Profit Worries Extend Dow’s Slide

The fourth-quarter profit reports remained generally strong Thursday, but stocks pulled back again as big names such as Microsoft, Texaco and Sears joined the list of companies expressing concern about 1998.

The Dow Jones industrial average fell 63.52 to 7,730.88, extending Wednesday’s 78-point slide.

Broader stock indicators also fell for the second straight session despite some solid profit reports from Dow components General Electric and United Technologies, as well as late Wednesday’s robust showing by Microsoft.

The main culprit, again, was the mounting uncertainty about the economic crisis in Asia and how much it will hurt U.S. companies in this quarter and all of 1998.

Complicating matters on Thursday, however, were separate warnings about issues such as bad consumer debt and falling oil prices, as well as worries about the fallout from allegations President Clinton had an affair with a young White House intern and asked her to lie about it.

Declining issues outnumbered advancers by nearly a 5-to-3 margin on the New York Stock Exchange, where volume continued at the hectic pace seen most of the new year.

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

NYSE

General Electric, down 3/8 at 75-3/16.

The conglomerate reported that its fourth-quarter earnings rose 14 percent, led by strength in its financial services division and increased sales of aircraft parts. The earnings were roughly in line with analyst expectations.

Sears Roebuck, down 7/8 at 45-1/16.

The retailer reported that its fourth-quarter earnings fell 5.5 percent as it sharply increased its provision for bad consumer debt. The results were slightly better than expectations, but the retailer also warned its first-quarter earnings would be well below year-ago levels.

United Technologies, up 3 at 74-5/8.

The industrial conglomerate exceeded forecasts with a 7 percent improvement in fourth-quarter profits, led by revenue growth at jet-engine maker Pratt & Whitney.

NASDAQ

Microsoft, up 1-5/8 at 138-5/8.

The software giant reported late Wednesday that its profit rose 52 percent in the final three months of 1997, helped by continued strong computer sales. Microsoft cautioned, however, that it is starting to feel the effects of the Asian financial crisis.

Sybase, down 1-59/64 at 7-49/64.

The maker of network software disclosed that its fourth-quarter revenues will be lowered by $60 million to $65 million because of improper revenue recognition by its Japan unit.