Broad Market Mixed; Nasdaq Sets New High

Wall Street ended the week on a mixed note, with most key indexes rising but the majority of stocks losing ground.

Investors shunned industrial issues in favor of consumer goods companies that are expected to report robust profits this month.

In a seesaw session, the Dow Jones industrials gained 15.96 points to 9,105.74 on Friday after falling 60 points early in the day.

The Nasdaq composite index, boosted again by major tech stocks, inched up 3.22 points to a record 1,943.04.

But losers topped winners by 1,599 to 1,326 on the New York Stock Exchange and by 2,179 to 1,865 on Nasdaq.

For the week the Dow rose 0.9% and the Nasdaq index jumped 2.6%. But the Russell 2,000 index of smaller stocks ended just barely higher than a week earlier.

Stocks opened higher Friday amid news that inflation remained tame in June, but quickly turned lower as some investors focused on the potential for disappointing second-quarter corporate earnings reports in coming weeks.

A plunge in Asian stock markets on Friday also worried some investors. Tokyo’s main index dove 2.2%, while Singapore’s market sank 1.2% and Hong Kong slumped 2.7%.

Japan holds elections on Sunday. A poor showing by Japan’s ruling Liberal Democratic Party could force Prime Minister Ryutaro Hashimoto out, throwing the country’s economic revival plans into doubt.

Still, the dollar edged lower against the yen on Friday.

Wall Street is also keeping an eye on events in Russia, which hopes to finalize financial packages with the International Monetary Fund and the World Bank this weekend to shore up its economy.

Russian stocks rose Friday for a second day, sending the RTS share index up almost 6% on expectations that Russia and the IMF will reach a deal.

Many European stock markets, however, were sharply lower. The French market sank 1.5% while the British market fell 0.7%.

Many analysts say earnings reports will be key for the U.S. market next week. This week, such names as General Electric and Alcoa reported surprisingly good results.

But DuPont shocked investors with a warning Thursday that results would be down sharply.

“The market rallied recently in hopes that maybe the negative earnings news was behind us, but DuPont reminded us yesterday that negative news still exists,” said strategist A. Marshall Acuff Jr. at Salomon Smith Barney.

The list of heavyweights set to report their results next week include Intel, J.P. Morgan, Johnson & Johnson, Ford and Kodak.

Among Friday’s highlights:

* Hunting for companies expected to report strong earnings, investors pushed big-name consumer issues higher. Coca-Cola rose 50 cents to $87.19, American Express gained $2.50 to $116.81, Gillette jumped $2.94 to $62.56 and Procter & Gamble gained $2.06 to $92.44.

* Many bank stocks also were higher, including U.S. Bancorp, up $1 to $46.06; Mellon Bank, up $1.50 to $74; and Citicorp, up $3 to $171.50.

* Technology stocks gaining included Microsoft, up $2.19 to $113.19; IBM, up $1.44 to $118.50; and Dell, up 94 centst to $100.81.

But after the close of trading, Applied Materials, a leading maker of semiconductor manufacturing equipment, said fiscal third-quarter results will fall below analyst forecasts, hurt by delayed orders and cutbacks in capital spending by chip makers.

The stock gained 50 cents to $29.50 before trading was halted.

* Recently hot Internet stocks continued to slide, including Excite, down 38 cents to $81.88; Yahoo, down $2.75 to $181.25; and Amazon.com, down $6 to $99.50.

* Industrial issues losing ground included DuPont, down $2 to $68.13; Alcoa, down $1.38 to $64.38; and USX-U.S. Steel, down 88 cents to $31.63.

* Retail stocks were mixed after falling Thursday despite generally favorable June sales reports. Wal-Mart rose $1.06 to $64.19 and Sears gained 63 cents to $59.94, but Nordstrom lost $1.38 to $36.13.

* Irvine-based HomeBase Inc. gained 94 cents, or 10%, to $10 on speculation Lowe’s Cos. will buy the building-supplies retailer for $14 a share, or about $530 million. HomeBase’s stock is up 29% since Wednesday.

* Adams Golf, a golf-club maker, rose $2.38 to $18.38 in its first day of trading after an initial public stock offering.

In commodity trading wheat prices dropped to the lowest level in seven years after the U.S. Agriculture Department forecast larger-than-expected supplies in coming months.

Wheat for July delivery ended 5 3/4 cents a bushel lower at $2.65 3/4 at the Chicago Board of Trade, the lowest closing price for wheat since July 1991.

Market Roundup, D4