Stocks advance to another new high IBM surges $8.125, helping Dow industrials close out week at 6,348

NEW YORK — NEW YORK -- U.S. stocks rose yesterday, and the Dow Jones industrial average reached its eighth straight record, as economic reports fed expectations for growth with little inflation.

The Dow industrials closed up 35.03 at 6,348.03, after soaring 64.85, losing the entire gain at midday, then rebounding in late trading. It was the 39th record of the year for the 30-stock average.


International Business Machines Corp. led the advance, surging $8.125 to a nine-year high of $145 after Merrill Lynch & Co. raised its price target to $195 from $150.

Declines in Intel Corp. and other semiconductor shares tempered the advance.


In the broader market, the Standard & Poor's 500 index rose 1.74 to 737.62 after touching an all-time high of 741.92. The Nasdaq composite index fell 8.56 to 1,261.80, driven lower by Intel.

The Russell 2,000 index of small capitalization stocks fell 0.74 to 346.52; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, rose 6.98 to 7,128.18; the American Stock Exchange market value index rose 0.05 to 585.41; and the S&P; mid-cap index lost 0.11 to 252.53.

Maryland stocks fell, led by Alex Brown Inc., which dropped $1.75 to $61, and PHH Corp., which dropped $1.50 to $45.50.

For the week, the Dow gained 128.21 points, or 2.06 percent, the S&P; 500 rose 0.93 percent and the Nasdaq gained 0.34 percent.

Trading was unusually active because of the expiration of options and futures, with 529 million shares changing hands. The daily average for the past three months was 396 million.

Intel fell $4 to $115.875 and Microsoft dropped 62.5 cents to $149, but Hewlett-Packard Co. rose $1.25 to $50.875 and Sun Microsystems Inc. rose 62.5 cents to $58.75.

Bank shares were among the day's biggest gainers. NationsBank Corp. rose $1 to $96.125; Fleet Financial Group gained $1.125 to $52.625; and Corestates Financial Corp. rose $1.125 to $51.75.

The benchmark 30-year Treasury bond's yield rose 4 basis points to 6.46.


Southwest Airlines Co. shares fell 50 cents to $23.875 after Chief Financial Officer Gary Kelly said fourth-quarter profit is likely to fall from a year ago because of higher jet fuel prices.

Checkfree Corp. fell $2.625 to $17 after Lehman Brothers Inc. analyst Patrick Burton lowered his fiscal 1997 revenue estimate to $185 million from $200 million, because its quarterly growth rate is expected to be slower.

Pub Date: 11/16/96