The passage of a two-year, $76-billion deficit reduction plan didn't do much for the stock market, which feebly attempted to rally some of the blue-chip stocks, said Irving Katz, director of research at Thomas Green Associates/San Diego Securities.
Expectations are that the deficit reduction will be too little and too late to help an economy that has still not reacted to the Oct. 19 crash. Every listed New York and American Stock Exchange stock was either lower or unchanged for the week with only a smattering of pluses in the over-the-counter market.
Price Co., while down one-half to 28 for the week, appears to be gaining some support by virtue of its recommendation on last week's "Wall Street Week" on the PBS network, as it gained one point Monday. In Price Co., investors can now find a growth stock, which they were willing to pay 40 times earnings for earlier this year, now selling for 15 times the current year's projected earnings.
The savings and loans continue to drop for no apparent reason. Home Federal was down 2 7/8 to 22 1/8 as institutional investors deserted California's savings and loans. Great American First Savings Bank was down seven-eighths to 12 1/8.