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Spokane, Washington  Est. May 19, 1883

Stocks Overcome Tobacco Losses To Turn Higher

Associated Press

Stocks struggled past some bad news for the tobacco industry to post modest gains Monday.

The Dow Jones industrial average rose 23.67 to 5,704.98 as a weekend selloff in Philip Morris shares was offset by gains in other consumer components of the blue-chip measure. Excluding Philip Morris, the Dow measure would have gained nearly 50 points.

Broad-market indexes were mostly higher after spending most of the session with narrow losses.

But trading was mostly sluggish, with many investors holding to the sidelines while waiting for this week’s economic data, worried that after Friday’s yawn at another encouraging inflation number, there may be more downside risk than upside potential.

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

NYSE

Philip Morris, up 2-3/4 at 93-5/8.

RJR Nabisco, down 1/8 at 27-7/8.

B.A.T Industries (Amex), down 5/8 at 15

Loews, down 5 to 77-1/2.

Late Friday, a Florida jury awarded $750,000 to an addicted smoker who sued Brown & Williamson Tobacco, a division of B.A.T Industries. The award exposed potential cracks in the cigarette companies’ legal armor.

NorAm Energy, up 2-7/8 at 14-1/2.

Houston Industries is acquiring NorAm Energy, the nation’s third-largest natural gas distributor, for $3.8 billion. Houston Industries, an electric utility, will pay $2.4 billion in equal amounts of cash and stock for all the shares of NorAm, valuing them at $16 each.

NASDAQ

IVI Publishing, down 1-1/4 at 1-5/8.

The electronic publisher confirmed that AT&T had discontinued its AT&T HealthSite featuring IVI’s medical related content from sources such as the Mayo Clinic. IVI will continue to deliver its products and services on CD-ROM, online, and on cable television.

Triple P, down 1-3/4 at 5.

The Netherlands-based software company predicted a third-quarter loss and said it would explore selling some units to increase profits. Triple P blamed the disappointing forecast on weaker-than-expected demand, combined with heavy spending on marketing and developing new products. Triple P also said it will buy back as many as 500,000 shares of stock over the next year.

AMEX

Comforce, down 1-1/8 at 17-3/8.

A column in Barron’s Magazine suggested the staffing and consulting concern’s stock is trading at too high a price.