FINANCIAL MARKETS : Dow Rises 21.92 to Finish Week With 3.90 Loss
Stock prices closed out an erratic up-and-down week Friday with a rally that featured a few issues benefiting from the political news in Germany.
The Dow Jones index of 30 industrials climbed 21.92 to 2,625.61, finishing the week with a net loss of 3.90 points.
Advancing issues outnumbered declines in nationwide trading of New York Stock Exchange-listed stocks, with 901 up, 557 down and 494 unchanged.
Big Board volume totaled 131.80 million shares, down from Thursday’s 143.39 million.
A fire-related power problem at the Securities Industry Automation Corp. in lower Manhattan’s financial district delayed the usual 9:30 a.m. EST opening of stock trading by an hour. SIA processes trades for the exchanges.
When activity resumed, prices almost immediately headed higher.
Analysts said a strong showing by bond futures contracts helped renew the hopes for lower interest rates that helped push stock prices higher earlier in the week.
Germany Fund recorded one of the day’s biggest percentage gains, up 2 3/4 at 13 1/2 as the West German stock market, where the fund invests, responded to the opening up of borders with East Germany.
Austria Fund, another publicly traded investment company, climbed 1 to 12 1/2, and Helvetia Fund, which concentrates on Swiss markets, rose 3/4 to 12 5/8.
Woolworth, which has extensive retailing operations in West Berlin and elsewhere in West Germany, gained 3 1/4 to 60 7/8.
Elsewhere, Avon Products jumped 5 1/2 to 36 3/4. The company said an investor group named Chartwell Associates had acquired more than 5% of its stock.
Stock prices on the Tokyo Stock Exchange closed slightly higher in heavy trading. The Nikkei 225-share average added 5.78 points to close out the week at 35,663.20.
Stocks in London closed sharply higher largely on technical factors and positive sentiment stemming from Wall Street’s continued recovery from its steep loss at the start of the week. The Financial Times 100-share index rose 25.6 points to close at 2,203.6.
Credit
Bond prices finished little changed in light activity as many traders stayed out of the market for Veterans Day.
The Treasury’s closely watched 30-year bond ended unchanged from late Thursday, with its yield at 7.89%.
Analysts said bond prices were little changed after the Federal Reserve entered the market for a second day to drain reserves from the banking system.
The federal funds rate, the interest on overnight loans between banks, was quoted late in the day at 8.375%, unchanged from late Thursday.
Currency
The dollar finished higher Friday as startling reforms in East Germany and their uncertain affect on the economy of West Germany fueled demand for the U.S. currency.
Traders said the dollar’s biggest move came at the expense of the West German mark. The dollar opened at 1.8520 marks and rose steadily throughout the session, although it never broke through the 1.8700-mark level.
“People are getting anxious to get out of marks,” said Kevin Lawrie, vice president at the Bank of Boston’s New York office.
“They’re not sure what the impact might be,” he said, referring to rapid-fire changes in East Germany, where travel restrictions have been lifted.
In Tokyo, the dollar closed at 142.75 yen, slightly higher than Thursday’s close of 142.70 yen. Later in London, the dollar traded higher at 143.35 yen. In New York, the dollar finished at 143.40 yen, up from from 143.13 yen on Thursday.
In London, the British pound fell to $1.5765 from $1.5863 late Thursday. In New York, one pound cost $1.5773, cheaper for buyers than Thursday’s $1.5823.
Commodities
Grain and soybean futures surged higher on the Chicago Board of Trade as buyers shrugged off increased estimates of the nation’s corn and soybean crop production.
On other markets, precious metals and copper declined, sugar rose, energy futures were lower, and livestock and pork futures were mixed.
Wheat settled 1.25 to 5.75 cents higher, with the contract for delivery in December at $4.045 a bushel.
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