Dow Eases Into Holiday Weekend

Sat., Jan. 17, 1998

Associated Press

Stocks resumed their rebound Friday after a one-day setback, but failed to sustain a broader rally before a holiday weekend that will leave Wall Street unable to react to overseas events for three days.

The Dow Jones industrial average rose more than 100 points twice during the session, but finished just 61.78 higher at 7,753.55, a gain of 173.13 for the week.

Broad-market indicators also pulled back over the final half hour. They closed with slightly larger gains before the weekend, which will be extended Monday through Wall Street’s first-ever holiday observance of Martin Luther King Jr.’s birthday.

“We ran into the normal, ‘Who knows what’s going to happen (over the weekend)?,”’ said Alfred E. Goldman, director of market analysis at A.G. Edwards & Sons of St. Louis. “But the main thing is that (the Dow) got as low as 7,443 on Monday, and then got up to 7,800. So why not take a little pause?”

Stocks opened the day higher after share prices surged on several Asian markets following whirlwind efforts by American and IMF officials to stem Asia’s financial crisis.

The main index on the Tokyo Stock Exchange jumped 6.1 percent on expectations of further government measures to stimulate Japan’s listless economy. Hong Kong shares rose 3.7 percent to cap a roller-coaster week with a slim gain.

South Korean stocks fell 3.5 percent after a week of gains, but Indonesian shares rose 6.9 percent as investors warmed to tough new reform measures. Elsewhere Friday, Thai stocks rose 5.2 percent, and Malaysian shares rose 2.8 percent.

“The (U.S.) market is responding to renewed stability in Asia and heaving a great, great sigh of relief,” said Peter Anderson, chief investment strategist at American Express Financial Advisors. “But I don’t think it changes the long-term point of view. What I expect for the rest of the year is a market that backs and fills, backs and fills, backs and fills, and goes no place.”

Bank and technology stocks, which have been battered repeatedly amid worries about their considerable exposure to Asia’s troubled economies, were buoyed by the strong day overseas.

Sun Microsystems rose 2-1/16 to 45-1/8 as the most active Nasdaq issue following late Thursday’s better-than-expected report on profits for the final three months of 1997. Microsoft, which reports earnings next week, rose 2-15/16 to 135-1/4 in active Nasdaq trading.

J.P. Morgan rose 1-3/8 to 106-7/8, Travelers Group rose 15/16 to 50-11/16, and American Express rose 5/8 to 82 to help lift the Dow. Among the major banks, Citicorp rose 2-1/8 to 119-7/8 and Chase Manhattan rose 2-1/4 to 105-1/2.

Advancing issues outnumbered decliners by better than a 2-to-1 margin on the New York Stock Exchange, where volume totaled a hefty 670.08 million shares after sinking below 600 million for only the second time this year on Thursday.

In Europe, Frankfurt’s DAX index climbed 0.9 percent and London’s FT-SE 100 rose 1.6 percent.

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are tax deductible.

Meet Our Journalists

Jesse Tinsley

Meet Jesse Tinsley. As a certified drone pilot, this veteran Spokesman-Review photographer often can be seen capturing beautiful aerial photographs of our region. Sometimes though, the job requires getting down with the dogs.
Jim Meehan

Jim Meehan is no stranger to Zag Nation. As the lead writer covering the Gonzaga men’s basketball team, he tells the stories behind the game and gets fans a bit closer to their favorite players.
Molly Quinn

There is no artist in Spokane like Molly Quinn. Her whimsical style is instantly recognizable to readers of The Spokesman-Review. She has painted gorgeous illustrations that instantly elevate the journalism accompanying it. She brings to life the stories that defy photography. She makes our pages better.
Rob Curley

Spokesman-Review editor Rob Curley loves to talk with people and learn about their lives, whether it's a best-selling author or a stranger he meets downtown on his walk to lunch. It's that inquisitive nature combined with a playful sense of storytelling that helps make our newspaper different than most.