Dow Sets New High; Broader Market Mixed : Market Overview

* A late rally in stocks sensitive to economic strength boosted the Dow industrials to a new high Monday, but the broader market closed mixed for a sixth consecutive session.

* Oil prices tumbled again, but the slump didn’t help bond yields, which inched up in thin trading.

Stocks

The Dow followed Friday’s record close with a new one, adding 23.76 points to 3,764.43.

But losers topped winners on both the New York Stock Exchange and the Nasdaq market, and small-stock indexes were mostly lower.

The Nasdaq composite index fell 1.02 points to 759.72, its sixth straight loss. The Russell 2,000 index eased 0.58 point to 252.23.

Analysts said the continuing divergence in performance of the blue-chip Dow and the rest of the market is troubling, because it suggests interest in stocks is narrowing. Also, trading volume is slowing, totaling just 256.6 million shares on the NYSE on Monday.

The Dow stocks appear to be benefiting from money managers’ desire to load up on industrial issues now that the economy is gaining steam.

In addition, some traders say leading industrial stocks are moving up in anticipation of a successful conclusion of world trade talks this week. A victory in talks on the General Agreement on Tariffs and Trade could, in theory, sharply boost world trade over the next decade by opening markets around the globe.

Monday’s late rally was also fueled by computer-driven trading, which tends to concentrate on big-name stocks.

Among the market highlights:

* IBM, a Dow component stock, soared 2 1/8 to 57 3/8 after it agreed to sell its huge Federal Systems unit to Loral. Investors have been encouraged by IBM’s willingness to refocus itself after three years of heavy losses.

Loral, meanwhile, rocketed 2 3/4 to a record 35. Other defense issues gaining included Boeing, up 1 1/8 to 41 1/8; General Dynamics, up 1 1/4 to 93; Martin Marietta, up 1 1/4 to 43 1/4; Litton, up 1 7/8 to 65 5/8, and E-Systems, up 3/4 to 43.

* Other industrial names giving the Dow a boost included Alcoa, up 1 1/4 to 73 5/8; DuPont, up 1 1/8 to 48 3/8; International Paper, up 1 to 68; 3M, up 2 7/8 to 110 7/8, and Union Carbide, up 3/4 to 22 3/8.

* Also among industrials, Cummins Engine shot up 3 1/8 to 54 1/8, Phelps Dodge added 1 to 49 3/4, nickel miner Inco gained 1 to 27 5/8, PPG Industries rose 1 to 73 1/4, PACCAR was up 3/4 to 63 1/4 and Cooper Tire rose 1/2 to 23 3/8.

* Technology stocks were mixed after last week’s drubbing. Intel rose 1 1/4 to 57 1/2, Lotus zoomed 1 3/4 to 53 1/2 and Compaq gained 1 1/8 to 72 3/8, but Autodesk fell 2 to 41 1/4 and Microsoft eased 1/2 to 81 3/8.

Also, interactive technology firm 3DO tumbled 3 3/4 to 24 1/2. CNBC-TV’s Dan Dorfman quoted analysts as saying that 3DO faces tough competition.

* Among the day’s big losers, retailer Circuit City slid 1 3/4 to 21 1/4 after reporting third-quarter earnings of 20 cents a share, up from 17 cents a year ago but below Wall Street estimates.

* Also, Procyte plummeted 4 5/8 to 10 7/8. The firm said the Food and Drug Administration has directed it to halt studies of a foot ulcer treatment because seven diabetic patients involved have died.

* Cobra Industries, a maker of recreational vehicles, plunged 3 7/8 to 7 7/8. The firm expects a third-quarter loss because of what it called a temporary sales slump.

In foreign markets, Frankfurt’s DAX index gained 11.62 points to 2,172.50, while London’s FTSE-100 index eased 6.7 points to 3,254.6.

In Tokyo, the Nikkei-225 added 67.90 points to 17,327.33, continuing to stabilize.

In Taipei, meanwhile, stocks zoomed to an eight-month high, helped by a strong inflow of foreign capital. The Taiwan Stock Exchange Weighted Index, which soared 107.55 points Saturday, surged 178.23 points to 4,929.81, the highest level since April 7.

In Mexico City, the Bolsa index inched up 2.26 points to 2,411.61.

Other Markets

Oil prices plunged again on more signs that OPEC is unwilling to slash production. January crude oil futures tumbled 55 cents to $14.52 a barrel on the New York Merc, a new five-year low.

The newsletter Middle East Economic Survey reported that Saudi Arabia’s oil minister Hisham Nazer left his Arab colleagues in Damascus last week with the clear impression that the Saudis are unwilling to consider output cuts.

“The November OPEC meeting confirmed fears about the cartel’s ability to adequately react to market weakness, reduce output and consequently reverse bearish psychology,” said Alan Struth, economist at Phillips Petroleum.

In the bond market, trading was lethargic, and yields crept up. The yield on the Treasury’s 30-year bond rose to 6.23% from 6.20% on Friday.

Analysts said big investors appear unlikely to make significant shifts in their bond portfolios between now and the end of the year, despite worries about growing economic strength.