European Stars and Stripes (Newspaper) - April 28, 1991, Darmstadt, Hesse Sunday april 28, 1991 the stars and stripes a Page 17 Bull Market corralled by High interest rates new York up a the Bull Market last week turned bearish a disappointed by High interest rates and its failure to stay above 3000, the Market slumped to a disturbing loss. While no one predicted the six month Bull Market had ended analysts were worried about the Lack of economic signs to boost the Market. The Dow Jones Industrial average finally broke through the 3000 Barrier april 17, but since then the Market has rapidly retreated managing marginal gains. The Market dropped heavily monday and thursday and had a Small loss Friday and Small gains tuesday and wednesday. The Dow fell 8.66 Friday to end the week at 2912.38. For the week the Dow dropped 53.21, or 1.7 percent. Broader Market indexes like the new York Stock Exchange composite Index and Standard amp poor a 500 Index also fell. A amp pcs 500-Stock Index dropped 5.18 to end the week at 379.02. The new York Stock Exchange composite Index decreased 2.96. Declines led advances 1,203-698 among the 2,219 nose issues traded last week. Weekly big Board volume totalled 1,006,530,830 compared with 1,243,055,400 the prior week and with 823,598,900 a year ago. Depressed by the poor Economy and stagnant interest rates the Market dropped fell 37 Points monday. Analysts said the Federal Reserve Board probably will not lower interest rates soon. Tuesday the Market managed a gain of about 2 Points breaking a three Day losing Streak. The Dow had not risen since april 17, when the Market closed above 3,000 for the first time. A late wave of computerized program buying wednesday pushed the Market up for a second straight Mutual funds Day. The Bond Market Rose after yields fell which also helped the Market gain about 19 Points. Traders disappointed at the prior Days puny Advance sold stocks heavily thursday pushing the mar act Down to a 28-Point loss. Program Selling intensified the downward movement. I 0, More Selling and troubling statistics sent Dow Down to an 8-Point loss. Traders worried about the fall in the Gross National product which dropped 2.8 percent in the first Quarter and the Rise in the Gnu fixed weight Index a key inflation measurement which climbed 5t percent. A obviously the markets failure to stay above 3000 was disheartening a said Hugh Johnson chief investment officer for the first Albany corp. In Albany . This Points out that there is nothing magical about 3004 or 2900. Fundamentals still matter. There is still a serious question whether we can get an economic recovery to support stocks at current Levels. The fed is reluctant to reduce Short term interest rates without compromising its reputation As inflation therefore a we could Sec a three to six month hiatus in the Bull Market a Johnson said. Hildegard Zagorski Market analyst at Prudential securities inc., said a a lot of people thought the Market would go through 3000 and that would be the end of the rally and thattus what happened. Investors Felt the fed had no intention of lowering interest rates and that put a halt to any she added a Many companies had poor earnings numbers for the first Quarter and then you had profit taking which is understandable after the Market went up about 700 from its recent Low oct. It to its record High of ,3.004.46 on april 17, the Market gained 638 Points or 27 percent. On the trading floor last week Saatchi amp Saatchi was the most Active Stock Down % to l vat. A group of investors including Laurence , chairman of lbs sold part of its holdings in the advertising firm. Compaq computer which had higher earnings but warned the second Quarter could be Hurt by Price cuts was second most Active arid fell 9ya to 50%. At amp to which moved closer to completing its takeover of nor coro., was third and Rose a to 38. Nor was also Active up 7 i to 103%. Philip Morris which had a 21.5 percent net income gain in the first Quarter was the fourth most Active off % to 67%. A. A a a Boeing co. Was fifth Down % to 46%. The air Force chose a team headed by Lockheed general dynamics and Boeing to build the latest generation of fighter planes. Ism which introduced new personal computers and Cut prices on some others also was Active off 2% to 107%. On the american Stock Exchange the amex Market value Index fell 0.33 to close Friday at 363,87, Down 6.96 for the week. Declines led advances 518-311 among the 990 issues traded for the week. Amex volume totalled 68,766,330 compared with 72,082,075 traded a week earlier and 79,185,760 traded in the same week a year ago. 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