NEW YORK -- Coca-Cola Co. shares led the Dow Jones industrial average down yesterday, falling on concern that its profit will be hurt by the dollar's strength against Asian currencies.
The Dow fell 38.29 to 8,110.84, its first decline in seven sessions. The Nasdaq composite rallied for a second day, gaining 17.64 to 1,651.54.
"You're seeing a rotation from the more stable companies, that have led the S&P; to new highs, to small and midcap stocks," said Bill O'Hearn, a money manager with McKinley Capital Management Inc. in San Francisco, which oversees about $1 billion.
The Standard & Poor's 500 index, up 33 percent this year, fell 1.42 to 982.37.
Among other broad market indexes, the Russell 2,000 index, which tracks small and midcapitalization companies, rose 3.97 to 442.03, its biggest gain in a week; the Wilshire 5,000 index of stocks on the New York, American and Nasdaq stock exchanges added 3.45 to 9,411.33; the American Stock Exchange composite index climbed 3.22 to 673.49; and the S&P; 400 midcap index gained 0.92 to 334.81.
Eight stocks rose for every seven that fell on the New York Stock Exchange. More than 493 million shares changed hands on the Big Board, 13 percent below the three-month daily average.
Coca-Cola fell after Andrew Conway at Morgan Stanley, Dean Witter, Discover & Co. and Jennifer F. Solomon at Salomon Smith Barney cut their earnings estimates for the No. 1 soft-drink company. Both cited the dollar's strength against the yen, as currency earned overseas will be worth less when converted into dollars.
Microsoft Corp. led the Nasdaq higher, climbing $3 to $146.125. Intel Corp., rose 87.5 cents to $78.4375. Cisco Systems Inc. closed up 37.5 cents to $89.75.
The Nasdaq, dominated by technology companies, has gained 7.6 percent since the market tumbled Oct. 27.
Meanwhile, the Dow, filled with huge multinationals, many of them regarded as safe, steady growers, is up 13 percent. The average is off less than 2 percent from its Aug. 6 high of 8,259.31.
Banks rose after First American Corp. said it agreed to buy Deposit Guaranty Corp. and Union Bank of Switzerland and Swiss Bank Corp. said they will merge, intensifying speculation that other combinations are in store. First American fell $5.1875 to $49.5625. Deposit Guaranty rose $4.625 to $57.
Mellon Bank Corp. rose $4.375 to $63; Banc One Corp. gained $1 to $56.50; and NationsBank Corp. rose $1.125 to $62.125.
Green Tree Financial Corp., a financial services company, fell 25 cents to $29.125.
Boeing Co. fell 93.75 cents to $51.4375, after the giant aerospace company said the delivery of as many as 60 of its zTC jetliners will be delayed over the next three years because of slower growth in airline traffic in Asia.
Boeing could see up to 20 deliveries a year pushed back between now and 2000, said Gordon McHenry, the company's director of airline industry analysis for Boeing.
Delta Air Lines Inc. gained $1.375 to $119.1875 after it said it filled 67.75 percent of its seats in November, up from 66.07 percent a year ago. UAL Corp. rose $2 to $93.0625.
America Online Inc., which is up 162 percent this year, rose $2.875 to $87.25. The stock was rated a new "buy" by Frederick W. Moran, a media analyst at the brokerage firm Furman Selz Inc., because it added capacity to fix bottlenecks that have made it hard for subscribers to access AOL.
Fannie Mae fell $1.75 to $54.6875, Freddie Mac lost $1.0625 to $41.75 and Countrywide Credit Industries Inc. fell 50 cents to $42.1875, after the three stocks were reduced to "hold" from "buy" by analyst David Dusenbury at Credit Suisse First Boston. He said demand for mortgage refinancings isn't likely to increase significantly unless Treasury note yields drop.
Pub Date: 12/09/97