Newspaper article THE JOURNAL RECORD

Market Slides Friday, Only Bright Spots Are Takeovers

Newspaper article THE JOURNAL RECORD

Market Slides Friday, Only Bright Spots Are Takeovers

Article excerpt

NEW YORK (UPI) - The stock market finished with a loss Friday, and some analysts doubted its ability to follow through on advances made earlier in the week.

Oils, motors and technology stocks all took a beating, and takeover situations provided the only bright spots.

The Dow Jones industrial average skidded 9.60 to 1,275.18. For the week, the Dow rose 8.62. Broader-based indicators also retreated. Declines led advances 857-624 among the 1,961 issues traded at 4p.m. EST.

Volume evaporated, with 86,570,000 issues traded on the Big Board, down from 108,630,000 traded Thursday.

""The stock market is beginning to sense a renewed uncertainty'' about Federal Reserve action and legislation on the federal deficit, said Eugene Peroni, Bateman Eichler, Hill Richards, Los Angeles.

The market has ""mounted a pretty good foundation here for gains, but it still lacks any partuicular fire power,'' he said.

There is an uncomfortable disparity, he noted, in leadership, with most emphasis on special situation stocks.

Until the market sees more leadership - particularly in the high-technology sector - it will continue to go up only cautiously and be more vulnerable to retreat, he said.

But the market still looks promising, said Alfred Goldman, of A.G. Edwards & Sons, St. Louis.

He said the intermittant rally begun earlier this week could eventually take the market to retest the 1,300 level.

But the lack of quality leadership, and the emphasis on ""crap-shooting merger mania - fact or fiction'' is a problem, he said.

Fundamentally ""there is no reason anybody should have any conviction about anything,'' Goldman said, citing ""a world of unknowns'' about the economy.

""A little bit of a correction is not unexpected,'' said Harry Laubscher, of Paine Webber.

He said the Standard & Poor's 500-stock index and the NYSE index entering all-time high territory this week indicated that new capital was coming into the market, he said. …

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