STOCKS : Quarter Ends on Sour Note; Dow Falls 20.49
Stocks closed out a sluggish first quarter with a mixed showing Friday in a session marked by late weakness in blue chips.
The Dow Jones index of 30 industrials dropped 20.49 points to 2,707.21, reducing its gain for the week to 2.93 points.
Advancing issues and declines were evenly balanced in nationwide trading of New York Stock Exchange-listed stocks, with 730 up, 724 down and 499 unchanged.
Volume on the floor of the Big Board came to 139.34 million shares, against 132.19 million in the previous session. Nationwide, consolidated volume in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 165.95 million shares.
Analysts said enthusiasm for stocks was restrained by continuing doubts about the outlook for interest rates. Traders also reacted warily to renewed selling in the Tokyo stock market, where prices fell 3.37% in the last activity of Japan’s fiscal year.
In recent weeks, U.S. stock prices have been holding steady while the Japanese market has suffered a sharp setback. But some observers still worry that ripple effects from the drop in Tokyo could soon start to spread more generally to other financial centers around the world.
The Dow finished the first quarter with a net decline of 45.99 points, or 1.67%.
Among Friday’s gainers, Teledyne rose 1 1/8 to 70 and First Interstate added 1 1/4 to 34. Unocal rose 5/8 to 31 7/8 in heavy trading, following Thursday’s gain of 1 1/4. Rumors resurfaced that British Petroleum might eventually bid for Unocal. Hilton Hotels rose 1 3/8 to 54 3/8 on what some traders said was renewed takeover speculation.
Among actively traded blue chips, American Express dropped 3/8 to 25 3/4 and Philip Morris fell 3/8 to 39 5/8. IBM was up 1/8 at 106 1/8.
In London, stocks ended lower because of a weak start on Wall Street and a general lack of direction. The Financial Times 100-share index closed down 15.1 points at 2,247.9.
CREDIT
Bond Prices Slip in Quiet Trading Bond prices lost ground Friday in light to moderate activity, reflecting concerns that next week’s economic reports may indicate some lingering strength that could keep the pressure on interest rates.
The bellwether 30-year Treasury bond fell 3/8 point, or $3.75 for every $1,000 in face value.
Its yield, which rises when the price falls, climbed to 8.62% from 8.58% late Thursday. Its yield had been 8.47% only a week ago.
Prices were weighed down by a report from a Midwestern purchasing managers group that suggested the economy is fairly strong, according to Kevin Flanagan, economist for Dean Witter Reynolds.
The federal funds rate, the interest rate banks charge each other on overnight loans, was quoted at 8%, down from 8 7/16% late Thursday.
CURRENCY Dollar Rebounds Against the Yen
The dollar rose sharply against the Japanese yen to recoup its losses from the previous session but finished mixed against other currencies in hectic trading Friday.
Gold prices were mostly lower. On the Commodity Exchange in New York, gold bullion for current delivery settled at $370.20 an ounce, off 60 cents from Thursday. Republic National Bank in New York quoted a late bid for gold at $370.25, down $1.15.
Although Japanese dealers and investors were largely absent due to the close of the Japanese fiscal year, trading in the yen was extremely active, dealers said.
The dollar lost nearly two yen on Thursday in what some observers called a “mini-correction.” But the U.S. currency began advancing in Tokyo and ended the day a full two yen higher in New York.
Bolstering the dollar were “expectations that Japan may not get such a warm reception” at the Group of Seven meeting, set to begin April 7 in Paris, said Stephen Flanagan, a vice president at Manufacturers Hanover Trust Co.
In Tokyo, the dollar rose to 157.65 Japanese yen, from 156.65 yen on Thursday. Later in London, it slipped to 157.30 yen. But in New York, the dollar closed at 158.35 yen, up sharply from 156.35 yen on Thursday.
In London, the British pound rose to $1.6465 from $1.6350 late Thursday. In New York, one pound cost $1.6455, more expensive than Thursday’s $1.6395.
Other late dollar rates in New York, compared to late Thursday’s rates included: 1.6940 West German marks, unchanged; 1.4982 Swiss francs, up from 1.4935; 5.7020 French francs, down from 5.7025; 1,248.75 Italian lire, up from 1,248.50, and 1.1695 Canadian dollars, down from 1.1720.
COMMODITIES Strike Fears Send Copper Prices Up
Copper futures prices jumped to new life-of-contract highs Friday on New York’s Commodity Exchange amid fears of a miners strike in Papua New Guinea and perceptions of a sharp drop in deliverable supplies of copper in London.
On other commodity markets, precious metals retreated, grains and soybeans were mixed, livestock and meat futures were mixed and petroleum futures advanced.
Copper futures settled 1.7 to 4.5 cents higher, with the contract for delivery in April up 3.4 cents at $1.269 a pound.
Prices were supported in part by sketchy rumors of labor tension at the O.K. Tedi copper mining complex in Papua New Guinea, a small nation in the South Pacific whose Bougainville copper complex was shut down nearly 11 months ago after attacks by irate landowners.
