Wall Street Takes a Breather

Blue-chip stocks closed slightly lower today as the market looked tired following this week's spirited run to a series of record highs on Federal Reserve Chairman Alan Greenspan's comments about the economy. Based on early and unofficial data, the Dow Jones industrial average ended 3.49 points lower at 8,113.44, pausing after three straight record closes. In the broader market, advancing issues led declines by a thin margin on moderate volume of 516 million shares on the New York Stock Exchange. The Nasdaq index closed up 0.50 at 1569.63.

Columbia/HCA Executives Quit

Richard Scott resigned today as chairman of Columbia/HCA Healthcare, the giant for-profit hospital chain being investigated for alleged fraud by federal regulators. Resigning along with Scott, founder of the company, was President and Chief Operating Officer David Vandewater. Half a dozen federal agencies are probing the operations of Columbia/HCA, examining Medicare-billing practices, home health-care operations, recruitment of physicians, and other matters. Columbia stock was up 81.25 cents at $37 on the New York Stock Exchange.

U.S. Durable Goods Orders Rise

Orders for big-ticket manufactured goods posted their biggest jump in five months in June, reflecting strength across the board in the manufacturing sector, the Commerce Department said today. New orders for durable goods rose a stronger-than-expected 2.3 percent last month to a record $180.6 billion on a seasonally adjusted basis. They fell a revised 0.4 percent in May. The May decline previously was reported as 0.7 percent. Economists had expected durable orders to climb 1.4 percent in June. Last month's increase was the largest since a 3.4 percent jump in January.

GM, UAW Talks Resume

Bargainers sat down for more talks this morning to end a three-day old strike at a General Motors parts plant that is quickly rippling through the automaker's North American production operations. About 2,800 union members from UAW Local 909 walked off the job at the Warren, Mich., GM Powertrain Group plant at midnight Tuesday when talks failed to produce a new contract. The plant makes automatic transmissions for front-wheel drive vehicles, as well as wheels and suspension components. A shortage of parts has forced GM to suspend production at a total of six car assembly operations with nearly 17,000 hourly workers. GM's stock fell 81.25 cents to $57.50 on the New York Stock Exchange.

Boeing Shareholders OK Deal

Boeing shareholders today approved the $15 billion merger between the aerospace giant and McDonnell Douglas. More than 99 percent of voting shareholders approved the deal, the company said at a special meeting of shareholders. McDonnell Douglas shareholders are scheduled to vote on the merger at a separate meeting today. Boeing won European Union approval of its plan to acquire McDonnell Douglas earlier this week after making some concessions in an 11th-hour deal. Boeing has said it believes the concessions will have little if any impact on the increased profits it expects after the merger. Boeing has said shareholder approval will clear the way for the deal to close Aug. 1.

Silicon Graphics Shares Soar

The stock of Silicon Graphics gained 33 percent in value today after the computer workstation maker reported surprisingly strong fiscal fourth-quarter earnings. The Mountain View, Calif.-based company's stock rose $5.94 to $25.75 on the NYSE, where it was one of the most actively traded issues. The company, whose products are used in computer-intensive applications ranging from complex weather modeling to special effects in movies, issued an earnings report late yesterday that startled Wall Street after two years of shortfalls.

Earnings Forecasts May Rise

Prospects that the Federal Reserve will keep interest rates in check could lead bullish Wall Street analysts to boost their forecasts for U.S. corporate earnings in the second half of the year. Earnings estimate hikes would be further support to the surging U.S. stock market, which previously expected the Fed to boost rates several times in the second half of the year, cooling the economy and corporate profits, analysts say. Second-quarter operating earnings are up a better-than-expected 11.3 percent for the two-thirds of the Standard and Poor's 500 companies that have reported thus far, according to First Call, which tracks analyst estimates and earnings.

Aetna Names a New President

Aetna said today Richard Huber has been named president and chief executive officer of the company. Huber, 60, has been vice chairman of strategy and finance and a member of Aetna's board of directors. Ronald E. Compton will remain chairman of the Hartford, Conn.-based managed care and life insurer until his planned retirement date, which is at the end of February 1998. The board has not yet named a replacement for Compton as chairman. Huber's appointment as president and chief executive will be effective Monday. Aetna's stock was down $3.4375 at $111.625 on the New York Stock Exchange.

W.R. Grace Reports Lower Profits

Packaging and building materials manufacturer W.R. Grace & Co. today reported lower profits for the second quarter following a management restructuring launched in the period. Grace earned $117 million, or $1.61 a share, compared with $334 million, or $3.45 a share, in the year-ago quarter. Total revenues fell to $861 million from $935 million. However, excluding results from units divested in 1996 and 1997, sales increased nearly 5 percent to $836 million from $799 million. Grace's stock gained 43.75 cents today to $60.125 on the New York Stock Exchange.

Dana to Sell Unit

Dana Corp. said today it plans to sell the flat rubber products business of its Boston Weatherhead Division to Coltec Industries. No word on the pricetag of the sale. The action is the latest in a series of moves in 1997 to focus on its core businesses. The Toledo, Ohio-based company cites agreements to sell its transmission business, leaf spring manufacturing assets, global vehicular clutch business and hydraulic cylinder operations; and the sale of its U.S. heavy-truck structural component operation and European warehouses. Dana's stock was down 50 cents at $40.375 on the New York Stock Exchange.

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