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Dow Off 5.34 as Traders Scurry to Sidelines

October 22, 1986|Associated Press

NEW YORK — Stock prices were mixed Tuesday as many traders moved to the sidelines to await today's release of a key indicator of the nation's economic progress and the results of the OPEC meeting in Geneva.

The Dow Jones average of 30 industrials slipped 5.34 points to close at 1,805.68.

Volume on the New York Stock Exchange totaled 110 million shares, against 109.01 million in the previous session.

Advancing stocks slightly outpaced declining ones by 784 issues to 715, while 487 were unchanged.

Analysts said the market moved without conviction, preoccupied by the government's pending report on the third-quarter growth of the gross national product.

Many economists anticipate that the figure will reflect an expansion of about 2.5%.

Analysts said a higher figure would indicate a likelihood of higher near-term interest rates, which would put downward pressure on stocks, while a lower percentage could have the opposite effect.

In Geneva, meanwhile, there were reports that the Organization of Petroleum Exporting Countries was close to reaching a new accord on limiting production to strengthen oil prices after more than two weeks of negotiations.

Goodyear Seen as Target

Among most active issues, Goodyear was up 1 7/8 at 42 on takeover rumors. International Business Machines was up 1 1/8 at 121 3/8 and Poloroid was down 2 7/8 at 68 1/8. Transworld was down 1/8 at 35 1/8.

USX Corp. was down 3/8 at 26 5/8. The company's resumption of negotiations with striking steel workers was seen as a defense against corporate raider Carl C. Icahn.

Merrill Lynch was up 5/8 at 38 3/4, Salomon Inc. was down 5/8 at 38 3/4 and Citicorp was up 7/8 to 48 3/4, after announcing a 9% gain in its third-quarter earnings. Beneficial Corp. was down 1 3/8 at 75 1/2. Chase Manhattan was down 1/8 at 35.

Most bond prices rose, but trading generally was light. Analysts said the market remains confused because of investor uncertainty over the outlook for interest rates.

The Treasury Department's key 30-year bond rose nearly $10 for each $1,000 in face amount, and its yield fell to 7.83% from 7.91% late Monday.

In the secondary market for Treasury bonds, prices of short-term governments rose point, intermediate maturities about 5/8 point and long-term issues were up about one point.

In corporate trading, industrials rose 1/8 point and utilities rose point in light to moderate dealings.

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