Dow Resumes Climb, Reaches Another Record
Enthusiasm over corporate earnings overcame another bout of inflation and interest rate fears, lifting the Dow Jones industrial average and other stock measures to new highs on Thursday.
The Dow rose 38.49 to 6,765.37, barely beating Tuesday’s record close of 6,762.29 to give the red-hot blue-chip barometer its seventh new high in nine sessions. The Dow, which briefly slipped into negative territory after surrendering an early 55-point gain, has already advanced nearly 5 percent less than three weeks into 1997.
Broad-market measures also posted modest gains, with several closing at record highs after recovering from an afternoon slide brought on by an increasingly jittery bond market.
“It looked like the market was going to take a well deserved time out. We had good excuses to take it down today,” said Alfred E. Goldman, vice president at A.G. Edwards & Sons of St. Louis. “We’ve been in a correction in the bond market for a while, but the mood is one in which people want to own stocks.”
Advancing issues outnumbered decliners by nearly an 8-to-7 margin on the New York Stock Exchange, where volume was heavy again at 532.33 million shares, up from 525.02 million on Wednesday.
Some of the stocks that moved substantially or traded heavily Thursday:
NYSE
Digital Equipment, up 2-1/2 at 36-3/4.
As expected, the computer maker reported a big drop in profits for its second quarter ended Dec. 28, but the results exceeded analyst forecasts.
Eastman Kodak, up 4-1/4 at 85-1/2.
The company’s fourth-quarter profits fell 40 percent due to expenses related to the sale of its copier division and an overhaul of its photofinishing business overseas. But excluding one-time items, Kodak’s earnings jumped 30 percent for the period, surpassing expectations.
Tommy Hilfiger, up 4-1/2 at 50.
The sportswear maker reached a licensing arrangement under which Pepe Jeans London will distribute Hilfiger products in Europe.
NASDAQ
Sun Microsystems, up 2-13/16 at 31-1/16.
Morgan Stanley upgraded the stock after the company reported a 41 percent increase in its profits for the October-December period, beating forecasts by a small margin.
Apple Computer, down 1/2 at 16-3/4.
The computer maker’s latest financial results renewed concerns about the company’s continuing struggles to reinvent itself. Apple said late Wednesday it lost $120 million, or 96 cents a share, in its first quarter ending Dec. 31.
Summa Four, up 3-3/8 at 11-3/4.
The maker of telephone switches posted third-quarter earnings that were well above analysts’ expectations.