Economic figures deflate Wall St

Press, 5 December 1988, Page 18

Economic figures deflate Wall St

NZPA-Reuter New York Stock prices declined in light trading on Friday (early Saturday N.Z. time) after the Labour Department released employment figures for November that indicated a continued strength in the American economy. The Dow Jones average of 30 industrials fell 9.60 to 2092.28.

Decliners outpaced advancers by a 4-to-3 margin, with 803 stocks down, 603 up and 523 unchanged on the New York Stock Exchange. NYSE volume totalled 124.61 million shares, against 129.38 million in the previous session. The NYSE’s composite index fell 0.35 to 153.02.

The eagerly awaited report on U.S. employment disappointed traders because of the creation of 463,000 new jobs — an indication that the economy remains strong. Bond prices tumbled on the news and stock prices followed suit because of

the likelihood that the Federal Reserve would move interest rates higher to cool the economy down and keep a lid on inflation.

But interest in blue chip issues during the afternoon was interpreted as a positive sign by analysts.

“A lot of investors are looking for an entry into the market,” said Michael Metz, an analyst with Oppenheimer and Co investment firm.

He said some traders believed Wall Street’s reaction to the Labour Department figures was a temporary phenomenon, and the fact they were buying stocks showed how resilient the market was.

In its report, the Labour Department also said the unemployment rate rose to 5.4 per cent from October’s 5.3 per cent. Closing prices for selected Wall Street stocks on Friday (points equal SUSI) included.—Alcan 31>4, Alcoa 511/ 2 , Amerada 29%, AmExp 26%, Armco 9%, Asarco

26%. RCO 78%, ATT 38%, BethStl 19%, Boeing 62%, Borden 55. CBS 168%. Chevron 44%, Chrysler 26, Citicorp 26%, ClarkEqp 31%, Coca Cola 43, Colgate 44%, ContlData 17%, Crane 22%, Digital 95%, Dow Chem 84%, DuPont 80%, East Kodak 45, Englhrd 17%, Exxon 42%, Fluor 20%, Ford 51%, FrptMcmor 27%, Gencorp 18, GenDyn 49%, EC 43%, GM 83%, Goodyear 47%, Greyhound 28%, Grumman 21, Gulfßes 12, Heinz 44%, Haliburton 26%, Homestake 13%, Honeywell 60, IBM 119%, INCO 32%, ITT 51, JandJ 84%, KMart 34%, Kraft 105%, Lockheed 40, MMM 60%, Mattel 9%, McdonDoug 77%, Mcdonald’s 46%, MerrLynch 25%, Mobil 44%, Monsanto 81, Navistar 5%, NCR 52%, NewmMin 35%, Occidental 26, Pfizer 56%, PhelDodge 48%, PhilipsPet 20%, Polaroid 35%, Raytheon 70%, ReynMetal 48%, RoylDutch 113, Schlumberger 32% Seagrams 58%, Searsßoe 39%, ShellTr 72%, Texaco 47, Texaslnst 373%, UNOCAL 37%, UnionCarb 24%, Unisys 27%, USX 27%, Disney 63, Westinghouse 51%, Woolworth 50%, Xerox 54%.