Dow Inches Up 5.72 To Close at 8,018.83By BRUCE MEYERSON
Dec. 03, 1997
NEW YORK (AP) _ Technology shares were pounded by profit worries Tuesday, but the broad stock market was little changed as investors hesitated to move back into record territory following Monday's big rally.
The Dow Jones industrial average rose 5.72 to 8,018.83, edging higher just before the close. The Dow, which jumped nearly 190 points on Monday in its first close above 8,000 since October's steep slide, never strayed more than 30 points in either direction Tuesday.
Most broad-market indexes drifted lower, but advancing issues outnumbered decliners by a 6-to-5 margin on the New York Stock Exchange. Analysts said it was a reasonable to see the market pause after Monday's powerful advance, which put some stock measures within easy reach of record levels.
``People want to worry about the market. It's very richly valued and it's hard to make a case for it to go substantially higher,'' said Richard E. Cripps, chief market strategist for Baltimore-based Legg Mason.
The most decisive action came on the technology-laden Nasdaq Stock Market, where decliners ruled the day by a 3-to-2 margin and the composite index fell 24.35, or 1.5 percent, to 1,606.37.
Computer-related shares, which helped lead Monday's rally, were weighed down by profit warnings from Cabletron Systems, Western Digital and Altera, as well as reports that an influential Merrill Lynch analyst expects the semiconductor industry to struggle next year.
Cabletron, a computer-networking concern, slid 7 1/2 to 15 11/16 as the most active NYSE issue, and disk-drive maker Western Digital fell 1 3/4 to 19 3/8, also on the NYSE. Altera, a semiconductor manufacturer, fell 10 15/16 to 40 3/4 in active Nasdaq trading.
``Those three companies are from different parts of the technology spectrum and they're saying the same things,'' said Cripps. ``The comments that greeted us this morning have created a concern that will need to be watched.''
Among leading technology issues, Intel gave back nearly all of Monday's gains, falling 3 7/16 to 78 1/16. IBM fell 1 13/16 to 110 3/4 and Hewlett-Packard fell 1 1/16 to 61 11/16 as two of the Dow's weaker components.
The Dow's strongest issues were Caterpillar, up 1 7/8 to 50 15/16, and Coca-Cola, which rose 1 5/16 to 65 7/8 after an upgrade by Merrill Lynch.
NYSE volume totaled 575.29 million shares as of 4 p.m., down slightly from Monday's busy pace.
The Standard & Poor's 500-stock list fell 3.10 to 971.68, and the NYSE composite index slipped 0.09 to 507.64.
The Russell 2000 index of smaller companies fell 1.68 to 432.48, but the small-company dominated American Stock Exchange composite index rose 1.57 to 665.70.
In contrast to recent days, there few developments in the Asian financial crisis for the U.S. market to address. Signs of progress in resolving the fiscal woes of Japan and South Korea had helped feed Monday's rally on Wall Street.
Overseas, Tokyo's Nikkei stock average fell 0.6 percent after a four-session rally. Frankfurt's DAX index rose 0.1 percent and London's FT-SE 100 rose 1.1 percent.