The Dow Jones industrial average spiked to nearly 8,150 on the opening, its first trip over 8,100, then plunged to about 8,060 before closing up 26.71 from Tuesday at a record 8,088.36. The Dow was led by gains in Boeing Co. and International Business Machines Corp.
Computer Associates International Inc., DuPont Co. and other companies reported earnings that met or exceeded Wall Street expectations, helping stocks gain.
Greenspan, in his second day of congressional testimony, repeated the upbeat assessment of the economy that sent the Dow up 2 percent Tuesday. The Standard & Poor's 500 index rose 2.58 to a 936.56, a hair below its July 16 record of 936.59, buoyed by unexpectedly strong earnings from Computer Associates, up $5.25 to $69.5625. The Nasdaq composite index, which is dominated by computer companies, rose 3.79 to 1,567.65, short of its record.
Among broad market indexes, the Russell 2,000 index of small capitalization stocks rose 1.48 to 407.64; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, jumped 29.54 to 8,863.62; the American Stock Exchange composite index added 0.45 to 634.65; and the S&P; 400 midcap index advanced 1.98 to a record 307.10.
Advancing stocks outnumbered decliners 1,733 to 1,167. Volume on the New York Stock Exchange was 620.6 million shares, the seventh heaviest day in exchange history. Volume has averaged about 508 million shares a day over the last three months.
The yield on the benchmark 30-year Treasury bond, which moves opposite to the price, rose 2 basis points to 6.43 percent.
Boeing rose for a second day, gaining $2.6875 to $59.0625 after the European Commission cleared the company's purchase of McDonnell Douglas Corp.
Dow member AlliedSignal Inc. rose $1.0625 to a record $92.25 after the maker of aerospace and automotive parts reported unexpectedly strong earnings and split its stock 2-for-1.
DuPont, also a Dow member, rose $1.4375 to $67.625 after the chemical and petroleum company beat earnings forecasts, helped by strong demand for its synthetic fibers and higher oil-refining profit at its Conoco energy unit.
Mobil Corp. and Chevron Corp. reported second-quarter earnings that exceeded estimates, as higher refining profits continued to help offset drops in crude oil and natural gas prices for major U.S. oil companies.
Chevron shares fell 81.25 to $76.8125 and Mobil fell $2 to $73.50. Both stocks rose to 52-week highs Tuesday after Texaco Inc. and Amoco Corp. reported earnings.
Minnesota Mining & Manufacturing Co., which makes Scotch Tape and Post-It Notes, fell $1.8125 to $98.50 after the company reported unexpectedly weak second-quarter earnings. 3M said the strong U.S. dollar offset the impact of higher sales and will continue to cut into earnings.
Bay Networks Inc. rose $2.625 to $31.875 after the maker of computer networking equipment reported fiscal fourth quarter earnings that beat expectations even though they fell 45 percent from year-ago levels. Analysts at Goldman, Sachs & Co. and Lehman Brothers Inc. raised their investment ratings on the stock.
Computer stocks fueled the gains in the S&P; 500 for a second day as investors dismissed concern about profit growth that pulled prices down from records last week. Dell Computer Corp. gained $4 to $164; Compaq Computer Corp. rose $6.875 to $138.375; IBM rose to $2.125 to $105.125; and 3Com Corp. rose $1.328125 to $57.8125. All except 3Com hit records.
Baker Hughes Inc. tumbled $4.125 to $41.875 after the oil field services company made cautious comments about future growth in a conference call with analysts.
Pub Date: 7/24/97