Stocks Mixed in Active Trading; Dow Gains 2
The stock market finished mixed Tuesday as blue-chip issues slowed the slide of the previous session.
The Dow Jones average of 30 industrials, down 13.22 points Monday for its biggest loss in more than six weeks, recovered 2.24 to 1,346.10.
Volume on the New York Stock Exchange picked up to 102.27 million shares from 95.96 million Monday.
Analysts said Monday’s drop prompted some further selling early Tuesday to cash in profits from the market’s late spring and early summer rally.
Eastern Airlines, subject of some favorable comment in a Wall Street Journal article, rose 3/8 to 9 5/8 and led the NYSE active list on turnover of more than 1.75 million shares.
Xerox Heads Higher
Xerox gained 1 to 53. The company reported second-quarter earnings from continuing operations of $1.11 a share, up from 79 cents in the comparable period last year, and said it expected to show increases for the third and fourth quarters as well.
Among other office-equipment and technology issues that sold off in Monday’s trading, International Business Machines rebounded 7/8 to 130 1/2, Digital Equipment rose 1 5/8 to 100 7/8 and Texas Instruments rose 1 3/4 to 104.
Tonka, which said its second-quarter profits jumped to $1.40 a share from 15 cents in the like year-ago period, climbed 3 1/2 to 28.
Union Carbide added 1 1/2 to 52 3/4. The company said it was reorganizing its operations to emphasize growth opportunities.
U.S. Steel, which posted lower second-quarter earnings but also raised its quarterly dividend to 30 cents a share from 25 cents, gained 1/2 to 30 1/2.
In the daily tally on the Big Board, declining issues outnumbered advances by about five to four.
More Block Trades
Large blocks of 10,000 or more shares traded on the NYSE totaled 2,100, compared to 1,710 on Monday.
The federal funds rate, the interest on overnight loans between banks, traded at 7.438%, down from 7.563% late Monday.
Bond prices and interest rates were narrowly mixed as the credit markets awaited details on the federal government’s upcoming borrowing plans.
The Treasury is scheduled to announce today details of its quarterly refunding operation, which credit analysts said could total between $21 billion and $22 billion of new notes and bonds.
Demand for the Treasury’s new securities will be closely watched, analysts said, because the dollar’s recent decline has triggered suggestions that foreign investors might be reluctant to maintain their heavy purchases of dollar-denominated investments.
In the secondary market for Treasury bonds, prices of short-term governments slipped 3/32 point, intermediate maturities rose 2/32 point and long-term issues were down 2/32 point, according to the investment firm of Salomon Bros. The movement of a full point is equivalent to a change of $10 in the price of a bond with a $1,000 face value.
In corporate trading, industrials and utilities were little changed in light trading, Salomon Bros. said.
Among tax-exempt municipal bonds, general obligations and revenue bonds lost point, also in light dealings, Salomon Bros. said.
Yields on three-month Treasury bills, meanwhile, edged up 2 basis points to 7.27%. Six-month bills rose 5 basis points to 7.46%, and one-year bills were up 2 basis points at 7.54%. A basis point is one-hundredth of a percentage point.
Yields on 30-year Treasury bonds were quoted at 10.77%, unchanged from late Monday.