NEW YORK -- U.S. stocks set records for a third day yesterday as falling interest rates bolstered confidence that strong profits will support yet higher share prices in 1997. Citicorp and other financial stocks paced the advance.
The Dow Jones industrial average recorded its sixth record high in seven sessions, rising 53.11 to 6,762.29. International Business Machines Corp. rose $3.140625 to $167.15625.
Investor optimism got a further boost after Student Loan Marketing Association and Advanced Micro Devices Inc. joined the list of companies reporting better-than-expected results for the final months of 1996.
Among broad stock market indexes, the Standard & Poor's 500 index gained 9.35 to a record 768.86. The Nasdaq composite index rose 15.45 to an all-time high of 1,346.36.
After the close of trading, the footing was provided for another jump in share prices today when Intel Corp. reported earnings that crushed the estimates. The No. 1 chip maker said net income rose 117 percent to $2.13 a share, well above the $1.83 expected by Wall Street. Intel's shares rose 25 cents to $147.125.
The Russell 2,000 index of small capitalization stocks rose 1.67 to 367.52, another peak; the Wilshire 5,000 index gained 78.02 to a record 7,438.12; the American Stock Exchange composite index climbed 2.22 to a 588.35; and the S&P; mid-cap index added 2.49 to 262.61,
Maryland stocks index rose, led by T. Rowe Price Associates, which increased $2 to $45, and Martek Biosciences Corp., which gained $1.50 to $23.50.
NationsBank Corp. jumped $3.75 to $106.625 and Citicorp leaped $3.75 to $104.25. First Union Corp. gained $2.625 to $80.
Among telephone shares, Bell Atlantic Corp. gained $2 to $66.50; Ameritech Corp. gained $1 to $59.125; and Pacific Telesis Group rose 62 1/2 cents to $36.50.
The yield on the benchmark 30-year Treasury bond sank 8 basis points to 6.77 percent.
Semiconductor shares gained after Intel Corp. rival Advanced Micro Devices Inc. reported a smaller-than-expected loss, suggesting that the latest computer upgrade cycle will benefit a larger circle of chip makers than some investors had expected. AMD jumped $3.75 to $32.75, its highest point since September 1995.
After the close Monday, AMD reported a loss of 15 cents a share, 4 cents narrower than expected. Analysts boosted their investment opinions, and Robertson, Stephens & Co. raised its earnings outlook for 1997 by 33 percent to $1 a share.
No. 1 software publisher Microsoft Corp., up $1.625 to $85.375, and network maker Cisco Systems Inc., ahead $3 to $72.125, paced an industry-wide advance.
Chips & Technologies Inc. missed out on the rally, even as it reported profit from operations rose 91 percent to 42 cents a share, 1 cent above analysts' average forecast.
Tim Christofferson, the company's chief financial officer, said margins and shipments in the current quarter would fall from last quarter's results. The stock tumbled $5.125 to $16.50.
A round of better-than-expected earnings reports helped two government-sponsored finance companies rally. Student Loan Marketing Association, which borrows money on Wall Street and invests it in student loans, surged $5.75 to $100.25.
Federal National Mortgage Association, which purchases mortgages to either hold or repackage as mortgage-backed securities, climbed $1 to $39.625.
Health-care management stocks slumped for a second day. The federal government released proposals in the past month that will reduce its spending for the elderly and handicapped by cutting Medicare payments to health maintenance organizations.
PacifiCare Health Systems Inc. slid 31 1/4 cents to $74. Oxford Health Plans Inc. dropped $2.75 to $52.50.
United Healthcare Corp. retreated 75 cents to $43.625.
Pub Date: 1/15/97