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Dow Off 24.75 as Several Rally Attempts Fizzle

July 16, 1986|From Times Wire Services

NEW YORK — Stock prices tumbled across a broad front in brisk trading Tuesday in a continuation of the market's recent retreat.

The Dow Jones average of 30 industrials sank 24.75 to 1,768.70 after a volatile session for the blue chips that featured several unsuccessful rally attempts. Wall Street's widely watched indicator has fallen 140.33 points, or about 7.4%, since July 2, when it closed at a peak of 1,909.03.

Losing issues outnumbered gainers by about three to one in the overall tally on the New York Stock Exchange, where trading volume surged to 183.98 million shares from 123.17 million on Monday.

It was the 10th-heaviest session on the Big Board and the busiest since April 10, when 184.76 million shares traded.

Safeway Stores, embroiled in a takeover battle, slid 2 to 52 5/8.

Other losers among the heavily traded NYSE-listed stocks included: Panhandle Eastern, down 2 at 44 1/2; Associated Dry Goods, down 2 1/8 to 62; Hewlett-Packard, off 2 1/8 to 36, and Schlumberger, down 2 to 31.

The only gainers among the Big Board's most active issues were Coca-Cola, which rose to 40 3/8, and Sperry, which closed up 1/8 at 75 3/8.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 214.83 million shares.

Large blocks of 10,000 or more shares traded on the NYSE totaled 3,425, compared to 2,412 on Monday.

Government bond prices gained as the credit markets were buoyed by the latest economic reports.

The 30-year Treasury bond rose about 1/2 point, or $5 for each $1,000 in face amount, which reduced the key bond's yield to 7.11% from 7.16% late Monday.

Bond dealers bought based on the possibility that the supply of government securities might shrink over the next few weeks while Congress debates a measure to raise the Treasury's borrowing authority.

In the secondary market for Treasury securities, prices of short-term governments rose by 1/32 point to 1/16 point and intermediate maturities were up by 1/8 point to 1/2 point. The firm said the 20-year bond rose point.

Yields on three-month Treasury bills finished the day down 2 basis points at 5.77%. Six-month bills fell 1 basis point to 5.79%. One-year bills were unchanged at 5.81%.

The federal funds rate traded at 6.3125%, compared to 6.375% late Monday.

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