WALL STREET Record high after Friday spree

Press, 3 February 1986, Page 32

WALL STREET Record high after Friday spree

NZPA-AP New York The New York stock market climbed to a record high on Friday. The buying spree was attributed to hopes for lower interest rates. In credit-market activity, prices of long-term U.S. Government bonds, which move in the opposite direction from interest rates, rose moderately. The Dow Jones average of 30 industrials jumped 18.81 points to close at 1570.99, surpassing the previous closing peak of 1565.71 reached on January 7. For the week the average gained 41.06 points. Advancing issues outnumbered declines by more than two to one on the New York Stock Exchange. The bull trend was noticeable throughout the week. On Tuesday, lower energy costs and growing optimism that interest rates would drop sent the market surging ahead, despite a brief jolt caused by the crash of the space shuttle, Challenger. The Dow Jones rose 18.81 points to close at 1556.42, the biggest oneday jump since December 13, when the indicator rose by 23.97 points. Wall Street analysts said the market’s ability to shake off a tragedy of major proportions attested to what they called an underlying strength in stock prices, which often are influenced by emotions and the national mood. “The market has ignored the tragedy,” said Mr Peter Dapuzzo, manager of the retail equities

unit at Shearson Lehman Brothers, a New York investment firm. "If the market were nervous, this could have caused a major sell-off.” The recent decline in oil prices, which initially hurt stock prices, is now viewed increasingly as a benefit because it will likely mean lower inflation and lower interest rates, a boost to economic growth. There is increasing optimism that the Federal Reserve System will ease American credit conditions. On Wednesday the market posted some scattered gains but bogged down after making a run at new highs. Trading was heavy. The Dow Jones average rose only 2.52 points, its fifth successive gain. A pullback late In the session was ascribed to rumours, quickly denied by the Federal Reserve Board, that Mr Paul Volcker, the board chairman, had ruled out the chance of any cut in the U.S. discount rate in the near future by the American Central Bank. The New York Stock Exchange and other markets observed a moment of silence at 11 a.m. in remembrance of the crew of the space shuttle, Challenger. On Thursday, the market showed some spotty losses, hesitating after a week-long rally. Dow Jones dropped 6.76 points to close at 1552.18. But advances outpaced declines about six to five on the New York Stock Exchange. Before the ■ market opened, the U.S. Com-

ilicrcc vcpai uiiciiv * ported that the index of leading U.S. economic indicators rose 0.9 per cent in December. The increase in the index, which is designed to detect future economic trends, provided new evidence that growth of business activity remained on track. Prices of a selection of stocks on Friday: Alcan Alu 31%, Alcoa 42, Amerad Hes 24%, AmExpress 5614, AmMotors 2%, ATT 21%, Armco 10%, Asarco 20%, Atlßich 52%, BethStl 17%, Boeing 48%, Borden 52%, Burroughs 67%, Chrysler 46%, Citicorp 49%, Coca Cola 83%, Colgate 32%, CBS 114%, ContlGrp 19%, Crane 38%, DarKrft 41%, ‘ Digital 154, Disney 118%, Dome Mines 10%, Dow Chem 42, DuPont 65%, East Kodak 48%, Englhrd 25%, Exxon 51%, Firestone 23%, Fluor 15%, Ford 62%, Frpt McMor 16%, GenDynam 70, GenElec 70%, GM 74, Gen Tire 68%, Goodyear 32%, Greyhound 33%, Grumman 27%, Gulf Oil 12%, Haliburton 24%, Homestake 25%, Honeywell 75%, IBM 151%, IntlHarv 9, INCO 14%, ITT 38%, Lockheed 46%, Manville 7%, JhsnJhsn 53%, KalserAlu 17, KMart 36%, McDonalds 79%, McDonDoug 77%, MGM 23%, MMM 90%, Mobil 29%, Monsanto 49%, NCR 43%, NewmMin 50%, Pfizer 48%, PhelDodge 25%, Phil Pete 10%, Polaroid 50%, RCA 61%, Raytheon 55%, ReynMetal 40%, RoylDPet 62%, Seagrams 47%, Seasßoe 39%, Shellßt 37%, Sperry 48%, Chevron 36%, Amoco Corp 56%, Sohio 47%, Texaco 28%, Texaslnst 109%, UnionCarb 82%, USSteel 23%, WestgEle 44%, Woolworth 62%, Xerox 64%, Schlumberger 31%, MerrylLynch 41%, Occidental 28%, Heinze 29%, Cievel’dCliff 19, Int Nth 44%, AmAirlines 47%.