Stocks mixed Dow rises, Nasdaq falls; Banking and oil issues advance to records; computers are routed; Wall Street

THE BALTIMORE SUN

NEW YORK -- U.S. stocks were mixed yesterday as oil and bank shares climbed to records and computer-related issues suffered their biggest rout in more than a month.

Mobil Corp., Chevron Corp. and other energy issues extended a seven-week rally on optimism that demand for oil and gas will boom as European economies recover and Asian markets grow.

Microsoft Corp. and Intel Corp. slumped, as more companies in the industry warned that profits will disappoint.

The Dow Jones industrial average rose 22.75 to 7,312.15 in a session that included a 35-point drop and a 52-point gain. Among the Dow's advancers, J. P. Morgan & Co. rose $2.125 to $108.875 and Chevron jumped $1.25 to $71.375.

International Business Machines Corp. fell $2.75 to $84.375 and Hewlett-Packard Co. slumped $1.125 to $51.875.

Computer, semiconductor and software issues slid after disk-drive maker Seagate Technology Inc. and network equipment maker Cabletron Systems Inc. warned of disappointing sales. Cabletron fell $15.50 to $30.25, giving back all the gains its has made since April 25, and Seagate dropped $3.625 to $39.75. Cabletron was the most active stock, as 25.8 million shares traded.

The Nasdaq composite index, heavily weighted with computer issues, fell 19.88 to 1,384.91, its worst drop since April 25.

The Standard & Poor's 500 index fell 0.88 to 845.48, as declining computer shares overshadowed the advance in oil issues. The S&P; international oil stock index, a sub index with six stocks, jumped 5.41 to 730.14, an all-time high.

For the first time in 10 sessions, the Russell 2,000 index failed to set a new high. The index of small capitalization stocks worth $3 billion or less dropped 0.24 to 383.28.

Among other major indexes, the Wilshire 5,000 index lost 10.88 to 8,033.58; the American Stock Exchange composite index added 1.85 to a record 609.02; and the S&P; mid-cap index dropped .84 to 280.14.

Advancing stocks outnumbered decliners by 1,495 to 1,031 on the New York Stock Exchange, where 531.1 million shares changed hands.

Mobil rose $1.25 to a record $141; Amoco Corp. jumped $1.625 to $91; Royal Dutch Petroleum Co. climbed 75 cents to $195.75; and Texaco Inc. added $1.125 to $110.50.

The yield on the benchmark 30-year Treasury bond slid to 6.86 percent from 6.90 percent, driving financial stocks up. Republic New York Corp. rose $2.25 to a record $101.375, Citicorp climbed $2.375 to $115.50; Chase Manhattan Corp. added $2.50 to $97; BankAmerica Corp. jumped $3.125 to $118.50; and Bankers Trust New York Corp. gained $2 to $86.625.

NationsBank Corp. rose $1.25 to $59.875 and First Union Corp. gained $2.125 to $87.125 after Morgan Stanley Dean Witter Discover raised its investment opinion on both stocks.

Ford Motor Co. rose 87.5 cents to $38. The nation's No. 2 automaker is expected to earn its biggest quarterly profit ever in the second quarter, the Wall Street Journal reported.

The warnings from Seagate and Cabletron follow a similar comments from industry bellwether Intel Corp. on Friday. Intel fell $4.75 to $145 yesterday and is down 14 percent in the last week.

The Morgan Stanley high tech index fell 18.99 to 414.13, its biggest slide since April 25. Bay Networks Inc. fell $2 to $22.375; U.S. Robotics Corp. slipped $5.1875 to $80; America Online Inc. dropped $2.625 to $56; and Cisco Systems Inc. dropped $3.0625 to $64.75. Microsoft dropped $3.625 to $120.75.

Blyth Industries Inc. rallied $2.875 to $48.625 after the candle maker said net income for its first quarter ended April 30 rose to 34 cents a share from 23 cents in the year-ago period.

DSP Communications Inc.'s shares rose $1 to $11.9375 after the wireless communications equipment company's CTP Systems unit received a multimillion-dollar contract for wireless communications components from Harris Corp.

Pub Date: 6/04/97

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