Stocks Mixed; Dollar Hits 2-Year Highs

The Dow Jones industrial average eked out its fifth record of the year Monday, but bonds fell as investors braced for a round of new economic data.

The dollar rose to two-year highs against most European currencies amid supportive comments from German and U.S. officials.

The 30-stock Dow index rose 5.39 points to 6,709.18, surpassing Friday’s record finish of 6,703.79. Broader measures were little changed.

The market also was devoid of the volatility that has marked trading since the start of the year.

J.P. Morgan was the strongest performer among Dow components, rising 2 3/4 to 102 1/2 after reporting stronger-than-expected fourth-quarter earnings.

The bank’s results triggered a rally in financial shares, but analysts said activity appeared restrained ahead of today’s release of consumer price index data for December.

Elsewhere, the market was noticeably muted and stocks held to fairly tight ranges. They got little help from bonds as the benchmark 30-year Treasury bond slipped slightly, leaving its yield unchanged at Friday’s close of 6.85%, which was up from 6.75% on Thursday.

Despite the recent rise in interest rates, some analysts saw reason for optimism.

“What stuck out more than anything were the utilities, where we saw some buying,” said Richard Cripps, chief market strategist at Legg Mason Wood Walker.

In New York, the dollar rose to 1.5925 German marks, its highest level since August 1994, before dropping to 1.5883 later. It was at 1.5859 marks on Friday.

The dollar climbed to 1.3796 Swiss francs, its highest level since May 1994, before ending at 1.3765. It had closed lower at 1.3760 Swiss francs on Friday.

The dollar cost 116.44 Japanese yen, up from 116.06 on Friday.

Advancing issues outnumbered decliners by a 7-6 margin on the NYSE.

The Standard & Poor’s 500-stock index rose 0.03 point to a record 759.53, but the NYSE composite index slipped 0.05 point from Friday’s record finish, closing at 400.71.

The Nasdaq composite index, which also set a record Friday, fell 1.09 points to 1,330.93. The American Stock Exchange composite index rose 0.09 point to 586.13.

Among Monday’s highlights:

* A number of financial stocks rose along with J.P. Morgan, including First Union, which announced a $1.89-billion, 25-million-share buyback, up 1 7/8 to 77 3/8.

Barnett Banks rose 1/4 to 40 7/8 after reporting on-target fourth-quarter results, and NationsBank, which reported better-than-expected quarterly profit, initially gained 1/2, then fell 3/8 to 102 7/8 after announcing that 1997 earnings will be lower than previously predicted as a result of its $9.78-billion acquisition of Boatmen’s Bancshares Inc.

* Intel jumped 2 3/8 to 146 7/8, another closing high, amid speculation that it may report higher-than-expected earnings today.

Rival chip maker Advanced Micro Devices gained 2 to 29 3/4 after the company released a new microprocessor on par with some of Intel’s Pentium lines of chips.

* American Standard gained 3 to 43 1/4 after the maker of Trane air conditioners and plumbing fixtures rejected a $50-a-share offer from Tyco International, which rose 1/2 to 55 1/8 after the company said it wouldn’t pursue a hostile takeover.

* Oil prices sank after forecasts of warmer temperatures in the Northeast, the world’s largest heating oil market, triggered a sell-off in the fuel. On the New York Mercantile Exchange, February heating oil closed down a sharp 2.45 cents a gallon at 69.70 cents.

Mobil dropped 2 1/2 to 127 5/8 and Anadarko Petroleum fell 1 3/8 to 70 7/8; Chevron slid 1 3/8 to 68 1/8 and Texaco slipped 1 7/8 to 105 1/2. Chemical maker DuPont, which owns oil refiner Conoco, backtracked 1 3/8 to 104 5/8.

Overseas, in Tokyo, the Nikkei-225 index soared 815.14 points to finish at 18,118.79. London’s FTSE-100 index closed at the day’s best level, up 50.7 points at 4,107.3, and within reach of its Dec. 31 high of 4,118.5.