Dow Off 6.40; Stocks End 3rd Quarter Lower
The stock market closed out the third quarter of 1988 in typically indecisive fashion Friday, yielding to some late selling after a broad early advance failed to stand up.
The Dow Jones average of 30 industrials, up about 18 points at its mid-session high, closed with a 6.40 loss at 2,112.91.
That left the average up 22.23 points for the week, but down 18.67 from its midyear level three months ago.
Advancing issues outnumbered declines by about 4 to 3 in the daily tally of nationwide trading in New York Stock Exchange-listed stocks, with Big Board volume rising to 175.75 million shares, up from Thursday’s 155.79 million.
Analysts said many traders were pleased to see stock prices show signs of life Thursday, when the Dow Jones industrials climbed 33.78 points after a protracted period of little movement on low volume.
But they also said many market participants remained skeptical that any fundamental shift had taken place in investors’ mood.
‘Window Dressing’
Traders said the steady decline in stock prices in the last half-hour of trading on Friday was partly due to profit-taking and the winding down of positions before the end of the third quarter.
“This is a pure case of profit taking after a day of window dressing,” said Donald Crooks, a trader with Morgan Stanley & Co. “The market is not ready to make a major move.”
The government reported Friday morning that the index of leading economic indicators rose 0.4% in August.
The index, which is designed to detect future economic trends, has been bouncing around erratically this year, and brokers said investors were reluctant to infer much from its latest monthly reading.
Energy stocks were weak as oil prices fell on talk of increasing production among members of the Organization of Petroleum Exporting Countries. Exxon lost 1/2 to 44 3/4; Amoco dipped 1/2 to 73 3/4; Mobil was off to 42 5/8; Texaco edged down 1/8 to 45, and Atlantic Richfield fell 1/8 to 77 3/8.
Advanced Micro Devices dropped 1 1/2 to 9 in active trading. The company said its earnings for the third quarter might fall short of second-quarter levels and announced plans to cut its work force, citing disappointing sales.
Cadnetix climbed 1 1/2 to 8 3/4 among the volume leaders in the over-the-counter market. Daisy Systems said it was making an $8-a-share tender offer for control of the company.
Foreign Markets Mixed
Tokyo stock prices finished higher Friday, reflecting investor confidence that interest rates will not rise, brokers said.
The Nikkei 225-share index rose 223.54 to 27,923.67. The index rose more than 100 points in the last hour of trading. It lost 51.88 points on Thursday.
Stocks closed mixed London, reflecting an absence of external news and a sluggish performance on Wall Street.
The Financial Times 100-share index lost 2.5 points to close at 1,826.5.
