Market Caps Strong Week With Another Gain; Dow Rises 16.99
The stock market capped off its best week in more than two months with another advance Friday.
Trading was moderate heading into the long Memorial Day weekend.
The Dow Jones average of 30 industrials, up 31.13 points Thursday, climbed another 16.99 to 1,823.29. That left the average with a net gain of 63.49 for the week, its largest since it rose a record 92.91 points on March 10-14.
Volume on the New York Stock Exchange came to 130.16 million shares, down from 144.92 million on Thursday.
Analysts said there was no readily apparent news development to account for the market’s revival Thursday. But, in the view of many Wall Streeters, rallies that have no convenient “explanation” are often significant, because they can represent something more than just a short-term response to some news item.
During Friday’s activity, Albert Wojnilower, economist at First Boston Corp., predicted further declines in open-market interest rates this year.
In a speech delivered at a meeting of bond dealers in Singapore, Wojnilower also said he expected the Federal Reserve to lower its discount rate at least one more time this year. By 1987, however, he said that economic growth and inflation are likely to heat up, leading to an upswing in long-term interest rates.
Among actively traded blue chips, International Business Machines rose 1/2 to 143 7/8, Eastman Kodak 7/8 to 58 7/8 and General Electric 1 7/8 to 79 7/8.
Upjohn gained 5 1/8 to 94. The company said Thursday that it hopes to be able to market one of its drugs as a treatment for male baldness as early as next year.
Auto issues were mixed as domestic manufacturers reported an aggregate 2.4% decline in car sales for mid-May. General Motors rose 7/8 to 77, but Ford Motor lost 1 to 78 and Chrysler was down 1 1/8 at 37 3/4.
Securities-industry stocks were mostly higher, with Morgan Stanley up 1 1/2 at 88 1/2, Bear, Stearns up 1 at 33 3/4, Salomon Bros. up 1 1/8 at 53 3/4 and Paine Webber up 1 3/8 at 37 3/4.
C. H. Masland & Sons, traded on the American Stock Exchange, was up 2 7/8 at 68 3/8. Burlington Industries began its previously announced $68-a-share offer to acquire the company.
At the Amex, the market value index closed at 277.98, up 1.76, setting a record high for the second straight day.
In the bond market, government bond prices rose in a mild rally.
The Treasury Department’s key 30-year bond went up about $7.50 for each $1,000 in face value, and its yield dropped to 7.45% from 7.50% late Thursday. Shorter-term issues also rose by smaller margins.
All stock and commodity markets will be closed Monday in observance of Memorial Day. Banks, government offices and many businesses also will be closed. The government’s weekly Treasury bill auction will be delayed until Tuesday. There will be no Business section Monday; the tables and features that regularly appear Monday will run in Tuesday’s Business section.
