Dow Industrials Crack 5,900 Mark

The Dow Jones industrial average finished above 5,900 for the first time as the latest economic news sent interest rates lower in the bond market Tuesday.

But technology shares slumped amid more selling to cash in on last month’s rally, while the record-setting rebound from July’s selloff remained hindered by growing uncertainties about corporate earnings during the just-ended third quarter.

The Dow industrials rose 22.73 to 5,904.90, beating the Sept. 23 record finish of 5,894.74. The Standard & Poor’s 500 list and the New York Stock Exchange composite index, which are also dominated by large companies, added to Monday’s record highs, but the gains were similarly modest.

“The market is really laboring,” said Michael Metz, vice president of Oppenheimer & Co. “Everything is at a high. But looking into the market, there’s increasing risk aversion. People are concentrating on a small class of blue-chips.”

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

NYSE

America Online, down 3-1/2 at 32.

The nation’s largest online service said it is having trouble keeping subscribers and warned that growing competition from the Internet and rival online services could hurt its financial condition.

Student Loan Marketing Association, up 3-7/8 at 78-1/2.

President Clinton signed legislation Monday night stipulating that the association, known as Sallie Mae, will cease to be a government-sponsored enterprise even if its shareholders reject the option of transforming the company into a completely private firm by 2008. Sallie Mae plans to submit a privatization plan to its shareholders by the middle of 1997.

NASDAQ

HCIA, down 27-1/8 at 32-7/8.

The Baltimore-based health-care information provider said late Monday it won’t meet earnings expectations for its third and fourth quarters.

Vacation Break USA, down 2-1/2 at 8-3/4.

The Fort Lauderdale, Fla.-based developer of time-share resorts in Florida and the Bahamas may report a loss in its third quarter due to lower than expected vacation business and tours of its properties.

AMEX

Ivax, down 2-1/4 at 14.

The Miami-based maker of generic drugs expects to report a third-quarter loss of about $43 million and is moving to overhaul its operations. Ivax said late Monday its results were hurt by high customer inventory levels, declining prices, and a customer filing for bankruptcy protection.