Wall Street last week

Press, 7 August 1978, Page 14

Wall Street last week

The Wall Street stockmarket staged a strong rally last week: the Dow Jones industrial average closed on Friday at 888.43— a rise of 32.14 on the week.

Trading was exceptionally heavy; Thursday’s volume of more than 66M was a record for a day’s trading, and the week’s volume of more than 220 M was also a record. The U.S. Government reported that the index of leading economic indicators, which is designed to function as a kind of crystal ball for business activity, climbed 0.4 per cent in June, after an upward-revised 0.1 per cent advance in May.

The market’s recent strength has been credited in part to hopes that interest rates might be topping out after a steady rise over the past several months. In their apparent preoccupation with that prospect, investors have paid little heed to less favourable developments. Analysts also said that the euphoric mood producing the dramatic gains was inspired by the widelyfollowed Wall Street doctrine known as Dow theory. That theory indicates a “buy” signal when both the industrial and transportation

indices establish new highs for a significant period of time.

Closing prices on Friday of a selection of shares were:— Alcan, 313; Alcoa, 463; All. Stores, 253; Amax, 383; Amerada Hess, 283; Am. Motors, 53; Armco, 331; Asarco, Arco, 50?; Bethlehem, 25?; Boeing, 73}; Boise Case., 31; Burroughs, 82J; Clev. Cliffs, 62g; C. 8.5., 62}; Colt, 39; Con. Oil, 265; Crane, 29g; Cyprus, 18; Dome Mines, 81; Dow, 26g; Engelhard, 251; Firestone, 13|; Ford, 47J; Freeport, 283; Gen. Dyn., 85; G.E.C., 55g; G.M., 643; Gen. Tire, 28g; Getty Oil, 135; Goodyear, 183; Greyhound, 14; Grumman, 23; Gulf Oil, 24}; Gulf Res., 10}; Heinz, 4lg; Homestake, 38}; Hudson Bay, 162; 1.8. M., 2883; I-H., 39; Inco., 165; Johns Manv., 32; J. and J., 85; Kaiser, 35; Kennecott, 223; Kerr McGee, 46; Lockhead, 34; Louisiana Land, 221; Lukens, 351; Lykes, 9J; Martin Marietta, 303; Merrill Lynch, 21J; Mobil, 65; N.C.R.. 62g; Newmont, 19J; Occ. Oil, 213; Phelps Dodge, 241; Phillips Pet., 33}; Pittson, 25|; Proler, 23; Pullman, 42J; Rep. Steel, 25§: Reynolds. 331; Royal Dutch. 61J; St Joe, 24: Seaboard. 34; Shell Oil, 333; Shell Transport, 42}; Socal, 41 g; Solnd, 50*: Sohio, 35g; Exxon, 48j; Texaco, 25§: Texas Gulf, 21; T.W.A., 28§: Union Oil, 491; Union Carbide. 403; U.S. Steel, 293; Westinghouse, 24}; Wwths, 20 j.