Newspaper article THE JOURNAL RECORD

Stocks Slump during Holiday

Newspaper article THE JOURNAL RECORD

Stocks Slump during Holiday

Article excerpt

NEW YORK (AP) - Stock prices slumped in a subdued session Monday as many traders were absent on the holiday honoring Martin Luther King Jr.

Government offices and some major banks and businesses were closed.

The Dow Jones average of 30 industrials opened sharply lower amid pessimism about the interest rate outlook and lingering disappointment over the financial results reported Friday by International Business Machines.

Some buying in the final hour helped blue chips trim the losses and the Dow industrials closed at 1,529.13, down 7.57.

Losers outnumbered gainers by 895 to 654 on the New York Stock Exchange and 435 issues were unchanged. Volume on the Big Board contracted to 85.34 million shares from 132.13 million Friday.

""Today was very lackluster,'' said Newton D. Zinder, a senior vice president for E.F. Hutton & Co.

A weekend meeting of government officials from five major industrial countries did not yield a concerted commitment to bring interest rates down.

Finance leaders and central bank governors from the United States, Britain, France, Japan and West Germany met in London to review a Sept. 22 accord under which they joined to drive down the dollar's value.

Last week speculation that the countries might take a similar approach dealing with interest rates touched off rallies in the stock and bond markets.

At the conclusion of the London talks, the five countries issued a statement saying they agreed that their cooperation on the dollar should continue and that the progress which had been made shouldnot be reversed.

But the statement did not make any mention of an interest rate strategy.

Merrill Lynch, recently the subject of takeover rumors, led the list of actively traded stocks most of the afternoon and closed up 1 5/8 at 40. …

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