682.94.
Among the major indexes, only the Nasdaq composite index gained, helped by Intel Corp.'s $5.625 surge to $94.25, its seventh straight record.
The chip maker said third-quarter sales are likely to increase 5 percent from the previous quarter's $4.62 billion rather than hold steady as analysts expected, because personal computer makers are ordering more chips for immediate delivery. Intel also said it's making more money on its products.
The Nasdaq moved above 1,200 for the first time since June, rising 9.35 to 1,203.31. The index, dominated by computer-related companies and smaller corporations, has yet to eclipse its all-time high of 1,249.14, reached June 5.
The Russell 2,000 index of smaller shares was little changed, down 0.04 to 342.25. The Wilshire 5,000 index -- a gauge of stocks listed on the NYSE, Nasdaq stock market and American Stock Exchange -- lost 0.76 to 6,701.87; the American Stock Exchange market value index dropped 3.78 to 567.16; and the S&P; mid-cap index fell .37 to 239.13.
Declining stocks outnumbered advancers by a margin of 1,462 to 999 on the New York Stock Exchange as 442 million shares changed hands on the NYSE.
Other computer-industry shares rode Intel's coattails. Microsoft Corp. rose $2.375 to $133.875; Hewlett-Packard Co. added 25 cents to $48.50; Motorola Inc. gained $1 to $51.50; and Compaq Computer Corp. rose $3.375 to $64.75.
Semiconductor stocks zipped higher. Atmel Corp. surged ahead to $28.25, Applied Materials Inc. gained $1.625 to $27.375; and Altera Corp. jumped $4 to $52.125.
Shares of Micron Technology Inc., which specializes in memory chips, didn't receive a similar bounce. Its shares rose 25 percent in the seven trading sessions through Monday. Yesterday, it gained 25 cents to $26.75.
The yield on the benchmark 30-year Treasury bond, which moves opposite its price, rose 7 basis points to 7.02 percent.
Banc One Corp. slid 75 cents to $39.75; NationsBank Corp. dropped 25 cents to $85.875; and Norwest Corp. lost 62.5 cents to $39.625.
Fleetwood Enterprises Inc., a builder of mobile homes, sank $1 to $28.375. Higher mortgage costs, which are pegged to government interest rates, were expected to damp home sales. Pulte Corp., which owns homebuilding and financing units, dropped 75 cents to $24.875.
Oil shares sank after oil prices made their biggest plunge in 4 1/2 years Monday and recovered little of that decline yesterday. Royal Dutch Petroleum Co. dropped $2.125 to $155.375 and Texaco Inc. skidded 37.5 cents to $93.75.
Pub Date: 9/18/96