WALL STREET WEAKER

Press, Volume XCIX, Issue 29108, 21 January 1960, Page 17

WALL STREET WEAKER

Sharpest Drop For Two Months

(N.Z. Press Association—Copyright) NEW YORK, January 19.

Stocks tumbled under persistent selling pressure today, all shares listed on the New York Stock Exchange losing an estimated 3100 million dollars in the sharpest break so far this year, American Associated Press reported. . Motors, chemicals, oils, rails, metals, airlines and electronics headed lower. A few steel issues resisted selling and scattered stocks registered gains on favourable individual news. The Dow Jones industrial average fell 8.79 dollars to 645.07 dollars. It was the tenth day out of 12 trading sessions so far this year that this average has declined. The American Associated Press average of 60 stocks, upon which the value decline for all shares is based, fell 2.30 dollars. It was the biggest break in this average since it fell 3.30 dollars on November 16, 1959. Brokers viewed the decline as tied in with money factors rather than with business conditions. Many stocks have been selling at levels where they yield less than do high-grade bonds. In addition, inflations fears appeared to be waning with announcement of the new Budget containing its projection of a federal monetary surplus. Discount Rate There also was the possibility of a further tightening of money with a rise in the discount rate when the Federal Reserve Board meets on Thursday. There were 280 stocks advancing while 729 declined. At times the ticker briefly ran behind floor transactions. Volume for the day was not unduly large at 3,100,000 shares.