Wall St edges upward as it attempts to end slump

Press, 11 September 1989, Page 30

Wall St edges upward as it attempts to end slump

NZPA-Reuter New York The Wall Street market edged upward on Friday (early Saturday N.Z. time), struggling to pull out of its week-long slump. Analysts said traders’ spirits got a small lift from declines in open-market interest rates. But they said doubts persisted about the chances for any concerted move in the near future by the Federal Reserve — the U.S. central bank — to relax its credit policy further. That view, in turn, reinforced suspicions among many market participants that stocks might be due for a pullback after their strong advance through the first eight months of the year. Brokers say the market’s rise to record highs in late August also may have touched off some selling by investors looking to “get out even’’ after suffering large paper losses in the crash of 1987. The Dow Jones average of 30 industrials rose 2.66 to 2,709.54, reducing its loss for the week to 42.55 points. Advancing issues outnumbered declines by about 10 to 9 on the New York Stock Exchange, with 734 up, 662 down and 568 unchanged. NYSE volume totalled 154.09 million shares, against 160.16 million in the previous session. The NYSE’s composite index gained 0.17 to 193 95. On Thursday Wall Street stocks fell propelled by a late burst of computerised program-trading that extended the market’s losing streak to three days. The Dow Jones industrial average fell 12.91 points to 2706.88, according to unofficial tallies, after tumbling 24.89 points on Thursday and 7.41 points on Tuesday. In the broader market, falls narrowly edged out rises on moderate volume of 161 million shares.

The market had been slightly higher throughout the trading day, but turned lower in the last hour of trading, traders said. On Wednesday stock prices declined broadly in an atmosphere of uncertainty about the outlook for U.S. Federal Reserve policy and interest rates. Analysts said a belief was spreading among investors that the Federal Reserve — the U.S. Central Bank — was unlikely to relax its credit policy further any time soon, given a stronger-than-expected economy. “At a minimum, the Federation is not going to provide the fuel to drive the market further,” said Hugh Johnson, at First Albany Corporation financial firm. Johnson also said portfolio managers at investing institutions seemed to be in a wary mood. “Institutional money managers have had an exceptionally good year, and they’re all trying to figure out how to protect their gains. Most of them don’t have many alternatives other than to sell stocks,” he observed. The Dow Jones average of 30 industrials dropped 24.89 points to close at 2719.79. Declining issues outnumbered advances by about 5 to 2 on the New York Stock Exchange, with 414 up, 1085 down and 462 unchanged. NYSE volume totalled 161.80 million shares, against 145.18 milion in the previous session. The NYSE’s composite index fell 1.66 to 194.18. And on Tuesday the stock market declined in quiet trading. Volume was low and analysts said there was little activity as many traders did not return from the long Labour Day week-end. Takeover-related buying in the airline and hotel sectors attracted the most interest, sending prices up.

Some blue chip stocks also rose in up-and-down trading that saw the Dow Jones industrials average fluctuate during the session before settling below a record high set on Friday. ' The previous week, the Dow average soared to new highs and amid an upbeat attitude about the U.S. economy. Several reports showed continued economic strength, including the August employment report, which buoyed market sentiment. The market was closed on Monday for Labour Day. The Dow Jones average of 30 industrials fell 7.41 to close at 2744.68.

Selected Wall St closing prices from Friday (points equal SUSI) include.— Alcan 24%, Aloca 74%, Allied Sig 38%, AMAX 28%, Americanßrands 76%, AmExpress 36%, AmHomeProd 99%, Amerada 42%, Armco 13%. Asarco 34%, RCO 105%, ATT 39%, Avon Prod 36%, Bankamer 32%, BethStl 21%, Boeing 55%, Borden 34%, BristolMy 50%, Caterpilar 63%, CBS 211%, Chrysler 26%, Citicorp 31%, ClarkEqp 43, Coca Cola 63%, Colgate 59%, ComwEdison 37%, ContlData 19, Crane 34%, Corning Glass 39%, Digital 98%, Dow Chem 101%, DuPont 116%, East Kodak 49%, Englhrd 23%, Exxon 44%, Fluor 35%, Ford 53%, FrptMcmor 34%, Gen Dynamic 57, Gen Elect 56%, GM 49%, Gencorp 18%, Goodyear 57, Grace 37%, Greyhound 36%, Grumman 20%, GTE 60, Gulfßes 10%, Heinz 62%, Haliburton 39%, Homestake 15, Honeywell 85%, IBM 116, INCO 34%, IntlPaper 55, ITT 61%, JandJ 52, Morgan 40%, KMart 41%, Lockheed 49%, Mattel 18%, McdonDoug 72%, Mcdonald's 28%, MerrylLynch 33%, Merck 70%, MMM 74%, Mobil 57%, Monsanto 120, Navistar 4%, NCR 63%, NewmMin 40, Occidental 29%, PacGasEl 20%, Pfizer 70%, PhelDodge 77%, PhilipMor 162%, Phil Pet 27%, Polaroid 46%, ProctGam 124%, Raytheon 783%, ReynMetal 57%, Seagrams 80%, Searsßoe 453%, ShellTr 42%, Schlumberger 44%, Tandy 473%, Tenneco 61, Texaco 51%, Texaslnst 39%, Timken 37, UnionCarb 29%, Unisys 21%, UnitedTeec 56%, UNOCAL 55%, USX 34%, Disney 120, Warner-Lam 108%, Westinghouse 67, Woolworth 71%, Xerox 66%.