Wall Street rebounds

Press, 31 March 1980, Page 24

Wall Street rebounds

Stock prices rose sharply in busy trading on Friday as Wall Street leaders and government officials began examining the jolt the Ne York market took late on Thursday after the collapse in silver prices. The Dow Jones industrials rose 17.67 points to close at 777.65, for a net loss on the week of 7.50 points. Because of. the wild market gyrations on Thursday (Harold Williams) the chairman of the Securities and Exchange Commission on Thursday went .to the New York Stock Exchange for an emergency meeting. On Thursday the -S.E.C. had halted trading in the securities of the Bache Group, a brokerage house that had large loans outstanding for silver purchases by the wealthy Hunt family of Texas. Those loans were endangered when the price of silver plunged. Friday’s upward movement in prices was broadbased, but was particuarly strong in the independent oil and precious metals issues. We are having a classic rebound from panic selling,

said one analyst. The gains came as Citibank of New York and the First National Bank of Chicago announced they had increased their prime lending rate by one-quarter point to 19.25 per cent, and the Bank of America, the nations largest, to 19.5 per cent. Spiralling interest rates have been cited as a major reason behind the fall in precious-inetals price that sparked a stock. market plunge and the later recovery. Wall Street began the week on an easy note amid expectations of further increases in interest rates and fears of a severe recession. Analysts said that the continued heavy borrowing by businesses and the United States Government in the ! coming weeks would push ' interest rates still higher, and that the recent moves by the Federal Reserve Board to tighten credit created the potential for a severe recession.

The high interest rates continued to prompt investors who bought stock on : credit to sell to reduce carrying costs.

' Closing prices on Friday of a selection of stocks were:—

ABC, 30 1/2; Alcan, 50 5/8; Alcoa, 57 1/4; Amas, 41 7/8; Amerada Hess, 43 1/4; Am Express, 28 1/2; Am Motors, 6; Armco, 25 3/4; Asarco, 30 1/4; AT and T, 48 1/2; Arco, 84 3/4; Beth Stl, 20 1/4; Boeing, 54; Borden, 20 3/8; Burroughs, 65 3/4; CBS, 45 1/4; Citicorp, 18; Coca Cola, 31 1/2; Cont OH, 44 3/8; Digital Eq, 61 3/8; Disney, 43 7/8; Dome Mines, 55; Dow Chem, 30 7/8; Du Pont, 34 1/8; East Kodak, 47 1/2; Englehard, 25 3/4; Exxon, 57; Firestone, 6 3/8; Ford Motor, 28 3/4; Free Min, 39; Gen Dynam, 67 3/3; GEC, 47 3/4; GMC, 46 1/2;, Gen Tyres, 13 3/8; Goodyear, 11 1/4; Greyhound, 15 1/4; Grumman, 20 1/4; Gulf Oil, 38 3/8; Haliburton, 90 1/2; Homestake, 41 1/2; Honeywell, 74; IBM, 55 */8; IH, 26 5/8; Inco, 23 5/8; ITT, 24 1/8; Johns Manv, 18 3/8; J and J, 69; Kaiser Alum, 18 1/2; Kennecott, 29; K Mart, 18 1/2; Lockheed, 25 7/8; McDon Doug, 38 5/8; McDonalds, 39 3/4; MGM, 17; MMM, 49 5/8; Mobil, 64; Monsanto, 47 1/2; NCR, 58 1/2; Newmont, 37 1/2; Pfizer, 37; Phelps Dodge, 23 3/4; Phillips Pet, 41 1/2; Polaroid, 19 3/4; Pullman, 23 7/8; Raytheon, 71 3/8; RCA, 20 5/8; Reynolds Metal, 30 3/4; Royal Dutch, 71 1/4; Seagram, 38; Sears Roebuck, 16; Shell Oil, 59 5/8; Shell Trans, 30 1/2; Sperry Rand, 46; St Joe Mln, 41 3/4; Socal, 65 1/4; Texaco, 33 3/8; Texas Gulf, 34 1/2; Texas Inst, 83 3/4; Union Carb, 37 1/2; Union , Oil Cal, 49 1/4; US Steel, 17 1/8; Westinghouse, 21; WTwths, 21 3/4; Xerox, 55 3/8.