Wall Street boom

Press, 11 October 1982, Page 28

Wall Street boom

Wall Street closed its books on a week that saw a furious buying splurge produce the second highest single-day jump in stock prices in history one day and on the next a record for over-all volume.

Investors, apparently buoyed in part by the belief that the Federal Reserve Bank, the U.S. Central Bank, would not restrict the growth in money supply, jumped into action to push the volume to 147.07 million shares. The previous mark of 137.33 million was set last August 26.

The Dow Jones industrial average climbed by 21.71 points to 963.97—its highest finish in 15 months.

On Wednesday stock prices jumped 3717 points for the second best mark on record.

Analysts’ predictions that interest rates would continue to drop were borne out on

Thursday when most banks dropped their prime interest rates from 13.5 to 13 per cent.

This was coupled with the belief that the Federal Reserve would not halt the money supply growth even though m-1, a measure of all money in circulation and in chequing accounts, was running above its target range of 2.5 to 5.5 per cent. Foreign investors also figured prominently in the action.

‘‘They are coming into the market in droves. There's also a lot of money available from the all-saver certificates. And with the interest rates coming down everyone wants to get into the market,” said John Smith, an analyst with Fahnestock and Company.

The tax-free all-saver certificates were established by

the Government to encourage savings. Mr Smith added: “The bull market should continue for some time and will probably move on to some of the groups that have been ignored so far, such as oil, oil services, and lumber stocks.” Alcan, 23%; Alcoa, 28%; Amereda Hess, 25%; ABC, 51%; Amax, 21%; Am Express, 54%; Amer Motor. 4%; ATT, 61%; Armco. 14%; Asarco, 25%; Atlantic Rich, 45%; Bethlehem. 16%; Boeing, 22; Borden, 38%; Burroughs. 38%; Chrysler, 9%; Citicorp, 33%; Coca Cola. 44%; Colgate, 20%; CBS, 53; Cleveland Cliffs. 20%; Continental, 33%; Crane, 24%; Dart and Kraft, 66%; Digital Eq. 89%; Disney, 62%; Dome Mines. 9%; Dow, 25%; Du Pont, 37%; East Kodak, 93%; Englehard. 26%; Exxon, 29%; Firestone, 12%; Fluor, 18%; Ford. 29; Freeport McMoran. 14; Gen Dynamics. 25%; Gen Elec.

82%; Gen Motors. 50%; Gen Tire. 27%; Getty Oil. 55%; Goodyear, 27%; Greyhound Corp, 15%; Grumman, 43%; Gulf Oil, 32%; Haliburton. 26; Heinz, 39; Homestake, 41; Honeywell, 86%; 1.8. M., 81%; Inti. Harvester, 3%; Inco, 9%; ITT, 28%; Manville, 5%; Johnson Johnson, 42%; Kaiser Alum, 14%; K-Mart, 21%; Lockheed. 74; McDonalds, 60%; McDon Doug, 42%; Merrill Lynch. 43: MGM, 6%; M-M-M, 74%; Mobil, 26; Monsanto, 78%; MCR. 68%; Newmont. 41%; Occidental, 19%; Pfizer, 78%; Phel Dodge, 22%; Phil Pet, 30%; Polaroid, 25%; RCA, 25%; Raytheon, 45%; Reynolds Met, 23%; Royal D Pet, 32%; Schlumberger, 37%; Seagrams, 67%; Sears Roe, 26%; Sedco, 24%; Shell Oil. 40%; Shell Tr„ 26%; Sperry, 24%; Socal, 30%; Soind, 44; Sohio, 37%; Texaco. 30; Texas Inst, 101%; Union Oil. 30%; Union Carb. 54%; U.S. Steel. 18; Westinghouse. 36%; WWths, 26%; Xerox. 35 1 z.