FINANCIAL MARKETS : Dow Dips 1.04 as Other Indexes Hit New Highs
Most stocks inched higher Wednesday in fitful trading, but the Dow Jones industrial average ended marginally lower one day after breaking the 4,200 barrier.
The blue-chip barometer dipped 12 points in early trading, rallied to a net gain of 9, then drifted lower as trading waned. It finished with a loss of 1.04 points at 4,200.57.
However, the New York Stock Exchange composite index broke through a record high set Tuesday, rising 0.19 point to 273.48. The Standard & Poor’s 500-stock index also closed at a new record, rising 0.32 point to 505.56.
The Nasdaq composite index added 2.60 points to 816.32, and the American Stock Exchange’s market value index advanced 0.55 point to 467.85.
In the broader market, advancing issues led declines 1,178 to 977.
Stocks were consolidating after some impressive runs tied to end-of-the-quarter window dressing last week, a reference to purchases by professional money managers to embellish their portfolios.
On Tuesday, the Dow industrials climbed 33 points to close at a record high of 4,201.61. That was the 15th record high since Feb. 15, putting the average up more than 500 points since Dec. 8.
Big Board volume was moderately heavy at 37.56 million shares, down from 330.58 million on Tuesday.
Stocks held their own despite a second failed attempt this week by the Federal Reserve Board to bolster the flagging dollar. The dollar got a temporary lift in late morning, after the Fed bought dollars. But it quickly gave back its gains, closing in New York at 86.04 Japanese yen and 1.373 German marks, down from 86.21 yen and 1.379 marks on Tuesday.
The currency intervention pushed bond yields slightly lower. The Treasury’s key 30-year bond yield fell to 7.36% from Tuesday’s 7.37%. Its price, which moves in the opposite direction, rose 3/32 point, or 94 cents per $1,000 invested.
In commodities trading, platinum futures prices soared 3% on news that Engelhard has developed a new type of platinum coating for car radiators and air-conditioning condensers that removes existing pollution from the air in addition to harmful gases emitted by automobile engines.
Platinum for April delivery rocketed $12.90 on the New York Merc to $461.60 an ounce, the highest daily settlement for near-term deliveries since Sept. 18, 1990. Engelhard surged 8 5/8 to 38.
April gold rose $1.70 to $394.70 an ounce; May silver leaped 10.8 cents to $5.405 an ounce.
Among Wednesday’s highlights:
* Investors were selective buyers in blue-chip stocks. Among them, Aluminum Co. of America rose 7/8 to 42 5/8 and Goodyear Tire & Rubber added 1 1/4 to 38 1/2.
* DuPont rose 1 5/8 to 63 1/4 amid reports that Seagram Co. is near a deal to sell its stake back to DuPont. Seagram rose 1/8 to 28 5/8.
* Pressure eased on high-technology stocks, which have recently been targeted by sellers. Micron Technology gained 7/8 to 75 1/8, Texas Instruments rose 2 to 91 and IBM added 1 to 84.
* Club Med jumped 5 to 27 5/8. Its parent, Club Mediterranee, said it plans to buy the remainder of Club Med shares it does not already own and withdraw Club Med Inc. shares from the NYSE.
* Nextel Communications gained 3 3/8 to 16 5/8 in heavy trading after saying Craig McCaw and his family agreed to invest up to $1.1 billion in the company.
* Convex Computer slipped 1 3/8 to 5 after saying its first-quarter results will fall below Wall Street estimates.
* Morrison Knudsen rose 1 1/4 to 9 3/8. The company is expected to secure a 60-day bridge loan of $125 million to avoid bankruptcy.
Overseas stocks were higher. Tokyo’s 225-share Nikkei average closed up 251.96 points at 15,882.49. In Frankfurt, the DAX 30-share average closed 4.83 points higher at 1,969.84. London’s FTSE-100 average was up 2.1 points at 3,190.2.
Mexico City’s Bolsa index closed 13.14 points higher at 1,919.09.
