NEW YORK -- U.S. stocks set records yesterday for a second straight day, boosted by an optimistic forecast for fourth-quarter sales from Intel Corp. and a better-than-expected sale of 30-year bonds that sent yields to eight-month lows.
The Dow Jones industrial average passed 6,200 for the first time, rising 28.33 to 6,206.04 after closing above 6,100 for the first time Wednesday. It was the Dow average's 33rd record in 1996.
The Standard & Poor's 500 index rose 3.06 to 727.65, its 31st record of the year. The Nasdaq composite index climbed 8.65 to 1,254.14, about 4 points shy of its record.
Stocks were buoyed by a rebound in bonds, which erased early losses after the government sold $10 billion in securities at a maximum yield of 6.62 percent, an indication of strong demand for U.S. government debt. Yields slid 7 basis points to 6.54 percent, after rising 7 basis points earlier.
Intel, the world's largest maker of chips for personal computers, said it expects fourth-quarter sales and gross margin to beat third-quarter levels on increased new orders and strong sales of its Pentium line of computer chips. The company's shares jumped $3.25 to $122.125, spurring a host of computer-related shares higher.
Among PC makers, Gateway 2000 Inc. jumped $4 to $53; Hewlett-Packard Co. rose $2.50 to $48; and Compaq Computer Corp. rose 62.5 cents to $73.875.
The Philadelphia semiconductor index rose 4.68, or 2.31 percent, to 207.34. It has climbed 11 percent in five days.
Among broad U.S. stock indexes, the Russell 2,000 index of small capitalization stocks rose 1.85 to 344.29; the Wilshire 5,000 index rose 31.93 to a record 7,045.82; the American Stock Exchange market value index gained 1.38 to 579.25; and the S&P; 400 mid-cap index rose 0.76 to a record 248.30.
Retail shares lost ground amid a spate of mixed forecasts. Best Buy Co., an electronics retailer, and Lowe's Cos., which sells hardware, said earnings would fall short of expectations. Best Buy fell $3.75 to $12.50, and Lowe's slumped $3.875 to $39.50.
Fila Holding SpA's American depositary shares soared $7.125 to $83 after the shoemaker earned $1.61 an ADS in the third quarter, up from 91 cents a year ago. Analysts had expected $1.45.
United Healthcare Corp. shares jumped $4.25 to $44.375 after saying third-quarter earnings matched expectations, as the company focused on keeping medical and administrative costs in line. Revenue more than doubled to $2.58 billion from $1.21 billion in the year-earlier quarter.
Cablevision Systems Corp. fell $6.625 to $25.875, its lowest since 1992 after the cable television system operator late yesterday said increases in operating expenses will hurt cash flow in the fourth quarter. It also said its third-quarter loss widened to $4.31 a share from $1.85 in the year-ago quarter.
Chips & Technologies Inc. stock rose $3.875 to $23.625 on signs of strong sales for laptop computer chips and an optimistic report from investment bank Hambrecht & Quist.
CompUSA Inc. rose $4 to $50 after the computer retailer said it plans a 2-for-1 stock split, its second this year.
Cytyc Corp. rose a second day, up $3.125 to $17.25 after the maker of diagnostic medical instruments said the U.S. Food and Drug Administration will let it claim its ThinPrep Pap test is "significantly more effective" than conventional tests.
Gap Inc. rose $1.25 to $31.375 after the retailer said October same-store sales rose 4 percent from a year earlier.
Nastech Pharmaceutical Company Inc. rose $5.75 to $20.25 after the company said it won approval from the Food and Drug Administration to sell its Nascobal medication for vitamin B-12 deficiency.
Read-Rite Corp. rose $2.8125 to $22.6875 after the maker of computer disk-drive components said at a technology conference in New York that there's healthy demand for its products.
Pub Date: 11/08/96