NEW YORK -- U.S. stocks rose yesterday as investors grew more confident that a repeat of last month's plunge in stock prices isn't in the cards. Eli Lilly & Co. and International Business Machines Corp. led the gains.
The Dow Jones industrial average rose 84.72 to 7,572.48, after a government report showed an unexpected drop in retail sales, the latest indication that the economy is slowing enough to keep interest rates from climbing.
The Standard & Poor's 500 index rose 11.69 to 928.35, and the Nasdaq composite index rose 1.65 percent, or 25.77, to 1,583.51.
Among other broad market indexes, the Russell 2,000 index of small capitalization stocks added 5.02 to 428.41; the Wilshire 5,000 index, comprising stocks on the New York, American and Nasdaq stock exchanges, climbed 108.97 to 8,932.58; the American Stock Exchange composite index increased 5.76 to 672.62; and the S&P; 400 mid-cap index gained 3.79 to 316.71.
Advancing stocks led declining issues by 2-to-1 on the New York Stock Exchange, and trading was heavy for a second day, with 635 million shares traded. Volume has averaged 534 million shares lately.
For the week, the Dow lost 8.84 points, the S&P; 500 rose a fraction and the Nasdaq fell 18.89 points.
Lilly rose $3.25 to $66.875 as investors bought shares before a Food and Drug Administration panel review next week at which the company expects approval of a new osteoporosis drug. Pfizer Inc. rose $2.3125 to $71.3125, and Merck & Co. gained $2.375 to $90.3125.
IBM shares rose $2.375 to $101.50 after an analyst at Soundview Financial said the company is on track to meet fourth-quarter earnings estimates and the company confirmed that it will be laying off several hundred North America division employees.
Walt Disney Co. shares rose for a second day as investors anticipated a strong quarterly earnings report from the media and entertainment conglomerate. Disney gained $2 to $86.6875.
Computer-related shares gained, after having been beaten down recent days on concern that their Asian sales would suffer. Applied Materials Inc. rose $1.6875 to $32.8125; Fore Systems Inc. rose $1.625 to $17.625; and Microsoft Corp. gained $1.75 to $133.3125.
GM fell $1 to $61.25 and was down 5.4 percent for the week. Ford rose 50 cents to $43.375 yesterday but fell 5.2 percent on the week.
The yield on the benchmark 30-year Treasury bond was unchanged at 6.10 percent, a 21-month low.
Oil stocks rose along with crude oil futures prices on news from the Middle East. Chevron Corp. rose $1.9375 to $83.9375, and British Petroleum Co.'s American depositary receipts gained $2.0625 to $86.125. Crude for December delivery gained 30 cents to $21 a barrel.
Gold shares declined in tandem with gold futures, which fell $4.50 to $304.30, a 12 1/2 -year low, amid persistent concern that central banks will sell and lend more gold. Newmont Mining Corp. lost 68.75 cents to $31.0625, and Homestake Mining lost 31.25 cents to $11.125.
Chase Manhattan Corp. fell $3.625 to $103.625, widening its loss for the week to 12 percent, a day after the biggest U.S. bank said it lost $160 million before taxes, trading in emerging markets bonds in October.
American Stores Co. sank $6.375 to $20.50. The company said earnings for the fiscal third and fourth quarters will be lower because of a decline in food sales at its supermarkets and relocation costs at its drugstore chain. The Salt Lake City company operates the Osco Drug and Acme Markets chains.
Green Tree Financial Corp. tumbled $7.625 to $32.75 after the lender said it took a pretax charge of $125 million to $150 million to write down the value of asset-backed securities on its books.
Hong Kong's benchmark Hang Seng index rose 2.4 percent, and Brazil's Bovespa index rose 8.2 percent yesterday, but stocks were broadly lower in Japan and modestly higher in Europe.
Pub Date: 11/15/97