NEW YORK -- U.S. stocks closed mixed after touching records yesterday, as investors began questioning whether share prices already reflect a rosy outlook for profits.
The Dow Jones industrial average, which closed Monday above 6,000 for the first time, fell 5.22 to 6,004.78. The 30-stock average began the day with a 34.29-point rally, only to drop 39.13 points in early afternoon trading.
The pullback from records overshadowed surprisingly strong third-quarter earnings from Intel Corp., General Motors Corp. and Citicorp.
Among broad market indexes, the Standard & Poor's 500 index fell 0.97 to 702.57, rebounding from a loss of 4.47 points after an all-time high of 703.54 Monday. The Nasdaq composite index managed to eke out another record, climbing 1.74 to 1,258.10.
The Russell 2,000 index of small capitalization stocks rose 0.01 to 349.01; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, slipped 5.15 to 6,891.42; the American Stock Exchange market value index fell 3.68 to 575.65; and the S&P; 400 midcap index dropped 0.42 to 244.91.
About 1,316 stocks fell and 1,094 issues rose on the New York Stock Exchange, where about 459 million shares traded. The three-month daily average on the Big Board is 382 million shares.
The initial rally and subsequent pullback in the stock market mirrored a similar pattern in bonds. The yield on the benchmark 30-year Treasury bond ended at 6.84 percent, unchanged from Friday, after falling as low as 6.81 percent.
Regional telephone stocks fell after Ameritech Corp.'s third- quarter profit of 94 cents a share only matched estimates. Ameritech fell 87.5 cents to $54.375; Bell Atlantic Corp. slid 87.5 cents to $58.75; and Nynex Corp. dropped 50 cents to $42.875.
Financial shares were led lower by Federal Home Loan Mortgage Corp., which fell $3.75 to $96.75. The company's profit of $1.65 a share for the third quarter was short of the $1.67 analysts expected.
Among the gainers were semiconductor stocks. Intel's third-quarter earnings beat even the most optimistic forecasts, as the nation's No. 1 chip maker benefited from strong demand (( for personal computers going into the holiday season.
Intel's stock surged $6.625 to an all-time high of $114.25 before retreating to $111.125, up $3.50. Texas Instruments Inc. reported better-than-expected earnings as well. Its shares fell 50 cents to $55.125.
Some makers of personal computers gained on Intel's report. Compaq Corp. rose $2 to $74.75 and Dell Computer Corp. gained $3.50 to $88.375. International Business Machines Corp. fell 50 cents to $129.50.
Coca-Cola Co.'s stock slid 62.5 cents to $48.75 even after its third-quarter profit of 39 cents a share beat the estimates by a penny. The beverage company's revenue fell 4.9 percent, leading some investors to say the company is doing a better job controlling costs than expanding its franchise.
Citicorp, the nation's second-largest bank, jumped $1.625 to $95 after its third-quarter profit of $1.93 a share beat estimates by 8 cents. NationsBank Corp. also beat expectations, but its stock fell 37.5 cents to $88.875.
Chase Manhattan Corp., which met analysts' profit estimates, closed unchanged at $82.50. The bank said it would buy back up to $2.5 billion of stock.
U.S. Robotics Inc. rallied $8.875 to $78. It will introduce a modem today that can transmit data faster than existing modems.
Pub Date: 10/16/96