Stocks Mixed in Lethargic Trading; Dow Dips Fraction
Stock prices closed mixed and financial markets generally marked time with little change on Tuesday, as investors awaited clearer signs on the economy after a report of unexpectedly weaker February durable goods orders.
The Dow Jones index of 30 industrials, which fell 20.23 points Monday in the slowest trading of the year, vacillated in a tight range and ended down 0.99 point to 2,066.15. Most broader market indicators rose marginally.
Durable goods, down 1.8%, dropped for a second consecutive month, but traders were reluctant to give up on the conventional wisdom that the economy is healthy.
Economic uncertainty and resilient anxiety about the market’s condition five months after the October crash generally were blamed for another slow trading day.
“There is absolutely no interest in the broad section of stocks with the exception of takeover targets,” said John J. Muldowney, manager of equity and over-the-counter trading at Scott & Stringfellow Inc. in Richmond, Va. “I think that overall, there is a belief that maybe this thing’s not over and people are just taking a wait-and-see attitude.”
Volume on the New York Stock Exchange totaled 142 million shares, slightly more than the 128.83 million shares traded Monday.
‘Very Slow’ Pace
In another similarity to the previous session, the stock market mirrored the behavior of the bond market, a sensitive barometer of the economy’s health. Bond prices finished barely changed, reflecting uncertainty over whether interest rates will rise, drop or stabilize.
“We’re right on the top of the fence and don’t know which way we’re going to fall,” said Robert O’Toole, manager of over-the-counter trading at Shearson Lehman Hutton in New York. “It’s very slow. The only thing good is that when the market’s down, volume dries up. That indicates there’s not much selling.”
Key economic reports on the consumer price index and revised gross national product reports are due today, dealers noted.
As with the previous session, the big winners were rumored and actual takeover targets, led by Lucky Stores, which jumped 14 1/2 to 46 3/4 in heavy trading after American Stores offered $45 a share for the supermarket company. American Stores fell 2 5/8 to 57 7/8.
Federated Department Stores rose 2 3/8 to 69 after Canadian developer Campeau raised its offer for the retailer. Other prominent speculative takeover-related stocks included Pillsbury, up 1 1/2 to 45 3/4, and Kroger, up 1 1/2 to 36.
Resorts International gained 3 5/8 to 32 after entertainer Merv Griffin raised his offer for the casino company to $35 a share in a takeover battle with New York real estate developer Donald J. Trump.
Among the blue chips, Merck rose 2 to 160 1/2, IBM fell 5/8 to 113 1/8, Primerica rose 3/4 to 31 3/8 and Exxon fell 5/8 to 43 1/2.
Stocks Dip in London
Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 170.57 million shares.
The number of advancing stocks narrowly outnumbered declines in composite trading on the New York Stock Exchange, with 765 up, 736 down and 481 unchanged.
Large blocks of 10,000 or more shares traded on the NYSE totaled 3,086, compared to 2,574 on Monday.
The Wilshire index of 5,000 equities closed at 2,663.535, up 2.035.
The NYSE composite index of all listed issues rose 0.05 to 151.52.
Standard & Poor’s index of 400 industrials fell 0.02 to 312.02, and S&P;’s 500-stock composite index rose 0.10 to 268.84.
At the American Stock Exchange, the market-value index rose 0.62 to 298.80. The NASDAQ composite index for the over-the-counter market rose 1.19 to 379.76.
Share prices closed narrowly mixed Tuesday on the London Stock Exchange, with many stocks depressed by continued thin trading in the opening days of an extended trading account period.
The Financial Times 100-share index was down 5.7 points at 1,835.4 at the close, its worst level for the day.
In Tokyo, the Nikkei 225-share index closed at 25,842.75, down 123.51.
