FINANCIAL MARKETS : Dollar Mixed; Stocks Drift in Holiday Trading : Market Overview
The stock market drifted mostly lower Thursday as investors focused on news affecting individual companies during a session that lacked a dominant theme to give it direction.
* The dollar dipped to its lowest closing level against the Japanese yen in a month, but rose slightly against most other currencies.
* The government bond markets were closed for Veterans Day.
Stocks
Strength concentrated in a few big-name companies was offset by weakness in other blue-chips, and the Dow Jones industrial average ended in the minus column. The popular indicator dipped 1.12 to 3,662.43 on Big Board volume of 287.11 million shares, up from Wednesday’s 283.45 million.
Gains in technology issues--particularly computer and related companies--helped the Nasdaq electronic market buck the trend. The Nasdaq composite index added 2.48 to close at 778.98.
In the absence of any scheduled government economic reports, market professionals reacted mainly to announcements from companies as stocks struggled unsuccessfully to sustain the advance achieved Wednesday when the Dow industrials climbed more than 23 points.
The government and the bond market, which often sets the course for stocks, were closed for the holiday.
“It was a very selective, very discriminating session,” said Alfred E. Goldman of A.G. Edwards & Sons Inc. in St Louis. “I think the market remains in an overall consolidation. Most stocks are acting tired and sluggish.”
He said the market had interrupted its consolidation phase Wednesday to rally in response to expectations that the North American Free Trade Agreement will be passed by Congress.
Among the market highlights:
* Strong performers among the blue-chips included American Telephone & Telegraph, which jumped 1 3/8 to 56 3/4 on word that AT&T; will provide equipment and cable for Pacific Telesis’ Pacific Bell unit to build an information superhighway in California. Pacific Telesis fell 1 3/8 to 55 1/4.
Other standouts among components of the Dow industrials included International Business Machines, which gained 2 1/8 to 52 after disclosing that it might sell a $2-billion division that develops special computer products for the federal government.
* Philip Morris moved up 1 3/8 to 56 3/4. Analysts at Goldman Sachs & Co. and Salomon Bros. Inc. raised the investment rating on Philip Morris. Other tobacco stocks also climbed as smaller companies followed the lead of RJR Nabisco’s R.J. Reynolds unit and raised cigarette prices. RJR Nabisco rose 1/8 to 6 7/8 in NYSE-leading volume of more than 7 million shares.
* Goodyear lost 1 at 42 1/2, Sears was off 1 1/8 at 56 1/2 and General Motors was down 3/8 at 50 3/4.
* Dreyfus stock surged 1 3/4 to 42 5/8 after the company confirmed that previously undisclosed discussions about a possible business alliance had been terminated. Early in the session, Dreyfus stock surged before being halted as takeover rumors swirled around the mutual fund company.
Foreign financial markets were mixed. Stocks rose in Tokyo, with the 225-share Nikkei average closing up 36.81 points at 18.158.52. Frankfurt’s DAX average ended down 0.51 points at 2,023.33, and London’s Financial Times 100-share average gained 1.2 points to close at 3,099.7.
Other Markets
Traders said the dollar has been under pressure since Wednesday when Japanese investors were liquidating foreign assets, which supported the yen. Further strength in the yen is predicted by technical analysts.
Trading was quiet due to the Veterans Day holiday observed by U.S. banks and Armistice Day observed in some European countries.
The dollar closed at 106.43 Japanese yen in New York, down from 107.15 on Wednesday.
The greenback rose to 1.6923 German marks, up from 1.689.
Elsewhere:
* Crude oil futures prices rebounded strongly on the New York Merc after a four-day slide. Light, sweet crude for December delivery ended 35 cents higher at $16.90 a barrel after dropping early in the session to $16.38, a two-month low, then rallying to $17.09.
* Gold fell on the New York Comex to $375.80 an ounce, off $1.00 from Wednesday. Silver closed at $4.549 an ounce, off 1.9 cents.
Market Roundup, D8
