Dow Average Up 3.75; Market Ends Wild Week on Quiet Note
Wall Street ended a hectic week calmly Friday, with the Dow Jones industrial index edging up 3.75 to 2,570.17 in a market that was subdued by uncertainties about the interest rate outlook.
For the week, the Dow gained 45.53 points. But to achieve that total, it first fell 32 points, then rose 90 points in two days, including the biggest-ever one-day gain of 75 points. On Thursday, it fell back 19 points as interest rates came under new upward pressure in the credit markets. Rates were mixed in Friday’s activity.
Volume on the New York Stock Exchange came to 137.95 million shares, down from 162.15 million Thursday and the smallest total since 129.07 million shares changed hands Sept. 4, just before the Labor Day weekend.
The slowdown in activity over the past two sessions was attributed in part to the observance of Rosh Hashanah, the Jewish New Year.
Key Meeting on Weekend
Analysts said many traders were proceeding cautiously as they awaited meetings this weekend in Washington of finance ministers from the Group of Five and Group of Seven major industrialized countries. G-5 consists of the United States, Japan, West Germany, Britain and France, while the G-7 also includes Italy and Canada.
The sessions are expected to focus on such important questions for the market as trade policies and currency values in foreign exchange.
At the same time, opinions remain sharply divided among market analysts over whether the rally this week marked the end of the pullback that set in late last month.
There was growing apprehension during the week that Japan, and perhaps other countries, may tighten credit as the United States has already done.
Fears of tighter credit pressured stock and bond markets Thursday. But stock market losses were small, with investors in a bullish frame of mind after a 90-point recovery earlier this week.
In Friday trading, Irving Bank Corp. jumped 25 3/4 to 78. Bank of New York offered to acquire Irving for a package of cash and stock.
Takeover rumors and speculation prompted buying in several other issues, including Hershey Foods, up 3 at 35, and IC Industries, up 3 7/8 at 38.
Auto stocks were a notable weak spot. Ford Motor dropped 3 3/4 to 97, Chrysler fell 1 7/8 to 41 1/8 and General Motors lost 1/8 to 84 1/2. Analysts have described recent sales trends in the industry as disappointing.
Losers Edge Gainers
Some regional telephone issues, by contrast, gained ground. Pacific Telesis rose 1 1/8 to 31 3/4, Southwestern Bell gained 3/4 to 43 3/4 and U.S. West climbed 7/8 to 58 3/4. Southwestern Bell and U.S. West were among 43 NYSE issues hitting new 52-week highs, against 66 new lows.
Homestake Mining climbed 7/8 to 47 5/8. The company’s directors approved a 2-for-1 stock split and a dividend increase.
Trans World Airlines gained 1/2 to 33. TWA said it obtained financing of about $800 million, principally to finance its plan to go private.
Declining issues outnumbered advances by about 8 to 7 in the overall tally on the NYSE. The exchange’s composite index added 0.28 to 179.14.
Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 163.84 million shares.
Standard & Poor’s index of 400 industrials rose 0.11 to 373.89, and S&P;’s 500-stock composite index was up 0.44 at 320.16.
The NASDAQ composite index for the over-the-counter market gained 0.64 to 441.88. At the American Stock Exchange, the market-value index closed at 354.50, up 0.62.
In the credit markets, government bond prices posted modest gains in quiet trading, bolstered by expectations that major industrialized nations will reaffirm their support for the dollar in the weekend meeting of finance ministers.
The Treasury’s bellwether 30-year bond finished point higher, or $2.50 per $1,000 face amount. Its yield, which moves inversely to its price, declined to 9.66% from 9.69% late Thursday.
Corporate and municipal issues were unchanged.
The federal funds rate, the interest on overnight loans between banks, traded at 7.31%, down from 7.38% on Thursday.
