European Stars And Stripes (Newspaper) - December 5, 1987, Darmstadt, Hesse Saturday decembers 1987 the stars and stripes Page 27 despite Good news Market drops again new York not yet another wave of pessimism Hil Wall Street thurs Day As jittery investor ignored presumably positive news about the Dollar and interest Rales. While there was none of the panic that characterized the Stock Market in the throes of its mid october collapse the Selling thursday was unbridled. Traders said some computerized Trad ing strategies thai might have been a fac Tor in the october Sci lots also contributed to the slide thursday which picked up steam in inc last hair hour. The Dow Jones Industrial average had its ninth biggest Point drop Ever thurs Day plummeting 72.44 Points or 3.92 percent to close at 1,776.53. It was the Bow s lowest close since oct. 9, when the key Blue Chip indicator made up of the stocks of 30 of the nation s Premier corporations plunged a record 508 Points or 22.6 percent to 1,738.74. The Stock Market s latest plunge set off another " Light to Quality As worried investors to Ujjin treas i securities pushing Down yields. The Stock Market this week has sandwiched two barely noticeable gains be tween thursday s Selloff and monday s 76.93-Pqint Dow slump the Dow s eighth biggest Point decline. Analysts and traders said that thurs Day s plunge was not All that surprising since the Slock Market had been steadily eroding in recent weeks. Bui the fact that inc Dow and stocks in general fell precipitously despite cuts in interest Rales by West German and other Central Banks spread gloom throughout Wall Street. It is a very demoralized Stock mar Ket said Hugh a. Johnson an economist for the first Albany corp. It is Clear now to Many of us that it is going to Lake a Long Lime to restore Confidence in he markets noting that the Slock Market took Little notice of the european rate cuts Johnson said it s not responding to Good news. This is the kind of stuff out Fock list not available list of closing Stock prices was not Aya Lable for this edition because of tech Nica difficulties. Of which Bear markets Are built. This is Bear Market behaviour in every sense of inc word it s nol Only demoralizing it s traders have apparently been made nervous by predictions that the Stock Market will lest the lows in fell to Dur ing the big october Selloff. They arc be coming increasingly afraid that it will fail the test and pointed 10 the Dow s fall thursday through 1,800, a so called sup port level. Many investors were also unnerved thursday by a statement by Robert Prechter a widely followed technical analyst who said inc Dow might fall to 1,600 in a few weeks. And reports thai sales Al the nation s major retail chains in november were disappointing a sign perhaps that Consumers Are culling Back because of the Slock Market s crash did nol help Illers. 1ttie pessimism outweighed the news i that Central Banks in West Germany i Britain France Austria Switzerland Belgium and the Netherlands Cut interest Rales. The most important Cut came in Bonn where the Bundesbank reduced its discount Rale the rate in charges to make Loans 10 commercial Banks to a postwar Low of 2.5 percent. Thai and the other european cuts Are part of a Campaign to Shore up the Dollar bolster spending and stabilize the world s shaken financial markets. Pie rate cuts did help the Dollar which rallied in Europe and also gained in later . Trading Bui they did not help the Stock Market. The initial Shock of the october Deba Cle has worn off and investors have had a Chance to look More soberly Al the risk Reward ratio of the current Slock Market. They Are now factoring in Many uncertainties he Chance of a recession the depressive effect of year end tax Selling inc Dollar s instability the american Trade and budget deficits the threat of inflation and higher interest rates the shattered psyche of institutional Money managers Many of whose performances Are soon due for annual review the up coming presidential election year and much More. Traders said both portfolio insurance and program trading were factors in thursday s Selloff particularly at the end of the Day. A Ort Ohio insurers sell Stock Index futures contracts to protect against a further decline in the Stock Market. But that deflates the Cost of Hose contract and allows arbitrageurs to Alep in and buy the now undervalued contracts. By then Selling actual stocks such arbitrageurs which include Large institutions can lock in profits against the contracts the whole process was i. Ici Zed during and after the october cot urn in Sliu wins the i a Crit i by i try is most Active Pottle trading Lei 44.02s.30i 1.414.400 3.349,900 3.doi.wh chg. Oil Liph Ollie up Oil Otil oh4on 4 Riih Al Flat ally on 1 Dill Ftp Enn per Lelh gel Neil to icy up thurs no rat car the . currencies. Fures Are exp Jpn in dollars to the Britis Pound and funner local currencies in Doubs new Yorku an wean stoc � Tow 10 most a Cativo Nocht in Echo by ufos Bat Indus dec 11bj05 1s4es 5bmh tw7s79 Pec 3 1bw5 16uo 5w/0 1b680 3490 13t9 j 13004 974 by 11130 134 � of 13s30 1 3130i165j5 por Tuguo Tickoo. A Nidd Aua Trun Hotl to men ibo m 19131 173.72 6993 c-7?44 these Are commercial rat and Cari. A h related Only to the use of foreign Curran .3 n cd by . Forces for official business. No. 6 in colouring contest i r and then in a twinkle Hebdon the roof the prancing and pawing Osbach Tittle Hoof. Will be Doia forget to include your dress itt below. Mail wive of if 10 cartoons not Only it a time in single envelope i Colomina contest Hie Sims and stapes 09111 9 the top will be a in each this is the sixth of 10 drawings in the slurs and stripes Christmas colouring contest. The next picture appears tomorrow. Junior dependents of anyone entitled to Logi Allol support Are urged to enter inc contest children of Stan and stripes employees Ait nol Eligi ble my try to win one of the three prizes to be awarded in two categories. Here Are the rules contestant son divided into two groups Igei 3-7 and 8-12. Entries must be postmarked no later thin dec. 11. Use any medium. Originality is encouraged. Decisions of the judges Bill be final. Entries become the property of the stars and stripes. No entries Iho bikes finl place winners second and lid place winners will receive othe Pec Iii prizes. Fifteen raft books will also be a Ardain each category. Read the rules be fully. They will be finished Wilf Nch drawing. Happy colouring name sponsor. Adds.,., Apo. Reminder you can mail your Cut refs fret1 of charge through inc Apo jew in Long mrs military postal service in inc upper right hand Comer of the envelope. A stamp is nol necessary
