Dow Drops 5 as Market Posts Modest Decline
NEW YORK — The stock market posted a modest loss on Friday, confronted with rising interest rates and selling by traders cashing in on the market’s recent gains.
The Dow Jones average of 30 industrials dropped 5.06 to 1,886.53, reducing its gain for the week to 8.72 points. Volume on the New York Stock Exchange came to 142.30 million shares, down from 165.29 million Thursday.
GTE rose 1 1/2 to 63 3/4 in active trading. The company is taking several steps, including a buyback, stock split and dividend increase, aimed at increasing the price of its shares and discouraging any would-be acquirers.
E. F. Hutton, which has been the subject of takeover speculation for some time, tumbled 4 1/2 to 48 3/8 as directors held what the company described as a regularly scheduled board meeting.
American Motors led the NYSE active list, unchanged at 3 5/8 on turnover of more than 3.2 million shares. On Thursday, the company, responding to rumors, said it had held no talks with Chrysler concerning the sale of any of its assets. Chrysler dropped to 38 5/8.
In the overall tally on the Big Board, declining issues slightly outnumbered advances, with 737 up, 797 down and 447 unchanged.
In the credit markets, yields on 30-year bonds dipped to 7.66%.
Prices of short-term governments fell 9/32 point, intermediate maturities fell 13/32 point and long-term issues were down as much as 1 3/8 point, according to the investment firm of Salomon Bros.
In corporate trading, industrials fell 3/4 point and utilities fell 5/8 point in light to active trading.
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