Stocks retreat as profits disappoint Dow Jones falls slightly, one day after hitting an all-time high

NEW YORK — NEW YORK -- U.S. stocks fell from records yesterday as a two-day rally in bonds came to a halt and a batch of companies said profits in the just-ended quarter were disappointing.

The Dow Jones industrial average fell 1.12 to 5,932.85, a day after rising 29.07 to an all-time high. The 30-stock average, dropping for only its third time in 10 sessions, is still up 5 percent in a month.


Shares of Philip Morris Cos., Coca-Cola Co. and International Business Machines Corp. fell. Sears, Roebuck & Co., AlliedSignal Inc. and Boeing Co. gained.

A meager performance in bonds robbed fuel from the stock market's recent rally. The yield on the benchmark 30-year Treasury bond was down 0.01 at 6.83 percent. As recently as Sept. 20, the yield was 7.04 percent.


Among broad market indexes, the Standard & Poor's 500 index fell 1.23 to 692.78 after three records in a row. The Nasdaq composite index -- home to computer, semiconductor and software shares -- slid 3.02 to 1,233.09 after gaining Wednesday.

The Russell 2,000 index of small capitalization stocks slid 0.95 to 347.24; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq exchanges, dropped 9.01 to 6,811.49; the American Stock Exchange market value index gained 0.75 to 572.60.

Declining stocks topped advancers 1,266 to 1,133 on the New York Stock Exchange, where 386 million shares changed hands. The three-month daily average on the Big Board is 377.7 million shares.

The overall drop in stock prices didn't keep some stocks from continuing their record climb.

Intel Corp.'s stock finished up 50 cents at $99.50 after briefly crossing $100. The semiconductor maker, which last month said its third-quarter sales beat forecasts, has seen its stock climb 75 percent this year.

Wall Street carved big pieces from the value of Peak Technologies Group Inc., EIS International Inc., Integrated Process Equipment Corp. and Wall Data Corp. after all four companies said earnings in the latest quarter would come in less than expected.

Bar code data collector Peak Technologies' stock fell $9.875 to $11.875. Telecommunications company EIS dropped $5.125 to $7.875; semiconductor equipment maker Integrated Process slid $1.50 to $12.25; and software-maker Wall fell $9.25 to $14.

DSC Communications Corp. was the most active stock in U.S. trading, falling $2 to $16.75 in trading of 20 million shares. The telephone-equipment maker said third-quarter sales and earnings won't meet expectations because of useless inventory and an order slowdown. The stock is down 72 percent from its high a year ago.


The four are the latest in a string of companies, including Motorola Corp., AT&T; Corp., PepsiCo Inc. and Whirlpool Corp., that have said earnings will disappoint.

General Motors fell 37.5 cents to $49.50. GM of Canada Ltd.'s union workers began a strike late Wednesday after rejecting the automaker's wage and benefit proposals.

Ford Motor Co. dropped 50 cents to $31.25, and Chrysler lost 12.5 cents to $29.75.

Among the day's biggest gainers was Boeing. The aircraft maker's stock rose 62.5 cents to $97 after the company said it plans to accelerate production of its Boeing 737 to meet rising demand. The planes will be produced at a rate of 17 a month by the third quarter of 1997 from the current 8.5.

Chemical shares also advanced, paced by gains in Monsanto Co.'s shares. The stock rose on improving prospects for its biotechnology-related products and expectations that the company is close to selling more of its chemicals business.

The S&P; chemicals index jumped 2.40 to 375.81. Monsanto rose $1.25 to $39.875; Praxair Inc. jumped 62.5 cents to $44.25; Air Products and Chemicals Inc. rose 25 cents to $58.75; and Rohm & Haas Co. gained 37.5 cents to $66.625.


Pub Date: 10/04/96