Stocks Mixed in Slow Trading; Dow Off 0.22
Stocks were mixed Monday in a lazy summer session in which trading dwindled to its lowest level in six weeks.
The Dow Jones average of 30 industrials slipped 0.22 to 1,312.50 after moving within a narrow range throughout the day. The Dow Jones transportation and utility averages moved ahead, however.
Gainers overall slightly led losers on the New York Stock Exchange, whose composite index gained 0.19 to 108.10. Telephone, auto, steel, oil and chemical issues led the advancing stocks.
Trading Dull
Big Board volume slowed to 67.93 million shares from 87.91 million on Friday. It was the quietest activity since 62.45 million shares changed hands July 5, which was a Friday following the Fourth of July holiday.
The dull session extended the market’s recent lackluster performance, which analysts have attributed to the typical summer lull in trading and to Wall Street’s uncertainty about the economy’s course.
“A lot of the so-called potential buyers are waiting around to see what comes out in the economy,” said Eldon Grimm, senior vice president at Birr, Wilson & Co.
Last week, the government issued several reports on the economy for July, but the market appeared to draw few conclusions and prices showed little reaction.
Some traders said they expect the same result this week when additional data, including a report on the second-quarter gross national product, are released.
Revlon Rises
In another of those reports, the Commerce Department said Monday that personal income rose 0.4% in July, an increase in line with economists’ expectations.
On the NYSE’s active list, Revlon climbed 7/8 to 45 5/8. Shortly before the close, Pantry Pride said it intends to offer $47.50 for each Revlon share, but Revlon’s chairman said the company was not for sale. Pantry Pride fell to 7 1/2.
Hewlett-Packard lost to 35 3/8 after reporting lower fiscal third-quarter earnings. Elsewhere in the computer sector, Burroughs rose 1/8 to 61 3/4, Data General fell to 35 3/8 and International Business Machines edged up 1/8 to 125 7/8.
Ford Motor rose 3/8 to 43 1/2 after announcing plans to match sales incentives offered last week by General Motors. GM climbed 1/2 to 66 3/8 and Chrysler moved up 1/8 to 35 7/8.
Exxon gained 1/8 to 51, the price at which a 772,000-share block crossed.
In the bond markets, prices edged higher as traders looked ahead to the Federal Reserve Board’s policy-making meeting.
The Federal Open Market Committee, scheduled to meet privately today, is confronted with a sluggish economy and a rapidly growing money supply.
Some analysts say the Fed will probably focus on the economic sluggishness and ease its monetary policy in order to stimulate the economy.
But others said the Fed cannot do that because an easier monetary policy would encourage faster money growth and risk higher rates of inflation.
In the secondary market for Treasury bonds, prices of short-term governments and intermediate maturities each edged up 3/32 point and long-term issues were up point, according to the investment firm of Salomon Bros. The movement of a point is equivalent to a change of $10 in the price of a bond with a $1,000 face value.
