|
Dow Falls on Caution Ahead of Data, Strong Dollar; Expiry Weighs
PR Newswire - August 12, 1997 17:36
%FIN V%PRN P%PRN
NEW YORK, Aug. 12 /PRNewswire/ -- Share prices ended sharply lower
on Tuesday due mainly to caution ahead of key economic data that may
calm or worsen concerns over inflation, Market News Service reported.
The Dow Jones industrial average dropped 101.27 points to
7960.84, while the S&P-500 index fell 10.47 to 926.53. Volume on the
New York Stock Exchange was a light 498.9 million shares, with 1,253
advancing, 1,549 declining, and 563 unchanged.
Dealers attributed the fall in the Dow to tension over
Wednesday's retail and producer price reports and Thursday's consumer
price index. Friday's options expiration was also cited as a negative
factor.
Some dealers said strength in the dollar hurt exporters, which
extended the Dow's tumble. Large exporters losing on the session
included Procter & Gamble down 4 1/8 at 142 7/16, Merck fell 1 5/8 to
93 5/8, and Caterpillar down 11/16 at 58 9/16. Deere was also down 1
9/16 at 55 3/8 despite posting earnings which jumped 24% in the third
quarter.
Mace Blicksilver, chief dealer at Credit Lyonnais, attributed the
poor performance of multinational companies during the session to "a
realization of the strong dollar."
Blicksilver also noted this Friday's options expiration as a
factor which might be "exacerbating the 8,100 level" as trading
becomes more volatile.
James Solloway, chief strategist at Argus Research, said that
although expiries will influence the market. "Friday's expiration will
skew volumes more than prices" and could even get overshadowed or
"offset" by the release of economic data.
But Solloway added that if the economic data released this week
suggests growth "greater than that which the Federal Reserve would
like to see," then these indicators "could exacerbate Friday's expiry
even more."
Analysts expect firm retail sales after a solid July as demand
held steady. Wal-Mart was down 1 1/16 at 35 15/16, after the retail
giant posted second-quarter earnings which met analyst expectations
with its net income rising 13%. J.C. Penney rose 1 15/16 to 60 1/16,
after announcing better-than-expected second-quarter earnings which
slipped 3.3% from last year.
Chrysler was down 3/16 at 36 1/16 after winning a $232 million
tax break for opening a jeep assembly plant in Toledo, Ohio.
But technologies exhibited strength, all except Apple Computer
which fell 2 1/2 to 22 1/16, after announcing it expects losses for
its fourth fiscal quarter, and fallen sales. Gainers in the sector
included IBM up 3/8 at 103 3/8, Dell up 2 1/4 at 78, and Motorola
rising 5/16 to 80 1/4.
SOURCE: Market News Service
NOTE TO EDITORS: Market commentary from Market News Service is
transmitted on a daily basis by PR Newswire.
|
