Newspaper article THE JOURNAL RECORD

Market's Attempt to Upswing Falls Apart; Prices Tumble

Newspaper article THE JOURNAL RECORD

Market's Attempt to Upswing Falls Apart; Prices Tumble

Article excerpt

NEW YORK (AP) - The stock market's bid to extend a brief upswing fell apart Thursday as prices tumbled in moderate trading.

Retail, auto, computer, drug and financial issues were among the major casualties.

The Dow Jones average of 30 industrials skidded 11.43 to 1,318.10, erasing most of its 17-point gain over the two previous sessions. The Dow Jones transportation average, which had soared 16.50 points Wednesday, gave back 9.71 to 686.33.

Declines overall led advances by about 2 to 1 on the New York Stock Exchange, whose composite index lost 0.92 to 108.57.

Big Board volume totaled 90.60 million shares, against 94.88 million on Wednesday.

Prices opened with a small gain but drifted into negative territory at midsession, with the slide gaining momentum in the final hour.

The moderate gains earlier this week had sparked debate on Wall Street as to whether the upturn, which was led by the blue chips and other market favorites, had staying power.

Some observers said it appeared the so-called ""secondary'' stocks were joining with the large-capitalization issues in moving higher, which they considered a bullish sign.

But many analysts contended that the advance was little more than a technical rebound from the market's lackluster showing earlier this month, and that the rally would be short-lived because the broader market continued to appear weak.

""What we had over the prior two days was nothing more than an oversold, knee-jerk rally,'' asserted Alfred E. Goldman, vice president of A.G. Edwards & Sons Inc. in St. Louis. ""Even a die-hard bull has to be disappointed that on only day three of a (upward) bounce, the market totally gave up the ship.''

In terms of business fundamentals, investors remain frustrated that the economy has not yet shown signs of a substantial recovery from its sluggish performance in the first half of 1985, brokers said. …

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