Investors Set Volume Record As Stocks Sink

Stocks fell Friday as a record for trading volume that had stood since the day after the 1987 stock market crash was toppled on the New York Stock Exchange.

The unprecedented volume was tied to the socalled “triple witching” expiration of stock options and futures, and to continued selling of technology issues as investors cashed in on the big gains of the year.

The Dow Jones industrial average traded in a narrow range all day, losing a maximum of 16 points around 2:30 p.m. before closing the day down 5.42 points at 5,176.73. Despite the minor retreat Friday, the blue-chip average still gained 19.87 points for the week.

Volume on the NYSE was the heaviest in history at 636.79 million shares as of 4 p.m., topping the 608.15 million that changed hands on Oct. 20, 1987, the day after the 1987 Black Monday crash.

The exchange said its trading systems had capacity to spare even in the peak periods of the day.

Broad-market indexes were dragged down by another poor performance of technology shares.

Some of the stocks that moved substantially:

NYSE

Kmart fell 1-1/8 to 6-3/8.

The stock sank on rumors of a bankruptcy filing and liquidity concerns. Investors were said to be disturbed by a reported lack of progress on KMart’s talks with holders of $681 million of real estate debt which its holders may force the company to repurchase. KMart said it does not intend to file for bankruptcy protection.

Micron Technology fell 4-7/8 to 45-1/8.

Micron said late Thursday that it earned $1.51 per share for the three months ended Nov. 30, up from 75 cents a year ago. Revenues rose to $1.2 billion from $535 million. But the Boise, Idaho chipmaker warned that because of competitive pressures, it may be forced to cut the price of its memory chips delivered next quarter.

Texas Instruments fell 3-3/4 to 49.

IBM fell 3-5/8 to 90-1/8.

Hewlett-Packard fell 1-3/4 to 76-3/8.

Micron’s and Apple’s news dragged down the stocks of other computer companies.

United Healthcare rose 2 to 65.

Humana Inc. rose 1/4 to 27-1/8.

Mid-Atlantic Medical rose 5/8 to 23-3/8.

Salomon downgraded United Healthcare to “buy” from “strong buy,” upgraded Humana to “strong buy” from “buy,” and upgraded MidAtlantic Medical to “strong buy” from “buy.”

NASDAQ

Apple Computer Inc. fell 3 to 35-1/4.

The computer maker said it expects to lose money in the final three months of the year, adding that profit from each sale had dwindled. Wall Street analysts had been expecting a profit of around 80 cents per share in the first fiscal quarter ending Dec. 31. A year ago in the quarter the company earned $1.55 per share.

Centocor rose 9-3/4 to 24.

Smith Barney, Lehman and Dillon Read upgraded the stock after Centocor stopped trials on its ReoPro anti-clotting drug because of strong interim findings that it reduced the chance of death and heart attacks following balloon angioplasty procedures. ReoPro is an anticlotting drug intended to reduce complications in patients undergoing angioplasty. Centocor is based in Malvern, Penn. The news also boosted shares of Eli Lilly by 2 to 104-3/4. Lilly is Centocor’s marketing partner for ReoPro.