Worries About Oil Prices Hold Dow In Check

Technology stocks boosted the broad market to new records Thursday, but worries that oil prices will fall if Iraq resumes oil shipments limited the Dow Jones industrial average to a slight gain.

The Dow industrials edged up 1.81 points to close at 5,551.74 after meandering throughout a relatively calm session largely dominated by reactions to corporate earnings news.

Broader-market measures - with a heavier weighting of technology shares - advanced more sharply as key industry issues resumed their market leadership after a one-day interruption.

The Nasdaq composite index, the American Stock Exchange market value index, and the Russell 2,000 list of smaller companies all set new records.

Advancing issues outnumbered decliners by about 9 to 7 on the New York Stock Exchange, where volume totaled 410.90 million shares as of 4 p.m., down from Wednesday’s pace.

Oil stocks weighed down the Dow industrials with Exxon, Chevron and Texaco among the blue-chip average’s top losers. Analysts said the uncertain outcome of U.N. talks to allow some Iraqi oil shipments continues to rattle energy stocks, which could see lower profits if increasing crude supplies cause prices to fall.

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

NYSE

Sears, Roebuck, down 1/2 to 51-3/4.

The nation’s second-largest retailer said its first-quarter earnings rose 21.8 percent to $151 million, or 36 cents a share, slightly exceeding forecasts, due in part to strong sales of clothing and big-ticket items during an early Easter shopping season. Sears also reported increasing problems with customer credit.

Rite Aid, up 3/8 to 31.

Revco, up 1/8 to 26-7/8.

Claiming the deal will drive up the price of prescription drugs in nine states, the Federal Trade Commission said Wednesday it will sue to block Rite Aid from buying pharmacy chain rival Revco D.S. for $1.8 billion. Despite the announcement, Rite Aid said it still hopes to reach a settlement with the FTC that will allow the merger.

Burlington Northern Santa Fe, up 2 to 84-1/2.

The company agreed to buy Washington Central Railroad for about $40 million in stock and cash and said it will buy 150 locomotives from General Electric for about $200 million. The purchase of Washington Central will add two Washington segments to Burlington Northern’s rail network.

NASDAQ

Apple Computer, down 1/2 to 24-3/4.

The company on Wednesday reported its worst quarterly performance - a $740 million loss on sinking sales and profit margins - and said it will lay off 1,500 more employees over the next year.