Wall Street breaks six-week drought

Press, 27 February 1984, Page 14

Wall Street breaks six-week drought

The Wall Street stockmarket broke a string of six consecutive weekly losses last week, when it staged on Friday its strongest rally of the year. The Dow Jones industrial average jumped 30.47 points for a net gain of 16.23 points on the week.

Hopes are spreading on Wall Street that the sudden reversal marks an important turning point, but some analysts remain sceptical that the long decline in share prices since early January is over.

Earlier in the week investors appeared concerned over the interest rate trend, after two prominent Wall Street economists — Henry Kaufman of Salomon Brothers,and Gary WenglowskiofGoldman.Sachsand Company — predicted higher rates in the months ahead. Kaufman said rates on long-term treasury bonds may eventually get close to their previous peak of 15% per cent — about 3 percentage points higher than they stand at the moment. Wenglowski said he believed

bond-market rates did not yet reflect a possible pickup in inflation.

But one analyst said that the market currently has more of a psychological problem than a concern about anything tangible like interest rates. “By the market anticipating an (economic) slowdown it could create the very slowdown that it is worried about,” he explained. He also said that investors continue to worry about congress’s failures to cut the Federal budget deficit. Armco, 19%; Alcan, 34%; Alcoa, 39%; Amerad Hes, 31%; ABC, 52%; Am Express, 29%; ATT, 17%; Asarco, 33%; Atl Rich, 45%; Beth Stl, 24%; Boeing, 43%; Borden, 53; Burroughs, 47%; Citicorp, 34%; Chrysler, 28%; Coca-Cola, 52%; Colgate, 23%; CBS, 64%; Conti Grp, 47%; Crane, 28%; Dome Mines, 15%; Dart and Kraft, 68%; Digital Eq, 87%; Disney, 51%; Dow Chem, 29%; Du Pont, 46%; East Kodak, 69; Engelhrd, 30%; Exxon, 38%; Firestone, 16%; Fluor, 20%;

Ford, 37%; Frpt Mcmor, 22; Goodrich, 30%; Gen Dynam, 50; NCR, 111%; Gen Elec, 53%; Gen Motors, 69%; Gen Tire, 32%; Greyhound, 22%; Grumman, 23%; Gulf Oil, 62%; Gulf Res, 21%; Haliburton, 37%; Homestake, 34%; Honeywell, 54; IBM, 111%; Inti Harv, 11%; INCO, 14%; Inti T and T, 40%; Jhsn and Jhsn, 36%; Kaiser Alu, 17%; K-Mart, 30; Lockheed, 37%; Manville, 11%; McDonald’s, 65%; McDon Doug, 55%; MGM, 13%; M-M-M, 76%; Mobil, 30; Monsanto, 87%; Newm Min, 53%; Pfizer, 37%; Phel Dodge, 27; Phil Pet, 42%; Polaroid, 28%; RCA, 32%; Raytheon, 40%; Royl D Pet, 51%; Seagrams, 34%; Sears Roe, 35%; Shell Oil, 57; Shell Tr, 37; Sperry, 42%; St Oil Cal, 36%; St Oil Ind, 53%; S Oil Ohio, 47; Texaco, 42; Texas Inst 129%; Uncal, 36%; Union Carb, 54; US Steel, 27%; Wwths, 31%; Westg Elect. 47%; Xerox, 43%; Schlumberger, 48%; Sedco, 35%; Merryl Lynch, 36%; Occidental, 25%; Heinz, 34; Clevel’d Cliffs, 23%; Inter-north, 38%; Am Airlines 29%.