Wall Street report: Thurs close

ANOTHER gut-wrenching ride on Wall Street left Blue Chips marginally in the red, while techs were black and blue from a battering of bad news.

The Dow Jones Industrial Average, which in the previous session had roared ahead almost 490 points in its best day since 1987, swung within a 360-point range before closing down just 4.98 points to 8186.31. The Nasdaq was hammered for a loss of 50.15 points or 3.89% to 1240.08, its lowest close since October 1996, on more gloomy news out of the semiconductor sector.

Hopes for a re-play of Wednesday's exuberance took a hit from figures out before the opening bell showing an unexpected dive in orders for durable goods - big ticket items including cars and aircraft. June's 3.8% decline contrasted with a rise of 0.6% in May and economists' forecasts of 0.5% for the latest month.

The National Association of Realtors added another cautionary note by reporting that sales of existing homes fell 11.7% in June, the biggest drop since 1995. A decline in jobless claims to a 17-month low failed to erase worries that the US economy, if not headed back into recession, was certainly seeing a slowing in the pace of its already modest recovery.

Also weighing on shares were company-specific stories responsible for a great deal of the day's volatility. Conglomerate Tyco International plunged $1.75 or 17.5% to $8.25, down from $60 in January, despite vigorously denying market rumors that it had hired lawyers to prepare a bankruptcy filing. The company said it had enough cash on hand to see it through November next year.

America's two biggest banks, Citigroup and JP Morgan Chase had a wild ride of their own on a Bloomberg News report that they were under investigation by the Securities and Exchange Commission over their dealings with collapsed energy trader Enron. Citigroup closed fractionally higher at $29.65 after earlier touching $27.10 and JP Morgan finished the day down 95 cents or 4% at $22.35.

The disclosure out after the close of markets on Wednesday from AOL Time Warner that its bookkeeping was the subject of a fact-finding inquiry by the watchdog Securities and Exchange Commission helped knock its shares for a loss of $1.76 or 15% to $9.64. At one point, AOL shares plunged to $9, their lowest level since September 1998. The shares were selling for $47.25 a year ago.

The bloodbath in techs was sparked by sudden pessimism at one of the major semiconductor houses. Computer chipmaker Taiwan Semiconductor plummeted $2.06 or 18% to $9.08 after it said a recovery in its business appeared to be stalling out.

Other chipmakers came down as well. Intel slumped $1.22 cents or 6.5% to $17.48. Microsoft, which told analysts that it would be adding another 5000 employees or 10% to its workforce and pursuing 'aggressive investments', dropped $3.40 or 7.4% to $44.46.

Appertising news came from the chocolate and beer sectors. Hershey, the maker of Hershey Chocolate Kisses and Reese's Peanut Butter Cups, said that the charitable trust that controls the company was exploring a sale. Analysts said the 108-year-old Pennsylvania company could attract a brace of bidders, including Nestle, Kraft, Cadbury-Schweppes and PepsiCo. Hershey shares flew $15.80 or 25% to $78.30.

Adolph Coors, the third biggest brewery which bought Britain's Carling for $1.7bn in February, attributed thirsty UK drinkers for stronger than expected profits.

'Our UK business continues to perform well and, as anticipated, has become an important contributor to strengthening and diversifying our total company's growth and profitability,' said chairman Peter Coors. Coors' shares leapt $4.21 or 8% to $57.08.