WALL STREET Dow Jones over 1600

Press, 10 February 1986, Page 32

WALL STREET Dow Jones over 1600

After three steady days Wall Stneet stock prices rose sharply on Thursday and Friday, with the Dow Jones Index of industrial shares closing at 1613.42 — a record. Volumes averaged almost 150 million shares a day. Earlier, Wall Street’s best-known indicator plunged to the 1583 level when a judicial panel in Washington ruled as unconstitutional a central provision of the Gramm-Rudman-Hollings law, which requires a balanced Federal budget by 1991, but the indicator recouped the loss within an hour.

“I think 1986 is going to be a very, very big year and I don’t think the Gramm-Rudman thing is going to have much of an effect,” said John Smith of Fahnestock and Company, a Wall Street investment firm. “The market always gets back to the basics, earnings and dividends.”

Analysts said investors found no great surprises in President Reagan’s State of the Union message on Tuesday, or the budget proposal he sent to

Congress. They said investors were once again trying to sort out both the positive and negative effects of falling oil prices. Oil prices have tumbled to six-year lows this week on signs that major producers are inclined to step up production to maintain revenues rather than try to defend their pricing structure. Analysts say lower energy prices are expected to stimulate the U.S. economy, acting in much the same way as a tax cut. The drop in oil prices comes at a time when business activity in this country already appears top be gathering momentum. It also holds out the promise of low inflation, even though growth is picking up. At the same time, it raises questions about the outlook for energy industries and the banking system, with its many energy loans.

Closing prices in U.S. dollars on Friday of a selection of issues were: Alcan, 31%; Alcoa, 44%; Amerad Hes, 23%; Am Express, 59%; Am Motors, 2%; ATT 21%; Armco 9%; Asarco

20%; Ad Rich 52%; Beth Stl S 18%; Boeing 48; Borden 53; Burroughs 69%; Chrysler 48%; Citicorp 47%; Coco Cola 84pJ GJlgate 33; CBS 114%; J Conti Grp 48%; Crane 39%; ..*» Dar and Krft 43; Digital Eq 159; Disney 119%; Dome Mines 10%; Dow Chem 43%; n Du Pont 66%; East Kodak 50%; Englhrd 25%; Exxon 50; Firestone 23%; Fluor 15%; Ford 64%; Frpt McMor 15%; Gen Dynam 72; Gen Elec 74%; Gen Motors 74%; Gen Tire 70%; Goodyear 33%; v* Greyhound 32; Grumman 27; * Gulf Western 51%; Haliburton 24%; Homestake 24%; g* Honeywell 77%; IBM 155%; Inti Harv 9%; INCO 14%; K, Intl’l TandT 39%; Lockheed K 47%; Manville . 7%; JhnsandJhsn 53%; Kaiser Alu £* 16%; K Mart 38%; McDonald’s 82; McDon Doug 77%; MGM 24%; MMM 94%; Mobil 28%; Monsanto 49%; Xj NCR 45; Newm Mln 47%; Pfizer 49%; Phel Dodge 25%; Phil Pet 10; Polaroid 52; RCA 61%; Raytheon 58%; ■ Reyn Metal 42%; Royl D Pet 62%; Seagrams 47%; Seas Roe *3. 40%; Shell Rt 37%; Sperry Cp 50%; Chevron 35%;,Am0c0, 56%; S Oil Ohio 45%; Texaco 26%; Texas Inst 122%; Uncal 22%; Union Carb 83%; US CtSteel 22; Westg Ele 45%; Wwths 65%; Xerox 65%; ■£* Schlumberger 31%; Merryl Lynch 38%; Occidental 27%; Heinz 31%; Clevel’d Cliff J* 17%; Inter-north 41%; Amer b Airlines 50. ' '.H