Market Mostly Lower, but Retail Issues Gain
Retailing stocks attracted some enthusiastic buyers, but the rest of the market gave ground in a relatively quiet session Monday on Wall Street.
The Dow Jones average of 30 industrials, up 28.90 points last week, dropped 4.70 to 1,364.14.
Volume on the New York Stock Exchange slowed to 95.68 million shares from 107.08 million on Friday.
As trading began, top executives of R. H. Macy announced plans to make a $70-a-share buy-out offer for the company. Macy stock jumped 16 1/8 to 63 after a delayed opening.
The news of the proposed deal sent buyers scrambling after stocks of other retailing concerns. Allied Stores rose 2 5/8 to 59 5/8, Federated Department Stores 3 1/8 to 67 1/8, Carter Hawley Hale 1 3/8 to 29, Associated Dry Goods 1 3/8 to 36 1/2, May Department Stores 2 1/8 to 58 and F. W. Woolworth 2 to 52 5/8.
General Foods Climbs
The activity was reminiscent of the recent outburst of takeover speculation that occurred in food processing firms and other producers of consumer goods when General Foods emerged as the acquisition target of Philip Morris.
Some of those stocks continued to draw interest. General Foods, up 1/8 at 119 3/4, was joined on the list of stocks at 52-week highs Monday by issues such as Sara Lee, up 2 1/8 at 48 1/2, and Chesebrough-Pond’s, up 1 5/8 at 39 1/8.
Otherwise, analysts said the market was still plagued by doubts about the progress of the economy, despite the Dow Jones industrial average’s rise to record highs last week. Other, broader market indicators remain well below their midsummer peaks.
Figures released by the Commerce Department last Friday showed the savings rate at a record low in September. That added to recent fears that consumer spending was proceeding at an unsustainable pace and might slow significantly before long.
Beatrice dropped 7/8 to 45. Beatrice directors rejected a $45-a-share buy-out offer from the firm of Kohlberg Kravis Roberts.
Avon Products led the active list, down at 26. Avon said it bought a 2-million-share block of its stock at 26 3/4 as part of a previously reported plan to repurchase as many as 10 million shares.
Wendy’s International fell 1 to 15 1/8. The company said that it would have record profits for 1985 but that earnings growth for the year would fall short of the 15% to 20% goal set earlier.
In the daily count on the Big Board, nearly four issues declined in price for every three that advanced. The exchange’s composite index dropped 0.10 to 108.05.
