Transportation Stocks Drive Dow

Wall Street withstood profit-taking Monday, thanks to a strong move by transportation stocks, and the market steadied on its record-setting course.

The Dow Jones industrial average meandered on both sides of its starting point and finished just below the peak reached in the previous session. It dipped 0.34 to 4,702.39. But broader gauges managed to improve on the highs hit Friday.

Gainers beat losers by about 7 to 5 on the Big Board where trading was brisk. Volume on the NYSE floor came to 409.65 million shares as of 4 p.m. Eastern time, compared to an usually heavy 466.5 million shares Friday, the fourth-busiest NYSE session.

Market analysts were impressed that stocks held up as well as they did given how far prices have risen

The day’s star performers were transportation stocks. The Dow Jones transportation average zoomed 51.47, or 2.80 percent, to a new high of 1,890.98.

Some of the stocks that moved substantially or traded heavily:

NYSE

Archer-Daniels-Midland, down 1-7/8 to 15-7/8 in NYSE-leading volume of more than 22.8 million shares.

The stock received negative attention as details of a wide-ranging government antitrust probe were revealed.

Champion International, up 3-1/8 to 59.

Investors were pleased with the company’s second-quarter results. It earned $187.5 million, or $1.93 a share, in the three months ended June 30 compared to a loss of $31.1 million, or 41 cents a share, a year earlier.

Aluminum Co. of America, down 1-1/2 to 54-1/2.

The stock’s investment rating was downgraded to “hold” from “add” by the brokerage S.G. Warburg.

NASDAQ

Midlantic, up 6-7/8 to 48-1/4.

Investors snapped up the stock following an announcement that PNC Bank plans to acquire Midlantic for $3 billion in stock. NYSE-listed PNC sagged 1-3/4 to 25-1/8.

Microsoft, up 3-5/8 to 99-1/4.

The software powerhouse said it is on target to ship its Windows 95 operating system on Aug. 24.

DSG International, down 6-7/8 to 11-1/8.

Shares of the Hong Kong-based disposable diaper maker went flat after the company said a management buyout plan to take the company private was terminated due to declining profits.

AMEX

American Maize-Products class A, up 5 to 38-3/4.

The battle for control of the corn and tobacco company was resolved.