Wary Investors Drive Dow Lower

Stocks finished mostly lower on Wednesday, as investors sold blue-chip issues in favor of technology names.

The Dow Jones average hovered at slightly lower levels for most of the session, until a sharp sell-off around 2 p.m. pushed it down more than 30 points. But computerized buying programs trimmed the Dow’s losses by the end of the day.

According to preliminary figures, the Dow average fell 12.45 to close at 4,422.60.

Declining issues led advancers by a 4-to-3 margin on the New York Stock Exchange. Volume was moderately heavy at 347.91 million shares as of 4 p.m., down from 366.15 on Tuesday.

“This morning, people bought basic materials thinking the economy could have a soft landing,” said Leon Brand, international stock analyst at NatWest Securities.

“But as the volatility started to increase during the day and we started to see the so-called winners being hit, investors started to get nervous.”

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

NYSE

Compaq rose 1 1/4 to 40.

Hewlett Packard rose 3/4 to 70 1/4.

The issues of personal computer makers continued to rise amid growing enthusiasm for technology orders.

Micron Technology rose 2 7/8 to 90.

Texas Instruments rose 2 3/8 to 118 7/8.

National Semiconductor rose 1 3/8 to 27 7/8.

Semiconductor issues were higher after the Semiconductor Industry Association increased its forecast of microchip sales, to up about 40 percent this year compared with an October forecast of up 15 percent.

Boeing rose 1 3/8 to 57.

The aircraft maker received an order for six 767-500 twinjets, valued at $186 million, from Maersk Air of Denmark, which also secured options on seven additional 737-500s.

NASDAQ

Intel rose 1 7/8 to 110 3/4.

Microsoft rose 1 1/8 to 86.

Silicon Valley rose 2 5/8 to 35.

Novellus Systems rose 4 3/4 to 66 1/2.

Semiconductor stocks continued to show strength amid shortcovering ahead of Friday’s options and futures contract expirations, and in reaction to Applied Materials’ strong earnings.

AMEX

Struthers Industries rose 3/4 to 2.

The maker of aircraft landing gear and equipment said it would acquire some assets of World Interactive Network, including some consumer interactive computer technology, for $70 million to $100 million.