Wall Street last week

Press, 9 June 1980, Page 26

Wall Street last week

The Wall Street stock! market moved higher lastweek in active trading, aideai by signs that inflationary pressures may be abating.] However, the ” a ‘ n . was pared by late pi.-it taking. , Analysts said that investors were encouraged] that the rise in wholesale prices in May slowed 'to 0.3, per cent, the smallest gain] since September, 197/. Joblessness took its biggest] two-month jump on record as May unemployment hit 7.8 per cent. Consumer credit outstanding dropped $1990M in April. Analysts said this news taken together suggested a steep but short recession. The D-J industrial average gained points during_ the week to close on 861.52 — its best level since February 29. Investors remain wary of the potential impact on corporate profits of a severe re-

cession. Factory orders’ dropped 5.5 per cent in. April, the sharpest fall since December, 1974. But there was better news on the monetary front. Dealers said that a prime rate cut, and revival of the bond market rally despite a heavycalendar of offerings r?stored confidence that the trend in interest rates continues to be downward. Chase Manhattan Bank led a prime rate cut to 13 per cent, from 14 per cent, and was t followed by several major banks. The Reserve’s chairman (Mr Volcker) said that lower rates do not indi.'ate a change in Reserve Bank policy aimed at specific money growth targets. Closing prices on Friday of a selection of shares were:— „ : ABC, 29 1/2: Alcan, 2/ o/4, i Alcoa. 60; Amax. 4/ 1/4; Amarada Hess. 52 1/8; Am Express, '34 1/4; Am Motors, 5: Armco,

128 1/8; Asarco, 39 3/8; A.T an(l T.. 52 7/8; Atl Rich, 94 7/8Stl. 21 3/8; Boeing, 34 ÜB-bS? I den. 23 5/8; Burroughs, 69 i C. 8.5.. 48 1/2; Citicorp, 2 2 jwti Coca Cola, 34 1/8; Cont Oil vi 1/8; Digital Eq, 68 5/8: Disnev 49 7/3; Dome Mines. 77 3/8; Dow 33; Du Pont, 40 5/8; East Kodak 55 1/8; Engelhard. 35; Exxon sS Firestone, 7; l ord, 24 1/2- L:; Min, 38; Gen Dynatn. 65; Grn Electric 50 7/8; Gen Motors u 1/8; Gen Tyres. 16 7/6; Good year, 13; Greyhound, 15 7A. Grumman, 23 1/2; Gulf oil at’ 3/8: Haliburton. 106 3/4; , stake. 58 3/8: Honeywell,'79 •»/? IBM, 57 1/8; Int Harr. 26 3,’l Inco, 22 7/8; ITT. 27 7/8; Job’’ Manv. 21: J. and J.. 80 7/8- Kai. ’ser, 20 1/8; Kcnnecott, 29- k .Mart. 22; Lockheed. 30: McDon* aids, 47 1/3: McDon Dou» « 'l/2; MGM. 8; MMM, 55 7/r"'v? bil. 73 3/4; Monsanto. 50’ i/j. i NCR, 60 3/4; Newm Min, 40 l/i! Pfizer. 43; Phel Dodge, 31 3/jI Phil Pet. 47; Polaroid. 22 7/s! j Pullman,- 30 1/2; Raytheon 73 *3/4; RCA, 22 3/4: Reyn Metal 32 1/4; Royal Dutch, 84 1/2; Sea. gram, 55: Sears Roe. 16 1/8: Shell Oil, 69 3/8; Shell Trans. 36 7/8S'perrv Rand. 50: St Joe. 47- Sol cal. 74 3/8: Texaco, 35 7/8; fexak Gulf. 39 1/2; Texas Inst, 93 1/4: Union Carbide 43 1/2; Union Oil. 53 3/4; U.S. Steel 18 1/2; Westinghouse. 22 3/4I I Wwths, 26; Xerox, 57 3/8.