NEW YORK -- U.S. stocks fell yesterday, with Dell Computer Corp. leading computer and semiconductor-makers lower after an analyst cut his sales estimate for the company.
The report on Dell followed warnings in recent weeks that sales are slowing at Compaq Computer Corp. and Oracle Corp. International Business Machines Corp. led a slump Friday after an analyst pointed to a slowdown in its computer business.
The Dow Jones industrial average fell 13.04, to 9,890.51; the Standard & Poor's 500 index lost 2.28, to 1,297.01, and the Nasdaq composite index dropped 25.33, to 2,395.94.
Elsewhere on the broad market, the Russell 2,000 index, a benchmark of small-cap stocks, lost 3.38, to 393.20; the Wilshire 5,000 index fell 33.47, to 11,781.87; and the S&P; 400 midcap index slid 1.51, to 360.80.
The American Stock Exchange composite index advanced 5.49, to 717.36.
The Sun-Bloomberg Maryland index of the top 100 Maryland stocks dipped 1.06, to 181.35.
Dell most active
Three stocks fell for every two that rose on the New York Stock Exchange, where 662.4 million shares traded.
Dell was the most active U.S. issue, with 55.2 million shares changing hands. Dell, the world's biggest direct seller of personal computers, fell $2.375, to $37.875, after Donaldson Lufkin & Jenrette Securities Corp. analyst Kevin McCarthy cut his estimates for its earnings and revenue.
Dell's rivals also declined. Compaq lost 56.25 cents, to $30.1875; IBM dropped $1.3125, to $167.25; and Hewlett-Packard Co. fell $2.0625, to $68.8125. Intel Corp., the largest maker of semiconductors for personal computers, sank $3.875, to $115.125.
America Online Inc. rose $10.625, to $129.875, after ING Baring Furman Selz LLC analysts Frederick Moran and David Levy predicted that the company will have 20 million subscribers by mid-1999, allowing it to dominate Internet service provision. They reiterated their "strong buy" recommendation on AOL, saying marketing has raised consumer awareness of AOL. They expect the stock to reach $180 within nine months.
Settlement talks
Microsoft Corp., the world's largest software maker, climbed $1.625, to $172.8175, after people familiar with the talks said the company plans to start settlement talks with the Justice Department and 19 states to try to end its antitrust trial.
Cable television companies rose after Comcast Corp. agreed to buy MediaOne Group Inc. for $60 billion. MediaOne rose $7.75, to $68.50, after Comcast, the No. 4 U.S. cable TV company, said it would pay 1.1 share for each MediaOne share, a 32 percent premium to MediaOne's $60.75 closing price Friday. Comcast fell $5.375, to $64.75.
The offer triggered gains in other cable companies. TCA Cable TV Inc. rose $3, to $46.375. At Home Corp., which provides broadband Internet services over the cable TV network, jumped $6.1875, to $140.
Excite Inc. gained $6.9375, to $128.6875; Mindspring Enterprises Inc. climbed $6.50, to $95.625; and Network Associates Inc. advanced $2.5625, to $30.625.
Boeing contracts
Boeing Co. rose 81.25 cents, to $34.8125, after the No. 2 U.S. defense contractor said it could receive about $4.1 billion in government contracts President Clinton put in the federal budget for a national missile defense system. Ned Riley, chief investment officer at BankBoston Corp. said the stock, up 4 percent so far this year, is a "strong long-term buy."
Oil stocks rose ahead of a meeting today on production cuts by the Organization of Petroleum Exporting Countries. Chevron Corp. added 87.5 cents, to $88.375; Exxon Corp. gained 68.75 cents, to $73.75; and Schlumberger Ltd. rose $1.75, to $58.8125.
J. P. Morgan & Co. added $3.3125, to $126.4375, on speculation that it may be bought by Chase Manhattan Corp., which has said it is interested in a merger with a securities firm or another bank, according to Bradley Ball, a bank analyst at Credit Suisse First Boston.
America West accord
America West Holdings Corp. rose $1.125, to $18.75, after flight attendants of the No. 9 U.S. airline reached a tentative agreement on a five-year contract, averting a strike that could have disrupted flights during the spring break season.
Ultramar Diamond Shamrock Corp. fell $1.1875, to $19.9375, after the nation's second-largest oil refiner and gasoline marketer and Phillips Petroleum Co. said they are scrapping plans to combine their North American service-station and oil-refining units.
Bush Boake Allen Inc., a maker of flavors and fragrances, fell $2.375, to $27.
The company said late Friday that it would earn between 21 cents and 24 cents a share in the first quarter, short of analysts' 41-cent average.
Pub Date: 3/23/99