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Dow Up 11.38; Index Trading Swells Volume

June 17, 1989|From Times Wire Services

NEW YORK — The stock market moved ahead Friday in the heaviest trading volume in about five months as buyers braved the "triple witching hour."

The Dow Jones index of 30 industrials rose 11.38 to 2,486.38 but lost 27.04 points from a week earlier.

Gainers outnumbered losers by about 9 to 7 in nationwide trading of New York Stock Exchange-listed stocks.

Volume on the floor of the Big Board came to 244.51 million shares, up from 179.48 million in the previous session.

The unusually heavy volume on Wall Street reflected trades associated with the expiration of stock-index futures, index options and options on individual stocks. The set of expirations occurs once each quarter in something commonly called the triple witching hour.

Most of the trading was concentrated around the opening and closing of the session.

Traders paid little attention to two government economic reports.

Warner Communications dominated the list of actively traded NYSE-listed stocks on news that Time intends to launch a $70-a-share tender offer for Warner instead of merging with Warner in a stock swap.

More than 8.2 million Warner shares changed hands in NYSE-composite trading, and the stock wound up with a gain of 3 5/8 at 59 1/4.

Time, which also said it has rejected a $175-a-share takeover bid from Paramount Communications, tumbled 9 to 162 1/2. Paramount pulled back by 1 3/8 to 58 1/8.

Another media stock, MCA, gained 1 1/4 to 60 in response to a Business Week magazine report that the company may be a takeover candidate.

Apple Computer tumbled in heavy trading on news that the personal computer group has had difficulty producing enough of its popular new Macintosh IICX computers to meet demand.

Apple finished down 3 at 44 1/2 after recovering from a session low of 43 1/2. It was the second most active over-the-counter stock Friday, with more than 4.8 million shares changing hands.

Eastman Kodak shed 1/8 to 48 5/8. The company said it is consolidating some operations that would cause hundreds of job cutbacks.

A. H. Robins rose 3 1/8 to 29 7/8. A federal court approved Robins' bankruptcy reorganization plan, which includes $2.5 billion for women who claim they were injured by the company's Dalkon Shield birth control device sold widely in the 1970s.

Tokyo stock prices gained moderately to end the week on an up note after Thursday's huge drop. The Nikkei 225-share index gained 142.08 points to close at 33,055.17.


A rally in the dollar fizzled one day after a sharp selloff, leaving it higher against the British pound, Canadian dollar and Swiss franc but lower against other major currencies.

The dollar rose from late Thursday levels in Asian and early European trading despite central banks' dollar sales, but it failed to hold ground after a U.S. report showed inflation in May at the high end of expectations.

In London, the dollar fell against the British pound. It cost $1.5340 to buy one pound, more than $1.5195 late Thursday. In New York, the pound fell to $1.5410 from $1.5510 late Thursday.

The dollar fell 6.25 Japanese yen to a closing 145.05 yen in Tokyo. Later, in London, it was quoted at 145.50 yen. In New York, the dollar fell to 144.70 yen from 145.40.


Bond prices edged lower following the government's report that consumer prices rose sharply in May.

The Treasury's closely watched 30-year bond slipped 3/16 point, or $1.87 for every $1,000 in face value. Its yield, which moves in the opposite direction from price, was unchanged from late Thursday at 8.30%.

The federal funds rate, the interest banks charge each other for short-term loans, was quoted late Friday at 9.438%, unchanged from late Thursday.

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