Market Retreats Slightly; Dow Industrials Slip 1.92
The stock market recorded a small loss today after faltering for the second straight session at the 1,800 level in the Dow Jones industrial average.
The Dow index of 30 blue-chip stocks declined 1.92 to close at 1,787.95.
Volume on the New York Stock Exchange came to 151.4 million shares. Declining issues slightly outnumbered advancing ones on the NYSE.
In Tuesday’s trading, the Dow Jones industrials touched 1,800 for the first time. After that the market pulled back, although it still finished with a 13-point gain.
Opinions on Wall Street were widely divided about whether Dow 1,800 would turn out to be an important psychological stumbling block for the long bull market in stocks.
Some observers contend that it is likely to be a difficult obstacle. Others argue that professional traders taking their cues from fluctuations in stock-index options and futures could quickly propel the market past that level.
Several of those options and futures expire at the end of this week. The approach of that “witching hour” could well keep the market volatile between now and then, brokers said.
Most bond prices slipped in early trading today while interest rates were little changed.
Government securities gave back gains recorded late Tuesday after the government unveiled a financing package that did not include an auction of 20-year bonds, as had been expected.
The financing operation includes an auction of $7 billion in four-year notes next Tuesday and a sale of $6.5 billion in seven-year notes the following day.
Speculation about whether major oil producing nations will succeed in stabilizing crude prices preoccupied traders, analysts said, adding that the government’s latest evaluation of the economy’s performance in the fourth 1985 quarter was almost ignored.
On the domestic front, traders paid little attention to the Commerce Department report showing the economy grew at a 0.7% annual rate during October through December, not 1.2% as estimated last month.
In corporate trading, industrials were unchanged in quiet trading and utilities gained point in light volume.
