NEW YORK -- U.S. stocks were mixed yesterday, as declining overseas markets revived concern that slower economic growth outside the United States could undermine corporate profits here.
"There are going to be companies that are very dramatically affected" by an Asian economic slowdown, signaled by yesterday's 4.2 percent drop in Hong Kong's Hang Seng Index, said Mark Donovan, a money manager at Boston Partners Asset Management.
The Dow Jones industrial average rose 14.74 to 7,689.13, a day after soaring 232 points.
The Standard & Poor's 500 index rose 1.77 to 940.76, led by General Electric Co., which told analysts recently that its exposure to the troubles in Asia is small.
The Nasdaq composite index eked out a 1.17-point gain to 1,631.15, paced higher by Dell Computer Corp., up $2.4375 to $85.6875.
Among other broad market indexes, the Russell 2,000 index of small capitalization stocks added 1.33 to 442.31; the Wilshire 5,000 index of stocks on the New York, American and Nasdaq stock exchanges climbed 22.86 to 9,096.59; the American Stock Exchange composite index increased 2.48 to 688.37; and the S&P; 400 midcap index gained 0.99 to 324.46.
Advancing stocks topped those that declined on the New York Stock Exchange by 1,537 to 1,385.
Fluor, one of the world's largest engineering firms, said it sees construction spending slowing in 1998. Its shares rose 25 cents to $37.50 after falling $3.875 yesterday. Foster Wheeler gained 6.25 cents to $32.5625, and GE rose $1.3125 to $68.4375.
Oil-service companies got a boost after Morgan Stanley Group Inc. analyst John Livoli raised price targets for many in the industry.
Global Marine Inc. surged $1.125 to $33.5625 and Diamond Offshore Drilling Inc. jumped $2.625 to $66.25. Bayard Drilling Technologies Inc., an Oklahoma City oil-service company, jumped $4.4844 to $27.4844 in its first day of trading.
TMBR/Sharp Drilling Inc. rose $2.50 to $27 as earnings for the fiscal second quarter ended Sept. 30 rose to 54 cents a share, up sixfold from the year-earlier period. The Philadelphia oil service sector index surged 3.5 percent yesterday to 139.81, bringing its one-month gain to 9.4 percent and its three-month rally to 30 percent.
Varco International Inc., the best performer in that 15-member index in the past three months with a 77 percent gain, rose $2.125 to $66.75.
Computer companies put in a mixed performance. Intel Corp. slid $2.5625 to $75.9375, and Microsoft Corp. rose 12.5 cents to $134.25.
Newbridge Networks Corp. fell $10.0625 to $48.1875 after the telecommunications equipment company said second-quarter earnings will be less than forecast because of lower sales, the second straight disappointment.
Cisco Systems Inc. could give a lift to the networkers and the markets in general today, after it reported earnings of 59 cents a share, beating the average forecast of analysts by 1 cent. Its shares rose as high as $85 in after-hours trading, after a $1.3125 drop to $83.4375 during the regular session.
Compaq Computer Corp. jumped $1.3125 to $68.4375 and Hewlett-Packard Co. rose 93.75 cents to $64.4375.
Safety-Kleen Corp. rose after Laidlaw Environmental Services Inc. made a $1.8 billion hostile bid for the environmental cleanup and motor oil disposal company. The offer is worth $25.85 a share. Safety-Kleen said it would consider the Laidlaw offer and any others it may receive. Safety-Kleen rose $3.8125 to $25.75.
AMF Bowling Inc. rose $2.25 to $21.75 in its first day of trading. The owner and operator of bowling centers sold 13.5 million shares in an initial offering.
Borders Group Inc. jumped $2.75 to a record $28.75 as the book retailer said it will break even in the latest quarter on higher book sales. The company was expected to post a loss of 2 cents a share.
Pub Date: 11/05/97