European Stars and Stripes (Newspaper) - August 26, 1990, Darmstadt, Hesse Sunday August 26,1990page 16 the stars and stripes sunday August 26,1990 Market off sharply As Gulf tensions escalate4 t new York up the Stock Market weighed in with its second worst week of the year and sixth straight weekly loss last week As investors nervous about an escalation of tensions in the persian Gulf dumped their holdings. The Dow Jones Industrial average ended the week on an up note surging 49.50 Friday to close at 2532.92, but lost .111.88 Points 4.2 percent on the week. Its worst weekly loss this year came in the week that ended Jan. 26, when the Blue Chip indicator fell 118.67. Points. Last week s loss was the eighth biggest weekly loss Ever for the Dow. Broader Market indexes followed suit with Stan Dard & poor s 500-Stock Index losing 16.32 to end the week at 311.51 and the new York Stock Exchange composite Index falling 9.14 to close the week at 171.05. Declines thumped advances 1,785-219 among the 2,166 nose issues traded last week. Weekly big Board volume totalled 949,523,020 shares compared with 739,842,760 a week earlier and 829,815,720 shares a year ago. Prices closed mixed monday in very Light trading As the Mideast crisis seemed to reach a stalemate. The biggest development of the Day saw president Bush Call the americans trapped in Kuwait hostages. The administration had avoided the a word until that Point. But that was the Calm before the storm. Over the next three Days the Dow plunged 173.01 Points As fears of a War in the Gulf gripped the Market. On tuesday reports of iraqi missiles said to be deployed near the saudi Border sent the Dow tumbling More than 50 Points. On wednesday at a news Confer ence Bush refused to Rule out the use of Force in the Region. And on thursday with no dramatic developments from the Mideast investors had plenty of time to work themselves into a Stew Over the week s events to that Point. The 76-Point plunge in the Dow that Day was the third biggest loss of the year coming on the third Hea Viest volume of the year and took the Dow Down to its first close below 2500 since july 1989. But As the week ended a break in the surge in Oil prices and bargain Hunting after the debacle thursday sparked a 50-Point Rise in the Blue Chip Index but Only made a Dent in the week s loss. As for the drop below 2500, Ron Doran director of institutional trading at . King and associates in Albany n.y., said he did not think it was particularly significant. There s still a lot of uncertainty about what will happen in the Mideast but i think most people think the Market will always Bounce Back and that this fall will be no different he said. I hopeful but i Don t know if that s realistic said Doran. There Are some great values out there but there s a lot of reluctance by portfolio managers to Diye in and be aggressive. They re paralysed a Little and rightfully Doran said one Factor that has weighed in the mar Ket s favor even during this plunge which has taken the Dow Down More about 415 Points or 14 percent since Iraq invaded Kuwait on aug. 2, is that investors have not rushed to dump shares in Mutual funds As they did during the Market s crash in 1987. But Dennis Jarrett chief Market strategist at kid Der Peabody & co., said even a peaceful Resolution of the Gulf crisis May not mean the Market is free and Clear to resume a Long term rally. Even if it is All resolved we could rally 100 Points in the Short term but when you re Down 500 Points from the highs reached in july what does that mean Jarrett asked. And whatever happens there will be critical to the Price of Oil. The longer it takes to resolve the longer Oil prices will stay High and then the Economy and inflation will have to be reassessed in that Conte the said. We re not out of the Woods even once this is on the trading floor last week Philip Morris was the most Active Issue off 2 to 43 a. Wal Mart stores followed off i to 26%. General electric was third Down 2 5/ to 61 %. Among the other Blue chips at to lost 1 /2 to 31 ism fell 1 to looks Boeing tumbled 25/� to 45%, Exxon slumped 3 a to 48% even As Oil prices fell sharply last week Eastman Kodak fell 2 to 383/ and coca cola Sank 3 to 39. All the 20 most Active issues on the big Board last week lost ground. On the american Stock Exchange the amex Market value Index Sank 17.32 to close Friday at 316.29. De Clines pummelled advances 769-113 among the 1,01.1 issues traded. Amex volume totalled 93,796,575 shares compared with 69,436,080 traded a week earlier and 68,410,090 traded in the same week a year ago. Salomon s put warrants on the Tokyo Market s Nik Kei Index led the amex actives up 21/ to 16 is. 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