WALL STREET A golden week

Press, 16 December 1985, Page 31

WALL STREET A golden week

NZPA-AP New York The New York stock market chalked up another big gain on Friday, resuming its recent rally amid hopes for lower United States interest rates.

The Dow Jones average of 30 industrials climbed 23.97 points to close at 1535.21, nringing its gain for the week to 58.04 points. It was the largest weekly rise for the average since it jumped 87.46 points in the week, July 30 to August 3, 1984. Advances outpaced declines by more than three to one on the New York Stock Exchange. Interest rates dropped slightly in the credit markets amid talk that the United States Federal Reserve Board might soon lower its discount rate.

The theory on Wall Street is that the board might see an opportunity to relax its credit policy now that Congress has taken some action on the Federal Budget deficit. On Wednesday night it passed the Gramm-Rudman Bill, which calls for a balanced Budget by 1991.

Statistics lent some support to. hopes for a pick-up in economic growth in the months ahead. The Federal Reserve Board reported that industrial production rose 0.4 per cent in November. Another, not-so-favourable number was the 0.8 per cent rise in the producer price index of finished goods, reported by the Labor Department.

The Dow Jones closed at a record high on Monday, set another record on Tuesday, and on Wednesday broke 1500

points for the first time. It slipped 0.46 points on Thursday. Factors in the boom week included suggestions from the conference of the Organisation of Petroleum Exporting Countries that oil prices would be lower next year, and a takeover bid by the GAF Corporation for Union Carbide. (Union Carbide is one of the 30 companies on which the Dow Jones industrial average is based.) Closing prices oh Friday of a selection of stocks were: Alcan Alu 28%, Alcoa 38, AmeradHes 27,. ABC 120%, AmExpress . 52%, AmMotors 2%, ATT 24; Armco 9%, Asarco 18%, Atlßich 61%, BethStl 15%, Boeing 50%, Borden 49%, Burroughs 62%, Chrysler 43%, Citicorp 48%, Coca Cola 84%, Colgate 31%, CBS 114%, ContlGrp 19, Crane 38, DarKrft 43, Digital. 132%, Disney 106%, DomeMfhes 8%, Dow Chem 40%, DuPont 63%, East Kodak 51%, Englhrd 22%, Exxon 51%, Firestone 21, Flour 14, Ford, 56%, FrptMcM 20%, GenDynam 66%, GenElec, 68%, GM 73%, GenTire 62%, Goodyear 29%, Greyhound 33, Grumman 31%, Gulf Oil 13%, Haliburton 25%, Homestake 21%, Honeywell 73%, IBM 148%, Int Harv 8%, INCO 12%, ITT 35%, Lockheed 48%, Manville 5%, JhsnJhsn 52, KaiserAlu 16%, KMart 35%, Mcdonald’s 76%, McDonDoug 71%, MGM 24%, MMM 88%, Mobil 29%, Monsanto 47%, NCR 40, NewmMin 45%, Pfizer 54%, PhelDodge 22%, Phil Pete 11%, Polaroid 38%, RCA 59%, Raytheon 54, ReynMetal 35%, RoylDPet 60%„ Seagrams 45%, Searsßoe

40%, Shellßt 36%, Sperry 51%, Chevron 35%, Sohio 49%, Texaco 28%, Texaslnst 104%, UnionCarb 68, USSteel 25%, WestgEle 45%, Woolworth 62%, Xerox 59%, Schlumberger 33%, MerrylLynch 35%, Occidental 33, Heinze 32%, Clevel’dCliff 17%, Int-North 46%, Ame Airlines 35%.