WALL STREET Prices slide with poor indicators
NZPA-AP New York Stock prices drifted to a broad decline in light trading in New York on Friday, capping a lack-lustre week. The market was on the downside for most of the session, and the slide came amid indications of continued weakness in the American economy. The United States Commerce Department said on Friday that housing starts fell 2.4 per cent last month to a seasonally adjusted annual rate of 1.65 M units. Many economists had looked for a July gain be-
cause of recent declines in mortgage rates. On Thursday, the Federal Reserve Board said consumer credit outstanding rose SUS6.B billion in July, down from gains of SUSB billion to SUS 9 billion in the previous four months. Economists said the July increase might indicate a slowdown in consumer spending. Meanwhile, the expiration of several stock-index futures apparently did not produce the late volatility in prices for which Wall Street had braced.
On previous expiration days, prices took sharp swings in late trading as professional traders closed out positions in both the options and in the stocks that comprise the indexes. Losers outpaced gainers about eight to five on the New York Stock Exchange, whose composite index lost 0.67 to 107.92. The Dow Jones average of 30 industrials fell 5.15 to 1312.61, giving it a loss for the week of 8.18 points. Last week marked the third anniversary of the powerful bull market that during its run has propelled the Dow Jones industrial average and New York Stock Exchange trading volume to record highs. It was August 12, 1982, when the average bottomed at 776.92 before soaring to 1000 two months later. Lately, however, the market has been pulling back amid increased investor uncertainty as to the outlook for U.S. interest rates and the American economy over all. Wall Street is struggling to figure out whether or not the economy is rebounding from its meagre growth in the first half of the year, and what impact that will have on federal reserve monetary policy and the course of interest rates.
On Wednesday and Thursday the market moved ahead early, but later fell in generally quiet trading. The Federal Reserve Board said on Thursday that American industrial production rose 0.2 per cent in July, which was in line with many economists’ forecasts.
Prices of a selection at Wall Street stocks on Friday: Alcan Alu, 26%; Alcoa, 35; Amerad Hes, 26%; ABC, 115; AmExpress, 42%; AmMotors, 3; ATT, 20%; Armco, 10; Asarco, 21%; Atlßich, 58%; BethStl, 17%; Boeing, 47; Borden, 38%; Burroughs, 61%; Chrysler, 35%; Citicorp, 46%; Coca Cola, 71%; Colgate, 26%; CBS, 111%; ContlGrp, 42%; Crane, 36%; DarKrft, 34%; Digital, 99%; Disney, 88; DomeMines, 9%; Dow Chem, 35%; DuPont, 57; East Kodak, 44%; Englhrd, 26%; Exxon, 50%; Firestone, 19%; Fluor, 16%; Ford, 43%; FrptMcM, 19%; GenDynam, 78%; GenElec, 60%; GM, 65%; Gen Tire, 45; Goodyear, 28%; Greyhound, 27%; Grumman, 31%; GuIfRES, 15; Haliburton, 28; Homestake, 27%; Honeywell, 63%; IBM, 125%; IntlHarv, 9; INCO, 14%; ITT, 32%; Levi - trauss, 49%; Lockheed, 51%; Manville, 6%; JhsnJhsn, 46; KaiserAlu, 16%; KMart, 34%; McDonald’s 64%; McDonDoug, 79%; MGM, 26%; MMM, 76%; Mobil, 29%; Monsanto, 50%; NCR, 32; NewmMin, 46; Pfizer, 48; PhelDodge, 22; Phil Pete, 12; Polaroid, 31%; RCA, 43%; Raytheon, 49%; ReynMetal, 34%; RoylDPet, 59%; Seagrams, ’ 39%; Searsßoe, 35%; Shell tr, 37%; Sperry, 48%; Chevron, 36%; Sohio, 46%; Texaco, 35%; Texaslnst, 98%; UnionCarb, 52%; USSteel, 29; WestgEle, 33%; Woolworth, 47%; Xerox, 52%; Schlumberger, 36%; MerrylLynch, 30%; Occidental, 32%; Heinze, 55; Clevel’dCliff, 20; Int Nth, 42; AmAirlines, 47%.
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Press, 19 August 1985, Page 30
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591WALL STREET Prices slide with poor indicators Press, 19 August 1985, Page 30
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