Market Drifts, Dow Rises Puny 2.2 on GNP Report
The stock market drifted in a narrow range today in an inconclusive response to the latest data on the state of the economy.
The Dow Jones average of 30 industrials edged up 2.20 to 2,3889.11.
Advancing issues just nosed out declines on the New York Stock Exchange, with 719 up, 686 down and 537 unchanged.
Big Board volume totaled 146.09 million shares, against 165.43 million in the previous session.
The NYSE’s composite index rose .15 to 171.75.
Analysts concluded that the figures in the Commerce Department report on the gross national product provided support for the belief that economic growth has been losing momentum as the Federal Reserve has sought to restrain inflation.
But the inflation figures that accompanied the GNP report were not so encouraging, brokers said, indicating that prices were still rising at a 5% to 5.5% annual rate.
Bond prices turned narrowly mixed in moderate early trading today after the government released its report on first-quarter economic growth.
The Treasury’s bellwether 30-year bond was unchanged in price, while its yield held steady at 8.95%. Shorter-term securities also showed little movement.
Drexel Burnham Lambert Inc. economist Maria F. Ramirez said the market showed little reaction to the Commerce Department’s quarterly gross national product report because some of the data was contradictory.
“The report did not indicate a need for easier or tighter monetary policy by the Fed,” she said.
Secondary Market
In the secondary market for Treasury bonds, prices of short-term governments ranged from 1/32 point higher to 1/32 point lower by midday and intermediates and long-term maturities ranged from 11/32 point to 5/32 point lower, according to the Telerate Inc. financial information service.
The movement of a point equals a change of $10 in the price of a bond with a $1,000 face value.
Corporate issues were modestly higher. Moody’s investment grade corporate bond index, which measures total return on a portfolio of 80 corporate bonds with maturities of five years or longer, rose 0.40 to 303.12.
