FINANCIAL MARKETS : STOCKS : Dow Rises 20.26 to Finish Week With a Loss of 28.16
The stock market rose sharply Friday in quiet pre-holiday trading, aided by what analysts described as year-end bargain hunting.
The Dow Jones index of 30 industrials climbed 20.26 to 2,711.39, cutting its loss for the week to 28.16 points.
Advancing issues outnumbered decliners by more than 2 to 1 in nationwide trading of New York Stock Exchange-listed stocks, with 1,011 up, 488 down and 440 unchanged.
Traders appeared to be doing some last-minute shopping among recently depressed stocks, hoping that the market would gather strength after the pressure of tax selling is lifted with the arrival of the new year.
At the same time, however, the rally bid was faced with an obstacle in the form of the Commerce Department’s report that new factory orders for durable goods rose 5.1% last month.
That increase contrasted sharply with advance estimates of little or no change in orders for relatively high-priced, long-lasting goods.
The suggestion it carried of unexpectedly brisk economic activity helped push interest rates higher in the credit markets.
Regional telephone stocks were standout gainers, following word that the Federal Communications Commission plans to regulate local phone companies on the basis of price rather than profits under a plan to take effect Jan. 1, 1991.
Bell South gained 2 1/8 to 57 7/8, Pacific Telesis added 7/8 to 49, Nynex 3 to 91 3/4, Southwestern Bell rose 1 3/4 to 62 1/2 and U.S. West gained 1 7/8 to 78 3/4.
Some closed-end investment companies specializing in single countries also chalked up gains on news of the government’s fall in Romania, giving fresh impetus to the recent democratic ascendancy in Eastern Europe. Germany Fund rose 1 to 13 3/4 and Austria Fund was up 1 3/4 at 15 1/2.
In Tokyo, the key Nikkei index gyrated in a range of more than 550 points in thin trading. The key 225-share index ended down 175.11 at 38,040.37.
In London, share prices rose after a shortened session Friday on the London Stock Exchange. The Financial Times 100-share index closed up 9.0 at 2,362.0.
CREDIT Bond Prices Fall on Lower Dollar Bond prices fell in abbreviated pre-holiday trading on a lower dollar overseas, concerns over Japanese interest rates and the buoyant report on U.S. durable goods orders.
The Treasury’s benchmark 30-year bond declined 5/16 point, or $3.13 per $1,000 in face amount. Its yield, which rises when prices fall, jumped to 7.88% from 7.85% late Thursday.
The federal funds rate, the interest on overnight loans between banks, was quoted at 8.188%, down from 8.25% late Thursday.
The credit markets shut down at 1 p.m. EST in advance of the Christmas and Hanukkah holidays.
The U.S. financial markets are closed Monday for Christmas.
CURRENCY Dollar Tumbles as Mark Demand Rises The dollar tumbled Friday in abbreviated pre-Christmas foreign-exchange trading, weighed down by continuing demand for the West German mark and expectations that U.S. interest rates are headed lower.
Gold prices edged higher in New York after turning in a mixed performance overseas. Republic National Bank in New York quoted an after-hours bid for an ounce of gold at $413.75 as of 1 p.m. EST, up from $412.20 late Thursday.
Traders said the dollar was little affected by the continuing U.S. intervention in Panama and the fall Friday of Nicolae Ceausescu, the long-time Romanian leader.
In Tokyo, the dollar fell 0.10 Japanese yen to close at 143.67 yen. Later, in London, the dollar was quoted at 143.05 yen. In New York, the dollar fell to 142.35 yen from 143.65 yen late Thursday.
COMMODITIES Orange Futures Fall in Frantic Session Orange juice futures prices fell sharply Friday on the New York Cotton Exchange as skittish players took pre-weekend profits in a wild session that featured a one-hour trading halt to prevent mix-ups in the flood of orders.
“We had a really crazy market here,” said Celeste Georkakis, an analyst with Cargill Investor Services Inc.
On other commodity markets, heating oil futures posted fresh gains as the nation’s record-setting cold spell continued; precious metals advanced; livestock and meat futures were mixed, and grains and soybeans were mixed.
Most commodity exchanges held abbreviated trading sessions to give traders and employees an early start on the long holiday weekend.
After rising sharply in the four previous sessions, frozen concentrated orange juice futures fell 1 cent to 4.7 cents Friday, with the contract for January delivery settling at $1.37 a pound.
The run-up earlier in the week had been fueled by forecasts for a damaging freeze this weekend in the Central Florida citrus belt.
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