Dow Falls 14.11, Ringing Out ’88 on a Sour Note

Wall Street blue chips ended the year with a whimper, stumbling Friday in their bid to finish 1988 at the highest levels since the October, 1987, crash. Stock prices faded steadily in the afternoon as the overall market posted a mixed finale to a year in which many indicators posted double-digit gains.

The Dow Jones average of 30 industrials, up 20 points in the previous two sessions to within a point of its highest closing level since the market crash more than 14 months ago, lost 14.11 points to close at 2,168.57.

That left the market’s best-known barometer with a decline of 0.36 for the week but with a gain of 229.74 points, or 11.85%, for the year.

It was also the first year that the Dow Jones industrial average has finished above the 2,000 mark.

Advancing issues outnumbered declines by about 3 to 2 in New York Stock Exchange trading, with Big Board volume dipping to 127.21 million shares, down from 131.29 million on Thursday.

‘Vacuum’ in Market

As the session got under way, the Dow Jones industrials moved above the year’s closing peak of 2,183.50 set on Oct. 21.

But the index turned lower by mid-morning, holding at a slightly lower level until mid-afternoon, when it began a steady erosion toward the close.

Brokers said many participants had already wrapped up commitments for the year, leaving a vacuum in Friday’s market. They also said some last-minute tax-related selling may have been responsible for the blue chip decline.

Traders and market analysts said the disappointing blue chip finish was related more to lack of buyers than to any significant selling pressure.

Many analysts expect prices to head higher next week.

Analysts also cited profit-taking, program selling by professional traders, a rise in oil prices and weakness in the dollar for the stock market’s performance.

Anacomp was the second most-active issue and was the biggest percentage loser as it fell 1 1/4 to 6 3/4. The company announced lower earnings from operations for its fourth fiscal quarter.

Reebok rose 3/4 to 12 1/4 as takeover rumors circulated.

The automobile stocks fell. General Motors fell 1 3/4 to 83 1/2, Ford Motor lost 1 to 50 1/2 and Chrysler fell 3/4 to 25 3/4.

The Wilshire index of 5,000 equities closed at 2,738.421, down 7.144 from the preceding trading day. For the year, the Wilshire index rose $318 billion, or 13.1%.

The NYSE’s composite index of all its listed common stocks fell 0.64 to 156.26 but finished the week with a 0.20 gain and was up 13% from 1987.

Standard & Poor’s industrial index fell 2.12 to 321.26, and S&P;’s 500-stock composite index lost 1.68 to 277.72.

The NASDAQ composite index for the over-the-counter market rose 2.33 to 381.38. At the American Stock Exchange, the market-value index closed at 306.01, up 2.32.