NEW YORK -- U.S. stocks were mixed yesterday as General Motors Corp., Aluminum Co. of America and other shares that do best in an expanding economy gained, offsetting declines in computer and drug issues.
The Dow Jones industrial average rose 7.67 to a record 8,121.11. The Standard & Poor's 500 index fell 2.34 to 936.45 and the Nasdaq composite index, heavily weighted with computer shares, dropped 6.05 to 1,563.53.
Among broad market indexes, the Russell 2,000 index of small capitalization stocks rose 0.14 to 408.68; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, slid 17.77 to 8,867.93; the American Stock Exchange composite index added 1.55 to 639.35; and the S&P; 400 midcap index lost 0.85 to 306.91.
Declining and advancing stocks were almost evenly matched on the New York Stock Exchange, as 1,424 issues fell and 1,445 rose. About 467 million shares changed hands, below the three-month daily average of 511 million.
The yield on the benchmark 30-year Treasury bond dropped 5 basis points to 6.40 percent. J. P. Morgan rose $1.4375 to $110.75; Donaldson, Lufkin & Jenrette Inc. rose $2.0625 to $66.625; KeyCorp rose $1.3125 to $60.75; and First Union Corp. rose $1 to $99.0625.
American Express Co. fell 68.75 cents to $78.875 after the financial services company reported second-quarter earnings in line with expectations. Losses in the company's credit card unit widened.
Personal computer stocks fell for a second day on concern prices are higher than justified by prospects for earnings, after analyst Andrew J. Neff at Bear, Stearns & Co. cut his investment rating on Dell Computer Corp. to "attractive" from "buy."
Dell, which split its stock 2 for 1 yesterday, fell $2.625 to $78.875. ABout 16.9 million shares changed hands, making Dell the most active stock on U.S. exchanges. The shares tripled this year as investors bet that computer sales would be robust.
Compaq Computer Corp., the world's biggest PC company, fell $3.625 to $132; International Business Machines Corp. lost $2 to $105; and Gateway 2000 Inc. fell 68.75 cents to $39.8125. Hewlett-Packard Co. bucked the trend, rising 75 cents to $66.25.
Among consumer stocks, Procter & Gamble fell $2.0625 to $151.25 and Gillette Co. fell $3.5625 to $98.0625.
Drug stocks fell for a second day after Pfizer Inc. said its earnings for the second half of the year could fall short of expectations. Merck & Co. dropped $2.375 to $100.625; Pfizer fell $1.6875 to $57.9375; and Bristol-Myers Squibb Co. lost $2.50 to $79.375.
The Morgan Stanley cyclical index rose 2.63 to 507.04 and the Morgan Stanley consumer index fell 1.65 to 423.90.
Alcoa rose $2 to $86.3125. Aluminum prices climbed to a 19-month high in London after economic reports in Japan and the U.S. pointed to robust demand for two of its main end products -- cars and airplanes.
Japan said vehicle exports rose for a 13th straight month, and the U.S. durable goods report Friday showed an increase in commercial aircraft orders.
Alcan Aluminium Ltd. rose $2 to $38.375 and Reynolds Metals Co. gained $1.375 to $75.25.
Oil stocks, another cyclical group, also rose. Atlantic Richfield Co. rose $1.4375 to $71.4375 after the company said profit fell from last year's level but exceeded analysts' forecasts.
General Motors rose $1.625 to $58.50, gaining after hourly workers at a Michigan transmission plant ratified a new local contract, ending a five-day strike.
Chips & Technologies Inc. rose $3.0625 to $17.0625 on news that Intel Corp. agreed to buy the specialty semiconductor company for $17.50 a share in cash, valuing the company at more than $402 million.
The purchase price is a 25 percent premium to Friday's closing price of $14 for Chips & Technologies. Intel fell 62.5 cents to $88.1875.
Pub Date: 7/29/97