Dow Advances, Broad Market Closes Lower

Stocks ended mixed but mostly lower Monday, as the lift in blue chips from the latest bank mega-deal failed to rally the broad market.

The Dow Jones industrial average ended up 17.44 points at 9,012.30, closing above the 9,000 level for the second time ever, after shaking off an early loss of nearly 70 points.

But losers topped winners by 17 to 13 on the New York Stock Exchange and by 23 to 19 on Nasdaq in relatively subdued post-holiday trading.

The Standard & Poor’s 500 index eased less than 1 point, while the Nasdaq composite gained 4.71 points to 1,824.95.

Despite strength in financial stocks, the market overall was dampened by rising bond yields.

The bond market weakened amid concern that Japan, one of the largest foreign investors in Treasury debt, is selling some holdings to help support the battered yen.

The Federal Reserve Board said it sold Treasury bills on behalf of an undisclosed customer. Traders, who said the sales amounted to about $12 billion, speculated the seller was the Bank of Japan, which last week sold dollars to boost the yen.

On Monday, however, the dollar turned around, rising to 129.60 yen in New York, up from 128.69 on Friday.

But the bond market didn’t get a boost from the dollar’s gain. The 30-year Treasury bond yield rose to 5.92% from 5.88% on Thursday. (U.S. markets were closed Friday in observance of Good Friday.)

On Wall Street, blue chips were hit by profit-taking at midday, after the Dow jumped 103 points Thursday.

“I think the market continues to be both excited and have indigestion with mega-bank mergers, while at the same time having some apprehension toward first-quarter earnings,� said Tom Galvin, chief investment officer at Donaldson, Lufkin & Jenrette.

A horde of major companies will report quarterly results this week.

The big news Monday was the $62.5-billion stock swap between BankAmerica and NationsBank and the $29-billion merger pact between Banc One and First Chicago NBD.

Just one week ago, the historic $70-billion merger deal between Citicorp and Travelers Group shook the market and set off rampant speculation about who would be next.

Among Monday’s highlights:

* BankAmerica jumped $4.63 to $91.13 and NationsBank gained $4.19 to $80.63 on news of their deal, while First Chicago rose $2.25 to $96.25. Banc One was unchanged at $61.75.

Among other banks, J.P. Morgan soared $7.06 to $147.63 on expectations that it, too, will sell out. Other winners included Chase Manhattan, up $4.75 to $146.38; Wells Fargo, up $18.81 to $370.94; BankBoston, up $3.50 to $116; Wachovia, up $3.75 to $88.25; Bankers Trust, up $5.19 to $133.69; PNC Bank, up $3.56 to $64.69; and Mellon Bank, up $3.94 to $73.

Many smaller California bank shares also rose.

* Brokerages were boosted by first-quarter earnings and by merger talk.

* Eastman Kodak helped boost the Dow, rising $2.94 to $67. It is expected to report first-quarter earnings today of 70 cents a diluted share, based on the average estimate of nine analysts surveyed by IBES International Inc. It earned 82 cents a share a year ago.

* Gillette gained $3.69 to $124.38. The company today will reveal a new shaving system, in what it says is its biggest new product launch ever.

* Among sectors hit by selling Monday were energy, drugs and utilities. The Dow utility index sank 0.9%.

Overseas, Tokyo’s Nikkei-225 stock average fell 1%. European markets were closed for a post-Easter holiday.