Dow Edges Higher, But Falls Short Of 5,000

The Dow Jones industrials closed just shy of 5,000 Friday, but still rose to a record high for the seventh time in eight sessions.

The Dow average climbed 20.59 to 4,989.95, easily topping Thursday’s record and pushing past a 30 percent gain for 1995. It’s the 60th record close in the Dow average for the year, the first time that’s happened in the 20th century.

The closely watched blue-chip average got as high as the 4,996 level in intraday trading as investors brushed aside the continued budget fight in Washington and bet instead that interest rates would soon be lowered.

Advancing issues edged out declines by 6 to 5 on the New York Stock Exchange. Volume was heavy at 429.39 million shares as of 4 p.m., up from 418.43 million on Thursday.

There was a powerful upward bias to the trading all day, fueled by the market’s current momentum and the continued flow of cash into stock mutual funds, which has dipped a little but is still positive, said Eric Miller, Donaldson, Lufkin & Jenrette’s market strategist.

“There is a perceived demand by most fund investors that they have to stay fully invested” in order to participate in the market’s gains. “They can’t build cash, and if they sell something they have to buy something else.”

Some of the stocks that moved substantially Friday:

NYSE

Estee Lauder Cos., closed at 34-1/2, up from an original pricing of 26.

The family-controlled New York cosmetics concern went public with an initial offering of 15.3 million shares, increased from 13.9 million, priced at $26 per share.

Hewlett-Packard Co. fell 4-3/4 to 88-1/2.

The computer maker’s fourth-quarter profit jumped 42 percent, to $1.29 per share from 92 cents a year ago. But Chief Executive Officer Lewis Platt warned of continuing pressure on expenses, and the company’s profit margins have been squeezed as lower-cost personal computers have produced a bigger portion of the company’s earnings.

Time Warner rose 1-3/8 to 39-3/4.

In a major shuffling of top entertainment personnel, the company ousted Michael Fuchs from his job as head of the troubled Warner Music group, replacing him with the company’s senior film executives, Warner Bros. co-chairmen Robert Daly and Terry Semel.

GTE Corp. rose 1-1/2 to 42-1/8.

The Stamford, Conn. local telephone and cellular provider said earnings-per-share should grow at least 10 percent a year “for the foreseeable future,” and revenues should grow between 6 and 8 percent annually. In the year ended Dec. 31, 1994, GTE reported operating earnings of $2.38 a share, up 8% from operating earnings of $2.20 a share in 1993.

Texas Instruments Inc. fell 2-3/8 to 59-3/4.

The Dallas technology company acquired Savi Technology Inc., a wireless communications company located in Mountain View, Calif., for an undisclosed sum.

NASDAQ

Computer Concepts Corp. rose 1/16 to 2-1/16.

The Bohemia, N.Y., company said it plans to enter the Internet products arena with a directory assistance service.

Lafayette Industries rose 1 to 3-1/2.

Earnings for the quarter ending Sept. 30 were 26 cents, up from 9 cents a year ago.