European Stars and Stripes (Newspaper) - August 12, 1990, Darmstadt, Hesse Page 16 the stars and stripes sunday August 12,1990 stocks lose ground for 4th consecutive we knew York up the Stock Market rang up its fourth straight weekly loss last week As the turmoil in the Middle East sent Oil prices surging and investors running for cover because of revived inflation fears. The Dow Industrial average plunged 42.33 Friday to close at 2716.58, losing 93.07 Points or 3.3 percent. Of the Broad Market indexes Standard and poor s 500-Stock Index lost 9.34 to end the week at 335.52 and the new York Stock Exchange composite Index fell 4.67, to close the week at 184.15. Declines pounded advances 1,459-501 among the2,180 issues traded last week. Big Board volume total de 963,579,960 shares compared with 1,042,535,030 week earlier and 1,004,028,870 shares a year ago. On monday the Index plummeted More than 93 Points its biggest loss since october 1989, the 190-Point plunge which has come to be known As the "mini-crash.". Trading was very heavy As the Market was rocked by escalating tensions in the Mideast and surging Oil Oil futures for september delivery Rose $ 1.77 on the week despite losing $2.35 wednesday amid reports that saudi Arabia was increasing production to make up for the disruption of supplies from Iraq and american troops began to arrive in saudi Arabia wednesday and thursday investors seemed to take heart that there was now a policeman in the conflict. Stocks rebounded wednesday and thursday but by Friday investors became nervous about How events might unfold and either sold or took to the sidelines sending prices Down sharply. The Mideast remains the focal Point for the mar Ket said Alan Ackerman senior vice president at Gruntal & co. There still is no Clear idea about what will happen there the . Is increasing its commit ment but Iraq shows no signs of backing but other analysts even with the Sharp drop Friday seemed encouraged by How the week progressed. I think we panicked Early in the week said Don Hays,.director of investment strategy at wheat first securities inc. In Richmond a. The Bottoms of most stocks were made monday and Texaco was the most Active Issue last week off 1 i to 63 As the rally in Oil issues cooled As the week went aluminium followed off 7/g to 22 i. Wal Mart stores was third off Viz to 297/8 after a lacklustre july sales report. Among Blue chips at to lost i to 35, Philip Morris fell 5/s to 457/s, general electric tumbled 3 to 665/8, general motors Sank 3% to 39 /2, ism tumbled 4% to 102, and Exxon was off 1 /2 to 51 is. Iraq crisis May bring some benefits los Angeles a the iraqi american stand off is unlikely to change the Overall downward trend in defense spending but certain companies could Benefit by arms sales to saudi Arabia and other countries analysts said. Although the confrontation has heightened prospects for an International recession some opportunities Are also unfolding said Richard Rosecrance. A political science professor at the. University of califor Nia los Angeles. The net effect is probably going to be inflationary whatever the Short term effect May be said Rose Crance associate director of the Center for International and strategic affairs. Iraq s invasion of Kuwait has already cooled congressional ardor to make aggressive defense spending reductions. It probably will mean the defense cuts will be a Little bit less than they otherwise would be said Alexis Cain of the private defense budget project. The defense Industry is one of the largest components of California s $700 billion Economy. Recent drives to Cut defense spending have caused thousands of layoffs. Several defense Industry executives declined to com ment on the Impact the Mideast crisis could have on South Ern California s armaments Industry. My guess is . Defense spending will continue to decline said Lawrence Harris a defense Industry analyst for Bateman Eichler Hill Richards a los Angeles brokerage firm. But Raythelon general dynamics corp., and certain other . Makers of missiles tanks and warplanes could get new orders from foreign countries especially saudi Arabia and Israel Harris said Friday. 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