Dow Gains Despite Technology Slump
Stocks ended Wednesday’s session on a mixed note, as blue-chip issues extended a record-shattering performance but technology stocks came under selling pressure.
The Dow Jones industrial average rose 21.68 points to 5,199.13, logging its third consecutive record and its 68th new high for the year.
The blue-chip index was up more than 30 points in late morning in sympathy with bonds, breaching 5,200 for the second day in a row. But it retreated in early afternoon, sinking briefly with bonds into negative territory before recovering two-thirds of the day’s best gains.
Advancing issues had a slim 8-to-7 lead on decliners on the New York Stock Exchange. Volume was moderate at 417.77 million shares as of 4 p.m., down from 434 million Tuesday.
Broad-market indexes were mixed. The NYSE’s composite index and the Standard & Poor’s 500-stock index gained, but the Nasdaq composite index fell.
Some of the stocks that moved substantially:
NYSE
AT&T fell 1-5/8 to 65-1/2.
Seven senior executives exercised options to sell 281,403 shares, worth $17.6 million, after the telecommunications giant’s said it will split into three companies, The Wall Street Journal reports.
Computer Associates fell 4-1/8 to 63-3/4.
The stock fell in sympathy with other computer-related issues, even after the company introduced a new network and system management system which businesses can use on the Internet. The software developer is based in Islandia, N.Y.
CBI Industries fell 1 to 32-1/4.
Smith Barney downgraded the stock to “underperform” from “neutral,” saying a hostile bid by Praxair hasn’t lured in other bidders. Praxair indicated that it is not likely to raise its $32-a-share offer for CBI, the Wall Street Journal reported. CBI, based in Oak Brook, Ill., produces industrial gas.
Data General rose 1 to 13-3/8.
The Westboro, Mass. company has not participated in this year’s run-up in technology stocks, and it is starting to look attractive, The New York Times reported.
NASDAQ
Microsoft rose 4-5/8 to 90-5/8.
The software maker’s stock bucked a downward trend in computer-related issues, after Chief Executive Bill Gates strongly denied that his company purposely included in its new Windows 95 program features that disabled other companies’ Internet software.
Broderbund rose 3-1/4 to 59.
The children’s software developer’s stock slid 6-3/8 on Tuesday, after rival Softkey International amended a legal complaint against Broderbund and Learning Co., alleging that Broderbund made “false and misleading statements” about Softkey’s financial condition in connection with Softkey’s bid for Learning. Softkey sued Broderbund and Learning Co. after Learning Co. sued Softkey, alleging securities laws violations.