Stocks Hold to Narrow Range; Dow Dips 2.67 : Little Impact Seen From Drexel Case
The stock market hovered in a narrow range Thursday, showing few shock effects from the latest developments in Wall Street’s insider trading scandal.
But most stocks managed a gain, with the American and NASDAQ over-the-counter indexes higher, and New York Stock Exchange advances leading declines about 9 to 8 in nationwide trading of NYSE-listed stocks.
The 30-share Dow Jones industrial index declined 2.67 points to 2,063.12 after rising 64 points in the prior three sessions.
Volume continued to creep higher, as 149.4 million shares were traded on the Big Board, up from the 139.6 million traded Wednesday.
A rise in oil prices put a damper on the recent optimism over lower inflation. But analysts said the market showed internal strength in shrugging off insider trading charges against Drexel Burnham Lambert Inc.
Prior insider trading developments have sometimes caused turmoil in the market. Most analysts said the charges against the nation’s largest corporate securities underwriter was a mildly negative factor early on, putting pressure on takeover-related stocks. But some sort of charges against Drexel had long been expected.
Suffering From Apathy
George Pirrone, senior trader at Dreyfus Corp., said the news of the securities charges against Drexel, brought the matter “out into the open. People are relieved it’s coming to the surface.”
“The Drexel case probably made the market a little bit quieter than it might have been, but the market acted a bit better than a lot of people would have expected,” said William Nolan, head trader at S. G. Warburg & Co.
However, brokers added, it was evident that the market was still suffering from apathy and caution about the outlook for the economy and interest rates.
The big percentage riser was Ramada, which rose 2 1/8 to 9 3/4. The Pritzker family of Chicago said it proposed to acquire Ramada for $10 a share.
Irving Bank, which has said it submitted material to suitors besides Bank of New York, rose 1 1/2 to 68 5/8.
Traders said Merrill Lynch downgraded the semiconductor sector. Among the declining issues in the group were Motorola, down 1/8 to 41, and Intel, off 3/8 at 26 1/2.
Browning-Ferris Industries rose 1/2 to 27. On Wednesday, the company named William D. Ruckelshaus, former head of the Environment Protection Agency, as its chairman and chief executive.
Among the blue chips, Philip Morris rose 7/8 to 96 3/4 and International Business Machines added 3/8 to 112 1/8, while Exxon dipped 1/8 to 45 5/8 and General Motors lost 1/8 to 73 5/8.
Financial Corp. of America plunged 5/8 to 1/8, for an 83% drop. The company, whose American Savings & Loan Assn. is slated to be taken over in a government-assisted transaction, has been authorized by its directors to file a petition under Chapter 11 of the U.S. Bankruptcy Code.
Foreign Markets Mixed
The Wilshire index of 5,000 equities closed at 2,649.290, up 3.205.
The NYSE’s composite index of all its listed common stocks edged up 0.08 to 150.46.
Standard & Poor’s industrial index lost 0.05 to 304.67, and S&P;’s 500-stock composite index was up 0.01 at 265.88.
The NASDAQ composite index for the over-the-counter market gained 1.77 to 379.73. At the American Stock Exchange, the market-value index closed at 297.00, up 0.64.
Tokyo share prices climbed through the day in brisk trade Thursday, ending just near the high, as investors were encouraged by a stronger yen. The Nikkei 225-share index rose 236.10 to 27,740.11. It gained 183.50 points on Wednesday.
However, share prices closed lower on the London Stock Exchange as the market fretted again over the direction of domestic interest rates and the overall health of the British economy. By the end of the trading session, the Financial Times-Stock Exchange 100-share index was down 16.3 at 1,739.8.
