Dow Up, Market Mixed Amid Heavy Trading
Trading volume soared again on Thursday amid wild market cross-currents, leaving key stock indexes mixed and many traders shaking their heads in wonder.
The Dow industrials set yet another record high, adding 51.06 points, or 0.5%, to 10,462.72 after a midday slump.
But profit-taking in drug, financial and other sectors hurt the Standard & Poor’s 500 index, which eased 0.4%.
Meanwhile, a rebound in some tech names helped the Nasdaq composite index recover from a 64-point drop to end up 14.49 points, or 0.6%, at 2,521.77.
By the end of the day, the market’s gyrations resulted in New York Stock Exchange volume of 1.08 billion shares, the fourth-heaviest trading in history.
Nasdaq volume, at 1.24 billion shares, slowed somewhat from Wednesday’s record of 1.42 billion shares.
The major market trend continues to be the shift into heavy-industry stocks that would benefit from a stronger global economy.
Big winners on Thursday included Goodyear, up $3 to $56.75; AlliedSignal, up $2.81 to $56.13; and United Technologies, up $4.06 to $141.50.
On the flip side, many technology and Internet stocks ended lower again.
Tech stocks “had gotten so far out in front they had to come back, and with hopes that the global economy is turning, people are putting their money into cyclicals [industrial stocks],” said Arthur Micheletti, chief investment strategist at Bailard, Biehl & Kaiser.
Still, some tech issues pulled up in late trading. Microsoft, which fell as low as $83.88, ended up $3 at $88.88.
The heavy trading volume surprised many experts. Extraordinary volume often occurs at the beginning of major market moves -- and also at the end of such moves.
The market overall was higher, with winners topping losers by 18 to 13 on the NYSE. They were nearly evenly matched on Nasdaq.
“The market is broadening,” said Stanley Nabi, chief investment officer at DLJ Investment Management, which oversees $19 billion.
Indeed, the S&P; index of 600 smaller stocks was up 0.5%, its fifth straight advance.
Among Thursday’s highlights:
* Industrial stocks rising sharply included Ingersoll-Rand, up $2.50 to $62.56; Illinois Tool Works, up $5.44 to $72.69; PPG Industries, up $4.94 to $58.88; and Kennametal, up $1.44 to $21.50.
* The Morgan Stanley cyclical stock index has gained 10.7% so far this week, putting it on course to post its biggest weekly gain since it rose 12% in August 1984.
* Oil stocks rocketed after Iran said it would join other major oil exporters in cutting production to boost prices. Exxon surged $3.38 to $77.56, Chevron rocketed $4.63 to $95.75 and BP Amoco gained $5.63 to $105.
Crude oil futures for May rose 40 cents to $16.87 a barrel.
Oil’s gain helped power stocks in Mexico -- a major oil exporter -- up 3.6% to a record 5,490.62.
* Boeing led defense stocks higher after reporting stronger-than-expected earnings. The stock leaped $3.69 to $41.69. Also higher were Litton, up $3.75 to $61.75, and Northrop Grumman, up $1.75 to $63.13.
* On the downside, Pfizer led drug shares lower for a second day, falling $14.63 to $130 after warning of weaker near-term earnings growth. Also lower: Bristol-Myers, down $3 to $61.63, and Pharmacia Upjohn, down $3.31 to $59.
* The Internet sector was mixed, with America Online sliding $7 to $143, and Inktomi down $17.81 to $119.19, while Yahoo added $3.63 to $194.63 and Ebay gained $16 to $178.88.
* Charles Schwab led brokerage stocks lower despite reporting first-quarter earnings that beat analysts’ expectations by a penny a share. The stock slid $14.25 to $124 after recently soaring to $155.
* Morgan Stanley lost $5 to $104.75 and Ameritrade slid $11.38 to $136.63.
