Closing Market Report

Star-Bulletin news services

Friday, August 16, 1996


Dow up 23.67 on homes report

NEW YORK - Stocks advanced broadly today as the latest signs of a moderating economy helped the bond market, but a troubling earnings report in the computer industry pulled the technology sector lower late in the day.

The Dow Jones industrial average added about 23.67 points to close at 5,689.45, leaving the blue-chip measure with a gain of about 8 points on the week .

Advancers led decliners by a 2-to-1 margin on the New York Stock Exchange, with 1,577 up, 781 down and 813 unchanged. NYSE volume was 333.27 million shares, vs. 322.85 million yesterday.

The NYSE's composite index rose 1.74 to 355.96; The Standard & Poor's 500 index rose 2.93 to 665.21; The Nasdaq index fell 1.04 to 1,133.65; and the American Stock Exchange index rose 3.61 at 556.14.

Bonds posted strong gains, sending long-term interest rates lower, after the Commerce Department reported that construction of new homes and apartments fell 1.3 percent in July to the lowest level in four months.

Technology shares were firm until late in the session despite Hewlett-Packard Co.'s 26 percent drop in third-quarter profit, reported late yesterday, and a warning that some profitability problems could continue.

It was Hewlett-Packard's warning last month about slowing growth that served as a key ingredient in July's sharp market slide, climaxing a barrage of bad news from computer-related businesses. But a subsequent barrage of healthy profit reports from other technology bellwethers has helped soothe worries.




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