Most Stocks Fall; Dow Drops 85.19
NEW YORK (AP) _ Technology shares lifted the Nasdaq market to another record, but most stocks fell today, with a profit warning from DuPont preventing an assault on new highs by the Dow industrials.
The Dow Jones industrial average fell 85.19 points to 9,089.78, giving back most of an 89-point gain from Wednesday that had left the blue-chip barometer less than 40 points below May 13′s record of 9,211.84.
The Standard & Poor’s 500, which on Wednesday closed at a record high for the sixth time in 10 sessions, fell 7.82 to 1,158.56. The Nasdaq composite index rose 4.50 to 1,939.89.
Declining issues outnumbered advancers by a 7-to-5 margin on the New York Stock Exchange, with 1,226 up, 1,716 down and 589 unchanged.
NYSE volume totaled 655.64 million shares as of 4 p.m., up from 605.37 million on Wednesday.
The NYSE composite index fell 4.12 from Wednesday’s closing record, finishing at 590.23.
The American Stock Exchange composite index fell 0.74 to 727.91.
The Russell 2000 index of smaller companies rose 0.03 to 460.00. V DuPont sank the equivalent of 28 points after the biochemical company advised that its second-quarter results won’t meet analyst expectations.
The warning overshadowed a solid second-quarter report from fellow Dow component General Electric, and weighed down other stocks that, like DuPont, are considered dependent on the health of the economy. Heavy equipment maker Caterpillar fell sharply as one of the Dow’s weakest issues.
The Dow was also hit hard by Chevron and Exxon, which have been battered by falling oil prices, as well as Sears Roebuck, which reported disappointing June sales.
Most broad-market indicators also surrendered a chunk of Wednesday’s gain, but the Nasdaq composite index set a new high for a second straight day as Dell Computer, Intel and Microsoft posted more big gains.
Likewise, Compaq computer rallied as the most active issue on the New York Stock Exchange and IBM rose sharply as the Dow’s biggest gainer.
Yahoo!, which topped forecasts with its quarterly report late Wednesday, also rose sharply in heavy Nasdaq trading.
Overseas, Tokyo’s Nikkei stock average fell 0.5 percent, Frankfurt’s DAX index fell 0.4 percent and London’s FT-SE 100 fell 0.7 percent.