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Dow Gains 4.71 to End 3-Day Losing Streak

July 26, 1985|From Times Wire Services

NEW YORK — Most stock market indicators posted modest gains Thursday, even though four stocks declined in value for every three that advanced on the Big Board.

The Dow Jones average of 30 industrial stocks, down 10.64 points in the last three trading days, recovered 4.71 to 1,353.61.

Volume on the New York Stock Exchange came to 123.29 million shares, against 128.60 million Wednesday.

The market rose to record highs last week on spreading talk that economic growth would revive later this year and in 1986.

In the office-equipment sector, International Business Machines rose 1 1/8 to 130, Digital Equipment gained 2 to 104 3/8, Data General climbed 3 5/8 to 43, Burroughs rose 1 to 64 3/8 and Xerox rose 1 to 53.

Energy stocks, which rallied late in Wednesday's trading, gained more ground Thursday as traders assessed the news that a majority of Organization of Petroleum Exporting Countries had agreed on modest cuts in some lower grades of crude oil.

Oil Stocks Advance

Some Wall Streeters say the possibility of a sharp drop in oil prices appears to have been staved off, at least for the moment.

Texaco rose 1/2 to 37, Amoco climbed 5/8 to 65 1/8, Chevron rose 3/4 to 38, Exxon rose to 53 1/8, Mobil rose to 31 1/8 and Phillips Petroleum rose 1/8 to 13. Phillips led the active list on turnover of more than 3.1 million shares.

Among oil-service issues, Halliburton gained 1 to 29 5/8, Schlumberger rose 3/4 to 38 7/8 and Hughes Tool advanced 5/8 to 13 3/4.

Clevepak climbed 1 1/2 to 13 after a delayed opening. The company said it had agreed to be acquired by a private company for a package of cash and debt securities.

Warner-Lambert, subject of an adverse brokerage-house evaluation, tumbled 4 to 39 1/2.

Might Seek Protection

A. H. Robins fell 3 1/2 to 12 7/8. The company said it might find it necessary to seek protection under the bankruptcy laws because of compensation claims and legal costs related to its Dalkon Shield birth-control device.

Large blocks of 10,000 or more shares traded on the NYSE totaled 2,516, compared to 2,508 on Wednesday.

In the bond markets, prices were narrowly mixed as traders began to look ahead to the prospect of some heavy government borrowing in the next few weeks.

Late in the session, the Federal Reserve Board reported the nation's basic money supply tumbled $4.8 billion in mid-July. The decline was about twice as large as many credit analysts had expected, and it brought money supply growth more closely in line with the targets that the Fed has set to assure steady, non-inflationary economic growth. But it caused little reaction in the bond markets.

In the secondary market for Treasury bonds, prices of short-term governments were up 3/32point, while intermediate issues and long-term issues were down as much as 7/32 point, according to the investment firm of Salomon Bros. The movement of a point is equivalent to a change of $10 in the price of a bond with a $1,000 face value.

Light Trading

Among corporate bonds, industrials and utilities were unchanged in light trading, Salomon Bros. said. Among municipal issues, general obligations were off 3/4 point and revenue bonds were down point in moderate trading, the investment firm said.

Yields on three-month Treasury bills fell 7 basis points to 7.17%. Six-month bills fell 6 basis points to 7.32%, and one-year bills were off 7 basis points to 7.42%. A basis point is one-hundredth of a percentage point. Yields on 30-year Treasury bonds rose to 10.62% from 10.61% late Wednesday.

The federal funds rate, the interest on overnight loans between banks, traded at 7.375%, compared to 7.438% late Wednesday.

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