WALL STREET Pressure still on after Budget announcement

Press, 23 November 1987, Page 14

WALL STREET Pressure still on after Budget announcement

NZPA-AP New York Prices weakened broadly in nervous trading on the New York Stock Exchange on Friday, although blue-chips finished higher in volatile activity after the announcement of the longawaited proposal to cut the Federal Budget deficit.

Stocks tumbled in early trading on reports that no significant Budget agreement was in sight after nearly a month of negotiations in Washington, but rallied on later word of a tentative twoyear pact to cut SUS7S billion from the deficit. However, analysts said stocks remained under pressure from speculation that the reductions were not much greater than the SUS 23 billion in automatic cuts already scheduled to take effect at midnight on Friday.

There also was widespread sentiment that the package, which included

new tax increases, would have a rough time winning full approval, in spite of optimism expressed by Congressional leaders and President Reagan.

Wall Street all week had focused on the budget negotiations to the virtual exclusion of other news, as the talks ground on toward today’s deadline. Market analysts said investors had become increasingly nervous over the lack of agreement in spite of nearly a month of talks. Inability to hammer out a plan was seen widely in American and foreign markets as reflecting a lack of Government leadership in addressing a problem regarded as a key factor in the market’s October 19 crash.

The Dow Jones average of 30 Industrials, down more than 30 points in the early going, closed 18.24 points up at 1913.63, cutting its loss for the week to 21.38 points.

Falls outnumbered rises by about eight to seven on the New York Stock Exchange, with 705 up, 828 down and 421 unchanged. Stocks declined sharply on Friday in a selloff brokers attributed to exasperation with Washington’s waffling about the deadline to cut the bulging Federal Budget deficit.

The Dow Jones average fell 43.77 points to close at 1895.39.

On Thursday, the market turned up near the close of a drifting session. The Dow Jones, down about 25 points at its lowest levels of the session, closed with a 16.91 gain at 1939.16.

- Prices of a selection of stocks at the close on the New York Stock Exchange on Friday (in points equal to SUSI).—

Alcan Alu 24%, Alcoa 44%, Amerad Hes 23%, Ampress 24, Armco 8%, Asarco 23%, Atl Richfield 71%, ATT 28%, Beth Stl 12%, 36%, Borden 44%, CBS 162%, Chevron

38%, Chrysler 23, Citicorp 19%, Clark Eqp 23%, Coca Cola 39%, Colgate 39%, Conti Data 22%, Crane 20%, Digital 124%, Dow Chem 80%, Du Pont «1, East Kodak 47%, Engihrd 17%, Exxon 40%, Firestone 33%, Fluor 12%, Ford 75%, Frpt Manor 20%, Gencorp 68%, Gen Dynamic 47%, Gen Elec 45%, GM 60%, Goodyear 49%, Greyhound 25, Grumman 22%, Gulf Res 10%, H. J. Heinz 38, Haliburton 25%, Homestake 15%, Honeywell 56%, IBM 117%, INCO 15%, ITT 47%, JsonJson 77%, K Mart 28%, Kaisertech 10%, Kraft In 49%, Lockheed 36%, MMM 64, Manville 2%, Mattel 7%, Medon Doug 59%, Mcdonald’s 45, Merryl Lynch 20%, Mobil 36%, Monsanto 70%, Navistar 4%, NCR 61%, Newm Min 32%, Occidental 24%, Pfizer 51%, Phel Dodge 37%, Philips Pe 10%, Polaroid 20%, Raytheon 66%, Reyn Metal 44%, RoylDPet 106%, Schlumberger 31%, Seagrams 55, Sears Roe 35%, Shell Tr 70%, Texaco 28%, Texas Inst 40%, UNOCAL 25%, Union Carb 21%, Unisys 30, USXC 27, Walt Dis 53, Westg Ele 45%, Woolworth 33%, Xerox 56%.