Dow Dips 3.11 After 2 Rally Attempts Fizzle
Stock prices closed mixed Monday after profit takers snuffed out two bids to extend the market’s recent advance to record highs.
The Dow Jones average of 30 industrials, up more than 7 points at mid-morning and about 9 points at 3 p.m. EST on Wall Street, finished with a 3.11-point loss at 1,818.61.
Some other, broader market measures posted slight gains.
Volume on the New York Stock Exchange dropped off to 134.44 million shares from 178.10 million last Thursday.
Energy Stocks Fall
Energy stocks declined as the price of oil continued its slide. Amoco lost 1 1/8 to 58 5/8, Chevron 7/8 to 36 1/2, Exxon 1/2 to 55 3/4, Mobil 3/4 to 28 and Atlantic Richfield 5/8 to 51 3/4.
Precious metals issues also were weak as gold and silver prices fell. Homestake Mining was down 1 1/2 at 23 1/8, ASA Ltd. 1 5/8 at 35 1/2, Campbell Red Lake Mines 7/8 at 17 3/8 and Callahan Mining 1 3/8 at 17 5/8.
At the same time, savings and loan issues benefited from renewed declines in long-term interest rates. Columbia Savings & Loan climbed 2 7/8 to 34, Gibraltar Financial 3/4 to 12, Glenfed 1 1/8 to 23 1/8, Great Western Financial 1 1/2 to 45 and H. F. Ahmanson 3/4 to 67 3/4.
Black & Decker fell 1 5/8 to 21 7/8. Late last week, the company said it expects to report only a small profit or a loss for the fiscal quarter that ended Sunday.
IBM a Standout
International Business Machines was a standout, gaining 2 3/8 to 151 1/2. Barron’s weekly carried enthusiastic comments on the stock from Barton Biggs, a prominent investment strategist at Morgan Stanley.
In the daily tally on the Big Board, advancing issues held a very slight edge on declines. The exchange’s composite index eked out a 0.02 gain to 137.71.
Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 161 million shares.
Large blocks of 10,000 or more shares traded on the NYSE totaled 2,369, compared to 3,356 on Thursday.
Standard & Poor’s index of 400 industrials lost 0.36 to 263.51, and S&P;’s 500-stock composite index was down 0.07 at 238.90.
In the secondary market for Treasury securities, prices of short-term governments moved up by 7/32 point to 5/16 point, while intermediate maturities rose by 11/32 point to 13/16 point. The 20-year bond spurted by 23/16 point, according to the investment firm of Salomon Bros.
In corporate trading, utilities climbed 3/4 point and industrials rose 1 point in active trading.
