Dow Drops 11.56 As Technology Downloads

The Dow Jones industrials on Monday failed to extend last week’s run to record levels, drifting instead to marginally lower prices in a session marked by weakness in technology issues.

Stocks also came under pressure from bonds and the dollar.

But while blue-chips and broad markets indexes lost ground, transportation issues soared, including a new high for the Dow Jones transportation index.

The Dow industrials ended down 11.56 to 4,814.01. The blue-chip index hovered at slightly depressed levels all day, then took a big dip with bonds and the dollar in the last 30 minutes of trading.

Advancing issues had a thin lead on decliners on the New York Stock Exchange. Volume was moderate at 309.09 million shares as of 4 p.m., down from 344.36 million last Friday.

One bright spot was transportation stocks, which rose after Roadway Services said it would sell its air transport division. That helped to push the Dow Jones transportation index up 19.50, or 0.98 percent, to 2,010.45, breaking its Sept. 18 closing record of 2,000.39.

Some of the stocks that moved substantially:

NYSE

Pratt & Lambert United rose 13-7/8 to 34-5/8.

Sherwin-Williams fell 1/8 to 37-1/2.

Sherwin-Williams agreed to acquire Pratt & Lambert, a supplier of coatings and adhesives, for $35 a share, or about $400 million.

Roadway rose 3-3/4 to 40.

The transportation company said it will sell its troubled air freight business to an undisclosed buyer.

First Interstate Bank fell 7/8 to 126-7/8.

First Bank Systems fell 1 to 49-7/8.

Wells Fargo fell 1-5/8 to 210-5/8.

First Interstate, which has been fighting an unwelcome takeover bid from Wells Fargo, agreed to be acquired by First Bank System of Minneapolis for a record $10.3 billion in stock, slightly higher than Wells Fargo’s $10.1 billion offer. Wells Fargo said it remains interested in First Interstate.

Federal Paper Board rose 6-1/2 to 62.

International Paper fell 1 to 36-1/8.

International Paper agreed to buy Federal Paper Board in a deal worth $3.5 billion including debt. The offer of $55 a share in cash and stock was 21 percent more than Federal Paper’s closing price on Friday.

NASDAQ

Networth rose 6-7/8 to 41-3/8.

Compaq agreed to acquire NetWorth Inc., an Irving, Texas-based maker of computer networking products, for $42 a share, or about $372 million. Compaq’s stock slipped 5/8 to 55-7/8 on the Big Board.

Microsoft fell 2-1/8 to 97-3/8.

Goldman Sachs dropped Microsoft from its priority list to its recommended list, predicting slower earnings growth in 1997.