Dow Gains 15.84 in Lightly Attended Post-Yule Session
The stock market bounced higher in slow trading today as traders straggled back from the Christmas holiday.
The Dow Jones industrial average closed with a gain of 15.84 points at 2,637.13. In the broader market, advancing stocks outpaced decliners by a 7-6 margin. Volume on the New York Stock Exchange was a very light 78.73 million shares, against Monday’s four-year low of 57.20 million.
Traders said stocks were boosted by the Treasury bond market, where the benchmark 30-year issue rose about two-thirds of a point. Higher bond prices mean lower interest rates that make stocks a more attractive investment.
But traders said that with the very light volume, it was hard to predict a clear trend. They noted little enthusiasm for chasing after stocks as 1990 winds down.
The showdown in the Persian Gulf appears to have dampened expectations for any sort of New Year’s rally after the pressure of tax selling is lifted from the market.
Many questions also linger about the economic outlook. Early news reports described the returns from retailers’ Christmas selling season as very weak and a big disappointment.
Gainers among the blue chips included Texaco, up 1 5/8 at 60 3/8 an hour before the close; Philip Morris, up 1/2 at 51 3/8; Ford Motor, up 1/2 at 26 7/8, and USX, up 1/4 at 30 1/4.
Among retailing stocks, The Limited added 1/8 to 17 7/8, but Wal-Mart Stores dropped 3/8 to 31 1/8 and Toys R Us was down 3/8 at 22 3/4.
Pan Am Corp. was up 1/8 at 1 3/8. The company said it has not ended merger discussions with Trans World Airlines Inc., but said it is waiting for TWA to make a firm, detailed offer.
UAL Corp. rose sharply, gaining 2 1/2 to 115 1/2.
“We’ve seen sporadic buying throughout the morning,” one trader said. “But it’s been very, very light. Professional traders are not doing much.”
Don Hays, an investment strategist at Wheat First Securities, said the market’s strength was purely seasonal. “There are so few players that bargain-hunters are pushing stocks higher.”
Hays said the market was ignoring negative influences such as higher oil and gold prices.
