WALL STREET Index consolidates

Press, 12 January 1987, Page 26

WALL STREET Index consolidates

Tke Unfted States share cctehraied rfr week, with the Dow Jones industrial average index saMShing the important 2900 barrier, and the S and P 500 March futures contract the 257 mark. These gains were followed through on Friday. The euphoria for equities should remain a major influence on the market in the intermediate term, as the market withstood profit-taking very well, and despite technical indications of the market being overbought Some liquidation by major share holding institutions late last year has provided them with plenty of money to invest The Wall Sheet stock market gained more ground extending its eariy-1987 rally despite periodic bouts of profittaking. Analysts said it was no surprise to see some traders cashing in their gains early in the session after a 106.30-point runup in the Dow Jones industrial average during the first five sessions of 1987.

They also said a few investing institutions may have set the 2000 level as

a target for profit-toktag. Stocks also had to make do without much tußp from the bond market, where interest rates stopped failing and turned modestly -higher. Bond traders became a bit wary after the Governments monthly report on trends in the US labour force showed a bigger than expected increase io non-farm paynfll employmeni lasi month. ° In a separate the Labour Department said the producer price index of finished goods was unchanged in December, signalling a ctmtinuing tow level of inflationary pressures. The Dow Jones average of 30 industrials finished at 2005R1, dosing out the week with a gain of 78.60 points. On Monday the Dow Jones Industrial Average jumped 44 points to 197 L That gain, combined with the 31-point rise on Friday, is the biggest two-day advance in memory, markd analysts said. They noted, however, that the previous all-time single day gain of 43.41 points, set November 3,1982, was greater on a percentage basis, dosing prices, in

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