FINANCIAL MARKETS : Stocks Record a Modest Gain; Dow Rises 7.90
Wall Street stocks finished with a modest gain Thursday in light trading that was lifted by a flurry of late buy orders on the next-to-last trading day of the year.
Traders said year-end portfolio changes accounted for much of the activity, with some portfolio managers selling losing stocks for tax reasons and some buying more shares of the year’s big winners.
The Dow Jones index of 30 industrials rose 7.90 to 2,732.30, closing at its high for the day. In the broader market, advancing stocks led declines by 832 to 675 on light volume of 128 million shares compared to 133.7 million on Wednesday.
“We have a strike among buyers and sellers. There’s no conviction and no urgency, and everybody is waiting for someone else to set the trend,” said Michael Metz, a strategist at Oppenheimer & Co.
Walt Disney stock rebounded 3 to 112 1/4. On Wednesday, the shares fell 4 1/2 as investors reacted to news that its chief financial officer, Gary Wilson, will give up some posts at the company but stay on in others.
Campbell Soup Co. jumped 4 3/8 to 57 3/8. A group of Dorrance family members that control 17.4% of the stock said they wanted to sell their holdings for a price in excess of current market value.
Champion International rose 1 3/8 to 30 3/4. Champion said Laurence A. Tisch of Loews Corp. recently sought clearance from the Federal Trade Commission to buy up to 15%.
The Germany Fund jumped 1 3/4 to 19 despite a statement issued from fund managers saying that net asset value was $12.16 a share and that the price increase was “exaggerated.”
Microsoft fell 1 to 85 1/4 after news late Wednesday that its president, Jon Shirley, plans to retire.
Bullish sentiment on the Tokyo Stock Exchange Thursday lifted the key Nikkei index to a new high for the third straight session in dull trading, but prices eased later in the day. The average of 225 issues gained 75.31 points to close at 38,876.94.
In London, the Financial Times-Stock Exchange 100-share index rose 3.0 points, or 0.1%, to close at 2,398.8.
CREDIT
Bonds Continue Their Recovery Bond prices advanced moderately in light trading Thursday, rebounding from a selloff earlier this week.
The Treasury’s 30-year bond gained 7/32 point, or about $2.19 per $1,000 face amount. Its yield fell to 7.96% from 7.98% late Wednesday.
Bonds got some support from gains made by the dollar, but much of the advance “was a rebound from the oversold condition that occurred Tuesday,” said William V. Sullivan, director of money market research for Dean Witter Reynolds Inc.
The federal funds rate, the interest on overnight loans between banks, was quoted at 8 3/8%, down from 8 3/4% late Wednesday.
CURRENCY
Dollar Advances in New York Trading
The dollar finished sharply higher in domestic trading Thursday after putting in a mixed performance overseas.
Gold prices fell. On the Commodity Exchange in New York, gold bullion for current delivery settled at $398.60 an ounce, down $2.20 from Wednesday. Republic National Bank in New York quoted a late bid for gold at $399.50 an ounce, off $1.50.
In Tokyo, the dollar rose to a closing 142.15 Japanese yen from 142.10 yen on Wednesday. Later in London, it rose to 143.15 yen. In New York the dollar closed at 143.55, up from 142.00 Wednesday.
In London, the British pound fell to $1.6137 from $1.6255 late Wednesday. In New York it cost $1.6045 to buy one pound, cheaper than Wednesday’s $1.6275.
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