Dow Bucks Plunge In Dollar, Edges Up 9.68
The Dow Jones industrial average inched higher Friday, defying a plunge in the dollar and steep runup in interest rates. But the broader market was mixed.
A late burst of buying pushed the Dow average up 9.68 to close at 3,989.61. The blue chip index spent most of the session in negative territory.
Buoyancy all day in technology issues help head off steep losses, and bottom-fishing late in the session among economically sensitive issues put the Dow over the top.
Don Hays, director of investment strategy at Wheat First Butcher Singer Inc. in Richmond, Va., said equities were taking support from robust corporate earnings and a reversal of market sentiment, for the first time in many weeks, to the bullish side.
“Earnings-momentum stocks are doing very well,” Hays said. These include “higher-growth stocks, anything in technology or health care.”
But declining issues outnumbered advancers by about 6 to 5 on the New York Stock Exchange. Big Board activity was brisk, with 330.82 million shares changing hands, compared with 329.43 million on Thursday.
The dollar skidded to 94.05 yen, a new low against the Japanese currency, and to 1.425 Deutsche marks, its lowest level since October 1992, despite concerted efforts by international central banks to support it.
Some of the stocks that moved substantially or traded heavily Friday:
U.S. Shoe, up 5-3/8 at 24-1/8.
Luxottica Group’s American depositary receipts fell 7-1/8 to 32-1/2.
The company received an unsolicited, $1.2 billion, or $24 per share, buyout offer from Luxottica Group, an Italian eyeglass maker.
Philip Morris rose 1 to 62.
The food and tobacco conglomerate told analysts Thursday that it expects “superior” earnings growth in 1995 and beyond, and that it will not spin off its food unit.
IBM rose 2-5/8 to 79-7/8.
Compaq rose 1 to 34-5/8.
Advanced Micro Devices rose 1-3/4 to 31-1/2.
Hewlett-Packard rose 7/8 to 116-5/8.
Micron Technology rose 2-1/8 to 68.
Computer stocks shot higher after Hewlett-Packard cut personal computer prices and introduced two new products based on Intel’s Pentium chip. Intel rose 2 57-64 in Nasdaq trading.
Texas Instruments rose 31/8 to 86-1/2.
The company cut the price of its TravelMate 4000M notebooks by 10 percent to 22 percent.
Oracle Systems rose 1-1/4 to 32-7/8.
Dell Computer rose 1-3/4 to 42.
Sun Microsystem rose 1-1/2 to 32.
Computer stocks rose after Hewlett-Packard and Texas Instruments cut prices and in reaction to rosy sales projections earlier this week.
America OnLine fell 5-1/4 to 85-1/4.
The stock rose sharply earlier this week after Bertelsman AG confirmed plans to buy a minority stake in the computer online network service. Also, America Online said its subscriptions are growing faster than expected, and analysts raised their earnings forecasts.
Semtech rose 2-1/8 to 10-7/8.
The company reported fourth-quarter earnings late Thursday of 12 cents per share, up from 2 cents a year ago.
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