Economic Data Derails Stock Rally

Stocks finished mixed on Tuesday after strong economic data renewed fears of higher interest rates and derailed a two-day rally.

Still, investors apparently remained cautiously optimistic. Of the major market indicators, only the Dow Jones industrial average ended with a negative finish, falling 1.68 points to 3,930.66.

Advancing issues outnumbered declines by about 11 to 8 on the New York Stock Exchange.

Volume on the floor of the Big Board came to a heavy 331.57 million shares, up from 314.80 million in the previous session.

The Federal Reserve said output at the nation’s factories, mines and utilities advanced 1 percent last month, compared to a forecast rise of 0.6 percent. The Fed also said capacity utilization rose to 85.4 percent, while private economists had forecast an 85 percent level.

Mostly, investors took a time out after running up the stock indexes between 5 1/2 percent and 7 1/2 percent since early December, said James Solloway, director of research at Argus Research Corp.

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

NYSE

NationsBank, down 1 7/8 to 46 5/8.

Fourth-quarter earnings were $1.46 a share vs. $1.37 a share in the same three months last year. The earnings, however, were below expectations of some analysts.

Chrysler, down 1 1/4 to 51 5/8.

The company said it earned more than $3.7 billion in 1994, the best year in the company’s 69-year history. Earnings-per-share were $3.20 for the fourth quarter compared with $2.11 earned in the same period last year. Still, profits were below some Wall Street expectations.

NASDAQ

Intel, down 1 1/8 to 67.

The company said after the close of trading that fourth-quarter earnings were 86 cents a share vs. $1.35 a share in the same three months last year. Apparently, many investors anticipated the report.

Quixote Corp., down 2 1/2 to 10.

The company said late Monday it will record an expense of $685,000, or 5 cents a share after tax, in its fiscal second quarter ended Dec. 31, from a judgement against the company’s Convergent Business Systems Inc.

Cyrk, down 5 3/4 to 17 1/4.

According to The New York Times “Marketplace” column, investors have ignored danger signs.

AMEX

Charter Medical, unchanged at 16.

Bear Stearns apparently upgraded a rating on the stock.