Dow Gains 7 Points as Stock Sell-Off Abates
Stock prices gained ground in subdued trading Monday, steadying after the sudden sell-off that hit the market last week.
The Dow Jones average of 30 industrials, down 35.67 points last week, rose 7.00 to 1,520.53.
Volume on the New York Stock Exchange slowed to 108.68 million shares from 122.78 million on Friday.
Analysts said many traders were waiting cautiously to see how the market will react if, as is widely expected, it is confronted with more news of a strengthening economy this week.
Upbeat News Started Slide
Last week’s slide was touched off by word that the unemployment rate had fallen to its lowest level in more than five years. Though that news was upbeat for business conditions generally, it was also taken as a distinctly negative portent for interest rates.
Among the items on the agenda for the markets this week are the government’s monthly reports on retail sales, due out today, and industrial production, scheduled for Thursday. It would come as no surprise on Wall Street if either or both of those figures provide further signs of increasing economic growth.
Sterchi Bros. Stores jumped 10 1/8 to 32. The company said Heilig-Meyers Co. made a $31-a-share offer for all of its outstanding common stock.
Comdisco fell 1 1/2 to 18 7/8. Late last week the company said it was contesting an Internal Revenue Service assessment of $200 million in back taxes and interest.
Texaco, the volume leader on turnover of more than 1.3 million shares, slipped 1/2 to 31 and Pennzoil was down 2 at 69.
In the oil drilling and service sector, Schlumberger fell 1 1/2 to 35 and Halliburton 1 3/8 to 25 5/8. Analysts said investors were apparently fearful of more earnings disappointments in the industry, which has suffered along with the depressed energy economy.
Walt Disney Productions gained 5 1/2 to 120. Late in the day the company announced a 4-for-1 stock split and a dividend increase.
Considering a Spinoff
GTE was actively traded, unchanged at 47 1/2. The company is reported to be considering spinning off its Sprint long-distance telephone business, which has been recording large operating losses.
Advancing issues outnumbered declines by about nine to seven in the overall tally on the Big Board.
In the bond market, government bond prices suffered further losses and interest rates continued to creep higher as bond traders also waited for fresh information about the economy.
