Stocks posted slim gains Friday after some early weakness, but the buying was hesitant, with the market holding big gains before a crush of company profit reports.
The Dow Jones industrial average recovered from an early 60-point slide and closed 15.96 higher, at 9105.74, slightly more than 100 points from the May 13 record peak of 9211.84. The blue-chip index rose 80.48 for the week, bringing the year’s gain to nearly 1,200 points, or 15.1 percent.
Most broad-market indexes also turned higher, with the Nasdaq composite setting a record for the third straight day. But declining issues outnumbered advancers.
Stocks opened higher amid news that inflation remained tame in June, but they quickly turned lower amid concerns that the impending flood of profit reports might reveal that the recent big rebound was too optimistic. Analysts said investors also were hesitant about making big bets before Sunday’s Japanese elections.
Recent polls have revealed waning support for the current leadership, threatening to derail tax proposals seen as crucial to the sickly Japanese and Asian economies. In a jittery preface to Sunday’s election, Tokyo’s Nikkei stock average fell 2.2 percent.
Second-quarter reporting season began this week with strong showings from General Electric and Alcoa, but the mood soured Thursday, when DuPont warned that its latest results won’t meet Wall Street forecasts.
DuPont fell $2, to $68.12, as the Dow’s biggest decliner. The Dow’s strongest components Friday were American Express, up $2.50, to $116.81; Procter & Gamble, up $2.06, to $92.44; IBM, up $1.44, to $118.50, and J.P. Morgan, up $1.44, to $125.94.
The Standard & Poor’s 500-stock index rose 5.77, to 1164.33, just below Wednesday’s closing record of 1166.38. For the year, the S&P 500 is up 20 percent.
The technology-heavy Nasdaq composite index rose 3.22, to 1943.04, extending its 1998 gain to 23.7 percent. But the Russell 2000 index of smaller companies fell 1.57, to 458.43, to end the week virtually unchanged.
For the week, the S&P rose 1.6 percent, and the Nasdaq gained 2.6 percent.
Among the once-sizzling Internet stocks, Amazon.com booked a $6 loss, to $99.50; America Online dropped $1.37, to $112.50; Lycos fell $3.31, to $67.62; Mindspring Enterprises gave up $1.94, to $91.69, and Yahoo shed $2.75, to $181.25.
Among shares of Illinois-based companies, Sundstrand rose $2.19, to $60.87, and Northern Trust added $2, to $81.25.
Schaumburg-based Damen Financial said it plans to repurchase up to 5 percent of its oustanding shares over the next six months. The company said it will use the repurchased shares for general corporate purposes, including the issuance of shares for stock options. The bank holding company has 3.1 million shares outstanding.
The stock last traded Wednesday, when it closed at $16.25 on volume of 26,500 shares.
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