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Spokane, Washington  Est. May 19, 1883

Dow Edges Up In See-Saw Session

Associated Press

Stocks ended a see-saw session with modest gains Wednesday, as earnings disappointments in the technology sector nearly canceled out encouraging news about interest rates.

The Dow Jones industrial average ended the day up 8.75 at 3,871.45. The blue chip index fell 17 points early in the session, reversed course at midmorning and gained as much as 29 points, but backed off in the last hour of trading.

Advancing issues outnumbered decliners by about 5 to 4 on the New York Stock Exchange. Big Board volume totaled 341.93 million shares as of 4 p.m., against 325.18 million in the previous session.

Stocks opened lower with bonds after the National Association of Realtors said sales of previouslyowned homes jumped 4.3 percent in 1994 to the second-highest level on record despite higher mortgage rates.

The housing data supported earlier fears that the economy was growing at an inflationary pace, and that the Federal Reserve would soon tighten interest rates.

But bonds turned around, pulling stocks with them, after Fed Chairman Alan Greenspan told the Senate Finance Committee he doesn’t expect a resurgence of inflation over the long term.

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

NYSE

Compaq fell 5 to 37-3/8.

The computer maker reported a 61-percent rise in fourth-quarter net earnings, to 90 cents a share from 58 cents. But that was below analysts’ expectations of 95 cents per share. And the company said its firstquarter earnings would be about even with last year’s first-quarter results of about 80 cents per share.

IBM fell 1-5/8 to 72-3/8.

Micron Technology fell 1-3/4 to 45-3/4.

Computer stocks moved broadly lower in sympathy with Compaq.

Boeing fell 1-1/8 to 46-5/8.

The defense company said its fourth-quarter profits fell 48 percent, citing declining deliveries of its jet airliners, rising costs and lower investment income.

NASDAQ

Intel Corp. fell 5/8 to 70-7/8.

Apple Computer fell 41-64 to 40 63-64.

Computer stocks were broadly lower after Compaq said its firstquarter earnings would disappoint.

AMEX

Charter Medical rose 5/8 to 15-3/8.

The hospital operator said its firstquarter operating earnings for the three months ending Dec. 31, will be $43 million, up from $40 million a year ago, but earnings per share will fall to 45 cents from 55 cents.