Dow Edges Closer To 4,000 Mark

The Dow Jones industrial average failed to break the closely watched 4,000 mark on Thursday, hampered by investor selling and concerns about the weak dollar and the Mexican financial crisis.

But the blue chip index reached a new high for the second day in a row, closing at 3,987.52, up 1.35. The Dow average extended Wednesday’s 27.92-point rise to 3,986.16, which shattered a record high set about a year ago and gave some market participants hope of going to 4,000 soon.

The broader S&P 500 index set a new high for the third consecutive session, rising 0.68 to 485.22.

But this week’s record high levels, and the strong performance of stocks in the last three months, led some investors to question how much farther it could go. The Dow has gained nearly 290 points since Dec. 1, and it has risen nearly 50 points so far this week.

“The market has been on a nice tear for the last few trading days,” said Timothy Heekin, head of block trading at Salomon Brothers. “I think it would be healthy for the market to come in a bit and consolidate.”

Declining issues outnumbered advancers by about 3 to 2 on the New York Stock Exchange. Big Board volume totaled 360.98 million shares as of 4 p.m., down from 377.95 million on Wednesday.

Some of the stocks that moved substantially or traded heavily Thursday:

NYSE

RJR Nabisco fell 1/8 to 5 5/8.

Borden fell 1/4 to 12 3/4.

RJR said Wednesday that it will pay an initial cash dividend of 7.5 cents a share and said its board approved a 1-for-5 reverse stock split. Also, Kohlberg, Kravis Roberts & Co. said it would sell more of RJR than it had planned, as part of KKR’s acquisition of Borden.

Hewlett-Packard rose 7 1/2 to 112 7/8.

The personal computer maker announced a 2-for-1 stock split and raised its quarterly dividend on common stock to 40 cents from 30 cents. The company also said its firstquarter net income came to $2.30 per share, much higher than analysts’ expectations of $1.76.

NASDAQ

Microsoft rose 1/8 to 60 7/8.

The Justice Department and Microsoft asked an appeals court to overturn a federal judge’s rejection of the company’s antitrust settlement.

AMEX

Gaylord Container fell 3/8 to 12.

The stock surged Wednesday following reports of good price increases in its paper and linerboard business.