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Dow Drops 8.68 After Early Rally Try Fizzles

March 14, 1987|From Times Wire Services

NEW YORK — The stock market declined moderately Friday, closing out a sluggish and relatively quiet week.

The Dow Jones average of 30 industrial stocks, up nearly 4 points in early trading, finished with an 8.68-point loss at 2,258.66. For the week, the average fell 21.57 points.

Friday's volume on the New York Stock Exchange slowed to 150.87 million shares from 174.47 million in the previous session.

Before the market opened, the Labor Department reported that its producer price index of finished goods rose 0.1% in February, slowing after a 0.6% increase the month before.

Separately, the Federal Reserve Board said industrial production increased 0.5% last month.

Citicorp fell 1/8 to 52 after trading as low as 50 1/2. The company said it might have to reclassify $3.9 billion in Brazilian loans to a cash accrual basis, but it considers such a step "premature" for the present.

Other money-center bank issues were mixed. Chase Manhattan was unchanged at 38 3/8, Chemical New York dropped 3/4 to 44 3/4 and Manufacturers Hanover lost 5/8 to 44 3/8.

UAL fell 2 1/2 to 58 7/8. The company filed for an offering of 5 million new common shares.

Other airline issues also were weak amid talk about continued fare competition in the industry. Delta Air Lines dropped 2 3/8 to 58 3/8 and AMR was down 7/8 at 56.

Declining issues outnumbered advances by about four to three in the overall tally on the NYSE, with 652 up, 858 down and 443 unchanged.

A total of 3,145 blocks of 10,000 or more shares traded on the NYSE, compared to 3,734 on Thursday.

Bond prices snapped out of a slump, rising solidly on the government reports that dampened expectations of higher inflation and a strengthening economy.

The Treasury Department's key 30-year bond, which had been languishing most of the week, rose more than $3 for each $1,000 in face amount, and its yield dropped to 7.49% from 7.52% on Thursday.

Three-month Treasury bill yields fell 4 basis points to 5.62%. A basis point is one-hundredth of a percentage point. Six-month bills fell 2 basis points to 5.61% and one-year bills fell 3 basis points to 5.66%.

The federal funds rate, the interest on overnight loans between banks, traded at 6 1/8%, unchanged from late Thursday.

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