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Sell program derails Dow
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March 2, 1998: 3:08 p.m. ET
Stocks turn lower in late trading after computer sell program kicks in
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NEW YORK (CNNfn) - Wall Street dipped into negative territory in late trading Monday after a large computer selling program was triggered and some investors opted to cash in on the market's strong gains in the past few sessions.
But losses were limited and stocks remained stuck in a narrow trading range.
Shortly before 3 p.m. the Dow Jones industrial average was 21.92 points lower at 8,523.80. On the New York Stock Exchange, gainers continued to lead losers 1,537 to 1,321 as 428 million shares were traded.
Broader markets also slipped, with the Nasdaq Composite down 7.57 to 1,762.94 and the S&P 500 off 2.38 to 1,046.96.
Bonds were sharply lower, ignoring a slightly lower-than-expected increase in personal income in January but taking a hit after the release of the National Association of Purchasing Management's February index. The NAPM index, a closely watched indicator of business activity, rose to 53.3, exceeding market expectations. The price of the benchmark 30-year Treasury bond tumbled 1-7/32 points, raising the yield to 6.01 percent.
The dollar started the day weaker, slipping against both the Japanese yen and the German mark amid speculation the government in Tokyo may soon unveil yet another, possibly more aggressive economic stimulus package. But the currency bounced back against the mark after the stronger-than-expected NAPM report.
Deals set the market's tone
In stocks, investors had more than enough news to trade on, with mergers in a number of industries topping the list.
Among the day's newsmakers, shares of Sunbeam Corp. (SOC) surged 4-1/16 to 45-13/16 after the household equipment maker announced it is buying three companies for a total of $2.5 billion. Among those being bought, shares of Coleman (CLN), a maker of outdoor recreation and hardware products, jumped 10-1/4, or more than 49 percent, to 31-1/8, Signature Brands (SIGB), a consumer product manufacturer, rose 2-3/4, or more than 52 percent, to 8, and First Alert (ALRT), a maker of household safety equipment like smoke alarms, gained 1-31/32, or 63 percent, to 5-3/32.
In another deal, shares of Wang Laboratories (WANG) rose 1-1/16 to 28-15/16 on news Wang is buying Olivetti SpA's computer services division in a $390 million deal that is expected to triple Wang's revenue.
And shares of Computer Sciences (CSC) bounced 3-3/16 to 107-7/8 after the computer systems integrator's board rejected a hostile $9.1 billion takeover offer from Computer Associates (CA) and said it would look at all alternatives to increase shareholder value, hinting Computer Sciences might consider selling itself to other bidders.
But the stock of Aetna (AET) lost 1-1/16 to 86-5/16 following press reports that the managed health care provider is negotiating the purchase of the health care unit of New York Life, a deal whose value is estimated at about $1 billion.
Shares of Handy & Harman (HNH) also fell 1-9/16 to 34-7/8 following news that the maker of electronic components will be bought by steel manufacturer WHX Corp. (WHX) for $645 million, including assumed debt and stock options. Shares of WHX rose 3/4 to 14-9/16. WHX is paying $35.25 a share for Handy & Harman.
Also on the losing side, the stock of Teradyne (TER), a maker of electronic test systems, tumbled 6-1/16, or almost 13 percent, to 41-1/8, after a Deutsche Morgan Grenfell analyst lowered his 1998 earnings estimate for the company because of lower orders the company faces in the first quarter. Teradyne was the second most actively traded stock and the leading net loser on the NYSE.
Elsewhere, technology stocks, which had attracted buyers in the morning, also declined in late trading. Among the leaders, Dell Computer (DELL) eased 1/8 to 139-3/4, Intel (INTC) was down 1-1/8 to 88-9/16 and Microsoft (MSFT) fell 1-1/16 to 83-11/16. Separately, the software giant said it is revising its agreements with Internet service providers to allow them to promote browser software from Microsoft's competitors. This development is taking place just before Microsoft's chairman, Bill Gates, testifies before the Senate Judiciary Committee as part of a computer industry panel. 
-- by staff writer Malina Poshtova Zang
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