WALL STREET Sharp drop in prices

Press, 12 August 1985, Page 36

WALL STREET Sharp drop in prices

Stock prices on Wall Street last week posted sharp losses over a broad front, because of uncertainty over the outlook for the economy and interest rates. The Dow Jones index of 30 industrials dropped 32.15 points to 1320.90. Early in the week investors were uneasy about the reception the credit markets might give to the Treasury’s record offering this week of SUS2I.S billion in bonds and notes. But on Thursday investors showed some enthusiasm for stocks as the U.S. Treasury completed the three-day sale of bonds and notes. The auction drew a better response than some observers had expected. Analysts said there were still widespread doubts on Wall Street that interest rates could go much lower in the near future.

Without a drop in rates, many Wall Streeters believe, economic growth and corporate profits must show some significant improvement if stocks are going to resume the rally they staged from early May to mid July. At the same time, hopes that economic growth was reviving

got not support from a survey or corporate purchasing executives, the results of which were reported over the week-end. The National Association ot Purchasing Management's index was unchanged from its reading in June, at a level that is interpreted as indicating a declining economy. That was at variance with other recent data— including a rise in the Government s index of leading indicators-that had prompted hopes for a pickup in economic activity and corporate profits in the third quarter of the year after a sluggish first half. Closing prices (in U.S. dollars) on Friday of a selection of shares were:-

Alcan, 27%; Alcoa, 34; Amerad Res, 27k4; ABC, 115; Am Express, 43%; Am Motors, 3%; ATT, 21%; Armco, 10%; Asarco, 21%; Atl Rich, 58%; Beth Stl, 17%; Boeing, 49%; Borden, 37%; Burroughs, 62%; Chrysler, 36%; Citicorp, 46%; Coca Cola, 71%; Colgate 27%; CBS 105%; Conti Grp 42%; Crane, 36%; Dar and Krft 35; Digital Eq, 102%; Disney, 89%; Dome Mines 8%; Dow Chem,

35%; Du Pont, 58; East Kodak, 44%: Englhrd. 26%; Exxon, 51%; Firestone. 20%; Fluor. 17%; Ford, 44%; Frpt McMor, 19%; Gen Dynam, 76%: Gen Elec, 61%; Ge'n Motors, 69; Gen Tire, 45%: Goodyear. 28; Greyhound, 27%; Grumman. 30; Gulf RES, 15; Haliburton, 28%; Homestake, 27%; Honeywell, 64%; IBM, 127%; Inti Harv, 9%; INCO, 14%; Intl’l T and T, 33; Levi Strauss, 49%; Lockheed, 51%; Manville, 6%; Jhsn and Jhsn, 45%; Kaiser Alu, 14%; K Mart, 34%; McDonald’s, 65%; McDon Doug, 78%; MGM, 24%; MMM, 79%; Mobil, 29%; Monsanto, 51%; NCR, 32%; Newm Min, 44%; Pfizer, 48%; Phel Dodge, 21%; Phil Pete, 12%; Polaroid, 31%; RCA, 42%; Raytheon. 48%; Reyn Metal, 36%; Royl D Pet, 59%; Seagrams, 40%, Sears Roe, 35%; Shell Tr, 36%; Sperry Cp 49%; Chevron, 36%; S Oil Ohio, 4545; Texaco, 35%; Texas Inst, 99; Union Carb, 50%; US Steel, 30; Westg Ele, 34; Wwths, 44%; Xerox, 52 Vs; Schlumberger, 37%; Merry 1 Lynch, 31%; Occidental, 33%; Heinz, 53%; Clevel’d Cliff, 19%; Inter-North, 40%; Amer Airlines, 49%.