Newspaper article THE JOURNAL RECORD

Positive Earnings Reports Help Industrials Reach Record High

Newspaper article THE JOURNAL RECORD

Positive Earnings Reports Help Industrials Reach Record High

Article excerpt

NEW YORK (AP) - The earnings-driven market was alive and well Tuesday as prices on Wall Street closed sharply higher in response to positive second quarter reports.

The Dow Jones average of 30 industrials reached another record close, climbing 28.38 points to 2,481.35. The previous closing high, reached July 8, was 2,463.97. The Dow was up 14.19 that day.

Advancers outpaced decliners Tuesday by a margin of about 11-to-6, with 1,005 stocks up, 550 down and 426 unchanged on the New York Stock Exchange.

Big Board volume totaled 185.85 million shares, against 152.46 million in the previous session.

``Earnings reports have been in line or better than projected and this has given the market a boost,'' said Michael Metz, an analyst with Oppenheimer & Co.

The market picked up steam on profits reported Monday and Tuesday by several computer companies, including Apple, Intel and NCR, said Lawrence Wachtel, a market strategist with Prudential-Bache Securities Inc.

However, analysts said the market shrugged off disppointing results from IBM, which said Tuesday its profit fell 9.8 percent from its level of a year earlier.

The decline was less than expected by most analysts, but Big Blue stock - which reached new levels in the previous session - fell because the market had expected more positive results.

``The bullish factor is that the setback in IBM has not affected other technology stocks or the market as a whole,'' Metz said.

IBM was sharply lower, closing down 2 3/8 at 167 1/2. However, Digital Equipment was up 2 1/2 to 166 1/8, Texas Instruments rose 2 1/2 to 62 3/4 and Data General jumped 1 1/4 to 31 1/2.

Auto stocks also did well. ``The feeling is the low point in sales may be behind and maybe they'll have a better second half,'' Metz said. …

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