Dow Rises 5.64 in Sluggish Trading
The stock market took its cue from the ascending government bond market and rose Friday in lackluster trading dominated by institutional investors buying and selling heavily to mop up quarterly dividend payments.
The Dow Jones industrial index, which had swung widely and closed down more than 22 points Thursday, moved in a tight range throughout the day and ended 5.64 points ahead at 2,023.21. For the week, the Dow was up 8.62.
Advancing issues outpaced declines by about 5 to 4 in the daily tally on the New York Stock Exchange. Big Board volume totaled 158.06 million shares, down from Thursday’s 213.89 million. The NYSE’s composite index added 0.40 to 147.70.
“This was basically a very dull market,” said trader Bill Lord of Shearson Lehman Hutton. “It was up 5 or down 5 all day and didn’t deviate from that pattern.”
Analysts said many traders were disappointed at the market’s inability to surpass its highs of early January, as measured by the Dow. The index seemed to be headed toward new highs for the year Thursday morning, but the advance gave way to selling.
While evidence continues to accumulate that the economy hasn’t yet suffered any severe effects from the October crash, brokers say confidence remains fragile.
The Labor Department’s report Friday morning that the consumer price index rose 0.3% in January was in line with advance estimates, and had little apparent impact on the market.
Federated Department Stores rose 1 3/8 to 64 1/2 on news that the company, which has been fighting a takeover bid by Campeau Corp. of Toronto, was negotiating with Campeau on a proposed purchase at $68 a share.
Eastman Kodak gained 1/2 to 42 1/2 in active trading. On Thursday, the company said it expected its earnings for 1988 to be better than estimates published lately by some analysts.
Other gainers among the blue chips and technology issues included International Business Machines, up 1 at 115 3/4; Hewlett-Packard, up 1 at 61; Philip Morris, up 1 at 91 7/8, and General Electric, up 5/8 at 43 5/8.
On the downside, Merck dipped to 161; American Telephone & Telegraph slipped to 29, and Coca-Cola fell 5/8 to 36 7/8.
Ausimont NV jumped 3 to 23. The company denied rumors that it was being pursued as a takeover candidate by Minnesota Mining & Manufacturing.
Wells Fargo Mortgage and Equity Trust fell 1 1/8 to 15 3/4. The real estate investment trust said it had decided not to proceed with a plan to liquidate after negotiations ended to sell its property investments to Cal Fed.
Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 181.90 million shares.
London Prices Drop
Standard & Poor’s index of 400 industrials rose 1.02 to 302.63, and S&P;'s 500-stock composite index was up 0.88 at 262.46.
The NASDAQ composite index for the over-the-counter market dropped 0.22 to 363.40. At the American Stock Exchange, the market value index closed at 284.32, up 1.03.
Share prices dropped on the London Stock Exchange Friday as investor sentiment turned sour and trading volume thinned.
The Financial Times 100-share index was down 15.9 points at 1,766.5 at the close.
In Tokyo, stock prices closed up for the 12th consecutive session, propelled by a more stable dollar, good domestic economic growth, and promising company profits, brokers said.
The key Tokyo share index rose 64.52 points, or 0.26 per cent to 25,165.18.