New York market expect rise in interest rates
(New Zealand Press Association—Copyright) NEW YORK. Stock prices tumbled in slow trading on Monday as investors stepped-out to study the prospect of higher interest rates, but a rally on Friday reduced losses for the week.
On Monday the chairman of the Federal Reserve (Arthur Burns) told a Senate Committee that the Fed has powered its target growth range for the money supply over the next year from between 4.5 and 7.5 per cent to between 4.5 and 7 per cent. Moves by the Fed to raise interest rates, and thus slow the growth in the money supply and inflation have a negative influence on the stock market. The Government reported on Thursday that the rise of the wholesale price index accelerated to a 9.6 per cent annual rate in April trona 2.4 per cent in March. But Wall Street had had several days of advance warning from analysts that the April figure might show a substantial rise, and there seemed to be some feeling of relief among investors that the advance hadn’t been even sharper than it was. However, there appeared to be some precautionary selling in advance of the Government’s report. The closing prices on Friday of some selected stocks were: Alcan, 291; Alcoa. 514; Allied Stores, 504; Amax, 549; Amerida Hess. 221; Am. Mtr., 53; Armco, 318; Asarco, 16J; Anaconda, 24; At. Rich., 954; Bethlehem, 414; Boeing, 324; Boise Cascade, 261; Burroughs, 1008; Cleveland. 638; Colt. 44J; C. 8.5.. 444; Crane. 658; Cont. Oil, 70J; Cyprus, 27j; Dome Mines, 428; Dow Chem., 1081; Engelhard, 304; Firestone, 22g; Ford, 57J; Freeport, 27J; Gen. Dyn.. 584; G.M. 704; Gen. Tire, 214; Getty OU, 1584; Goodyear, 212; Greyhound Corp., 152; Grumman, 254; Gulf Oil, 251; Gulf Res., 17j; Heinz, 464; Homestake, 388; Hudson Bay, 214; IBM. 2502; 1.H., 261; Int. Mining, 9g; Inco, 344; Johnson. 872; Johns Man., 291; Kaiser, 324: Kennecott, 344; Kerr McGee, 668: Kresge, 364; Louisiana Land 2/5; Lockheed,
10; Lukens, 2264; Lykes. 244; Martin Marietta. 224; Merril Lynch. 263; Mobil Oil. 5«4; Nat. Cash Reg., 271; Newmoat, 284; Occidental, 15S; Phelps Dodge, 443; Phillips Pet.. 552; Pittson, 434; Proier. 434; Pullman, 33J; Republic, 344; Reynolds. 374; Royal Dutch. 473; Seaboard, 26: St Joe Min., 4/5; Shell OU, 60; Shell Trans., 32; Std OU Cal.. 37; Std Oil Ind.. 484; Std Oil Ohio, 73; Exxon. 994; Texaco, 262; Texas Gulf. 35fi; T.W.A., 114; Union Oil Cal.. 46; Union Carbide. 714; U.S. Steel. 82; Utah Lon., 56; Westinghouse, 154; Woolworth, 22j.
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Press, Volume CXVI, Issue 34149, 10 May 1976, Page 18
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420New York market expect rise in interest rates Press, Volume CXVI, Issue 34149, 10 May 1976, Page 18
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