(MONEY Magazine) – Atlanta was the U.S. city with the best-performing local stocks in the second quarter of 1994, according to the exclusive Money/ Nordby Cities Index, which is composed of a series of indexes of stocks of companies that have headquarters in 24 metropolitan areas. The city's 3.8% gain for the quarter was four percentage points higher than that of Standard & Poor's 500-stock index, which dipped 0.3%. Atlanta shot to the top spot from 21st place in the first quarter. Chicago took second place with a 3.5% gain, up from 16th, and Seattle came in third with 2.2%, up from ninth. By contrast, Los Angeles, No. 1 in the previous quarter, sank to last place with a 9.6% loss. Atlanta's first-place finish was the result of double-digit gains by two stocks: Scientific-Atlanta, with $770 million in sales, jumped 25.9% on strong demand for its satellite and data communications equipment; and $1.3 billion credit reporting agency Equifax rose 19% as banks issuing credit cards ordered 20% more credit reports. Chicago ranked second on the strength of three double-digit gainers. General Instrument, a $1.6 billion cable-television-equipment manufacturer rose 20% because of strong demand for its advanced set-top devices. Inland Steel Industries, $4.6 billion, gained 15.8% as steel prices edged up 5%. Sears Roebuck, the $55 billion retailer, advanced 11.3% on strong sales of high- margin apparel. Seattle took third place, owing largely to two stocks: Software giant Microsoft, $4.6 billion, rose 21.5% as sales of its Windows program continued at 2 million copies a month; John Fluke Manufacturing, $350 million, moved up 10.8% on brisk sales of a new group of electrical measurement and metering products. The worst-performing city was Los Angeles, whose 9.6% loss more than offset its 7.3% gain in the first quarter. Ten of L.A.'s 12 stocks declined; the biggest loss was the 34.6% fall suffered by $2.2 billion Broadway Stores, formerly known as Carter Hawley Hale Stores. Sales dropped 10% in May as four stores remained closed because of damage caused by the January earthquake. Fast-food restaurant chain Carl Karcher Enterprises, $490 million, fell 29.9% in the second quarter as investors took profits. The stock had gained 75% over the previous six months after the chain won most of the California franchise rights for Boston Chicken. The MONEY/Nordby Cities Index is composed of 12 leading stocks from each of the 24 metropolitan areas -- 288 stocks in all. The Index tracks only price changes, not dividends, and the stocks in each city index are equally weighted.

CHART: NOT AVAILABLE CREDIT: Source: Nordby International CAPTION: HOW 24 U.S. CITIES RANKED