The end of the year is upon us and the market must "now absorb year-end tax-loss selling and switching, as well as institutional portfolio window dressing," according to Irving Katz, director of research with Thomas Green/San Diego Securities Inc.
With most stocks selling last week at or near their year's lows, yesterday's rally could be attributed to bargain hunters, according to Katz.
The on-again, off-again acquisition of Linear Corp. by Nortek was on again on Monday with the price being offered to shareholders being reduced from $13.25 to $12.50. Linear responded by gaining 2 1/8 to 11 7/8 after dropping 3 1/8 last week while the merger was being renegotiated, Katz said.
Gains for most stocks were fractional despite good earnings reports, according to Katz.
Langley Corp. gained a half to 6 1/2 after reporting fourth-quarter earnings of 37 cents per share, up from 13 cents a year ago. Yearly earnings rose to 79 cents a share, compared with 67 cents a year ago.