Stocks Bounce Back to Close Mixed; DJ Up 5
The stock market bounced back from an early sell-off to finish mixed Wednesday.
Analysts attributed the market’s swings to shifting views of the outlook for world oil prices.
The Dow Jones average of 30 industrials, down more than 12 points in early trading, was up 5.15 at 1,795.26 by the close.
Volume on the New York Stock Exchange slowed to 145.30 million shares from 167.39 million Tuesday.
Energy issues chalked up broad gains on the theory that oil prices might have hit bottom. Mobil climbed 1 to 29 3/8, Chevron 1 1/8 to 37 5/8, Exxon 3/4 to 56, Atlantic Richfield 1/2 to 53 and Occidental Petroleum 7/8 to 25.
Bank Stocks Slip
General Motors, which ordered production cutbacks, dropped 3/4 to 83.
Bank stocks ran into profit taking after a strong showing in recent weeks. Citicorp slipped 5/8 to 60 3/4, Manufacturers Hanover 1 1/8 to 52 1/2 and J. P. Morgan 7/8 to 76 1/8.
Several Japanese issues advanced, with Matsushita Electrical up 4 at 84, Honda Motor 4 at 65 and Hitachi 1 7/8 at 46 5/8. The Tokyo stock market has traded at record highs lately, and analysts say American investors’ interest in Japanese issues has been heightened by the decline of the dollar against the yen.
In the overall tally on the Big Board, about six issues fell in price for every five that advanced.
Large blocks of 10,000 or more shares traded on the NYSE totaled 2,785, compared to 3,210 on Tuesday.
Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 171.33 million shares.
Standard & Poor’s index of 400 industrials rose 0.85 to 260.22, and S&P;’s 500-stock composite index was up 0.57 at 235.71.
In the credit market, government and corporate bond prices recouped early losses and most issues finished trading with solid gains. Interest rates fell back.
Bond prices advanced in the afternoon as dealers who had earlier been selling to acquire profits decided to become buyers again.
The bond market had suffered somewhat in the morning amid disappointment over a comment by Bank of Japan Governor Satoshi Sumita that he does not plan to reduce the country’s discount rate.
30-Year T-Bill Gains
The price of the 30-year Treasury bond, down as much as 1 points in early dealings, wound up with a gain nearly a full point, or $10 for each $1,000 in face amount. The yield on the bond finished at 7.39%, down from 7.46% late Tuesday.
In the secondary market for U.S. Treasury securities, prices of short-term governments ranged from down 3/32 point to up 1/32 point and intermediate maturities rose by 1/16 point to 11/16 point. The 20-year bond gained 21/32 point, according to the investment firm of Salomon Bros.
In corporate trading, industrials tumbled 1 point in busy trading and utilities pulled back about 3/8 point in lighter trading.
Among tax-exempt municipal bonds, general obligations dropped 3/4 point and revenue bonds slid 1/2 point in moderate activity.
Yields on three-month Treasury bills rose two basis points to 6.33%. Six-month bills held at 6.31%, while one-year bills were also unchanged at 6.26%.
The federal funds rate--the interest on overnight loans between banks--traded at 7.313% late in the day, compared to 7.438% late Tuesday.
