THE ECONOMY : Dow Rises 9.69; Rumors Rock Other Markets

The stock market turned in a mixed showing Friday, exhibiting few ill effects from the quarterly “triple witching hour.”

The Dow Jones index of 30 industrials rose 9.69 to 2,674.58, reducing its loss for the week to 34.96.

Big Board volume soared to 234.87 million shares from 149.27 million Thursday, and it was the heaviest total since 244.51 million changed hands at the last witching hour on June 16.

Declining issues outnumbered advances, however, by about 5 to 4 in nationwide trading of New York Stock Exchange-listed stocks, with 651 up, 837 down and 505 unchanged.

Heavy activity at the opening and again at the close was prompted by the witching hour, involving the last trading in a group of expiring options and futures on stock indexes.

There had been concern that professional traders engaged in multiple strategies involving those contracts would depress the market with a barrage of sell orders for stocks.

But the market got a boost from the latest data on the producer price index and the trade deficit.

The Tokyo Stock Exchange was closed for a national holiday.

Shares prices fell sharply in relatively active trading on London’s Stock Exchange.

The Financial Times-Stock Exchange 100-share index, closed down 15.5 at 2,366.5, its lowest close since it finished at 2,360.0 on Aug. 17.

Currency

The dollar fell sharply in panicky domestic dealings characterized by wild rumors and price swings, erasing gains posted in earlier foreign trading.

Gold prices were mixed. On the New York Commodity Exchange, gold for current delivery jumped to $363.90 an ounce, up $3.40. Republic National Bank’s late quote was $362.50, up from $359.35.

The dollar rallied sharply in foreign trading, climbing above the benchmark 2.00 level against the West German mark after a better-than-expected report on the U.S. trade deficit.

But traders at home said the euphoria was short-lived. By mid-afternoon, the market was hit with a string of outrageous rumors ranging from the assassination of President Bush to the failure of Wells Fargo & Co.

The Japanese yen was not traded in Tokyo, where markets were closed for a holiday. In London, the dollar was quoted at 148.65 yen, compared to Thursday’s close in Tokyo of 145.85 yen. In New York, the dollar closed at 146.35 yen, down from 146.85 yen.

Gold fell in London to a late bid of $356.25 an ounce, compared to late Thursday’s $362. In Zurich, Switzerland, gold fell to $356 from $361.75 late Thursday. Hong Kong’s gold market was closed Friday for the Chinese mid-autumn festival.

Credit

Bond prices gyrated before finishing higher in a session dominated by mixed economic news and rumors.

The Treasury’s benchmark 30-year bond was up in early trading, down slightly at midday and back up by the close. It finished 15/32 point higher, or nearly $4.70 per $1,000 face amount. Its yield fell to 8.07% from 8.12% late Thursday.

The federal funds rate, the interest on overnight loans between banks, was quoted at 9.6125%, up from 8.875% late Thursday.

Tables begin Page 5