The Salina Journal from Salina, Kansas on November 29, 1981 · Page 5
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The Salina Journal from Salina, Kansas · Page 5

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Salina, Kansas
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Sunday, November 29, 1981
Page:
Page 5
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Stocks soar in best gain in two months Sunday, November 29,1981 — Toe Salina Journal Page 5 NEW YORK (UPI) - Stocks, bolstered by lower interest rates, reduced inflation and signs the recession might be heading toward a bottom, scored their biggest gain in two months during Thanksgiving week. Tradi ng was heavy. Brokers said the price rise during the holiday shortened week may have signaled the beginning of an early yearend rally that could cut some of the^ sharp losses encountered overall this year. the Mobil-U.S. Steel battle for Marathon Oil and other takeover situations were in center ring of Wall Street's show last week. And some brokers reported an influx of orders from Europe, which may be having its worst economic troubles since World War II. The Dow Jones industrial average, which lost 2.95 points the previous wee k, soared 33.01 points — including 18.45 Tuesday - to 885.94, the best gain since it climbed 365.72 the week ended Oct. 2. The rally,, which caught many analysts by surprise, put the Dow industrial average at the highest level since it finished at 892.22 on Aug. 28. The New York Stock Exchange index rose 1.71 to 72.71 and Standard & • Poor's 500-stock index gained 3.38 to 125.09. Advances topped declines 1,296574 among the 2,126 issues traded. Several analysts said the rally's breadth indicated investors were buying in a variety of stocks and not Just the Dow and smokestack issues. Near 900 mark That is the kind of action that could sustain the rally this week and carry the Dow over the 900 mark for the first time since it finished at 901.83 on Aug. 3. Big Board volume for the four-day week totaled 190,002,590 shares compared with 237,656,160 a week earlier and 196,589,210 traded during the same period a year ago. U.S. stock exchanges were closed Thursday for Thanksgiving. The market broke its historic pattern of being soft before and during the Thanksgiving. Now analysts hope it will live up to its habit of being strong the last part of the year as the pressure of tax selling eases. Most analysts expected profit taking to cut some of the gains because the Dow average has climbed a total of. 41 points in the past five sessions. But interest rates have declined substantially the past two months from ' about 20 percent to 16 percent — a 12- month low — and the market, generally, has responded favorably. Chase Manhattan has lowered its . base rate to 15% percent and most experts believe the prime and other short-term rates will fall even more as •the recession deepens. October consumer prices rose only 0.4 percent, down from 1.2 percent reported in September as a result of the recession and durable goods orders suffered the worst plunge in 2% years. Near the bottom? That indicated the recession would be deeper than anticipated, especially in the fourth quarter. But it also indicated the recession might be nearing its lowest level. Many investors, aware the stock market usually anticipates the end of a slowdown by six to eight months, were looking for the recovery timetable. Composite volume of NYSE issues listed on all U.S. exchanges anid over UNITED A MONEY MARKET FUND • Minimum investment: $1,000 (then you may add as little as $100 as often as you wish) • Withdraw anytime without interest penalty • Free check writing (minimum: $500) • No sales charge FOR A PROSPECTUS, THAT YOU SHOULD CONSIDER BEFORE INVESTING, CALL OR SEND COUPON TO: WADDELL 4 REED, INC. 913-827-5161 PUM« phone during normal builneM hours •Anngallzed average net Investment Income per share for seven days ended Nov. 27. Future yields will vary depending upon short-term Interest rates and portfolio composition. Principal Is not guaranteed. Please send Information regarding United Cash Management NAME ADDRESS CITY, STATE ZIP _PHONE 219 S. Santa Fe, Sauna, Ks »7401 the counter totaled 220,263,090 compared with 281,738,940 traded last week. On the trading floor, Marathon Oil, which soared 29% points the week before, was the most active NYSE-listed issue, off % to 107%. Mobil raised its unwanted bid to $6.5 billion from $5.1 billion. U.S. Steel, which made a $6.2 billion offer that Marathon accepted, rose 2% to 32%. Mobil, which won a tempoary restraining order blocking USS's offer, added % to 26%. Blue-chip IBM was the second most active issue, up 3% to 54% and K mart was third, off % to 16V«. Beckman Instruments climbed 14% to 44% after reaching a preliminary agreement with SmithKline to merge , in a deal worth more than $1 billion. Handy & Barman dropped 5 to 20 after the company announced it had terminated plans to liquidate. Host International climbed 5% to 27%. The company agreed to merge with DPS group of Hong Kong, which raised its offer after Marriott bid $29 a share for Host. Paine Webber gained 4 to 24% following rumors it would be taken over by a unit of INA Corp. and Connecticut General Corp., which plan to merge. INA, a 24 percent owner of Paine Webber, said the speculation was "incorrect." Blue-chip Merck, a component of the Dow industrial average, rose 5% to 86V< after the government approved its timolol heart drug for marketing. On the Amex, the market value index soared 12.05 to 330.16. Advances topped declines 445-324 among the 920 issues traded. Volume totaled 19,075,810 shares compared with 23,687,915 the previous week and 29,352,310 during the same period a year ago. Dome Petroleum was the most active issue, up 1% to 13%. Houston Oil Trust followed, up IV* to 20%. Integrated Energy was third, off % to 3%. 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