Closing Market Report

Star-Bulletin news services

Wednesday, June 19, 1996


Dow industrials gain 20.32

NEW YORK -- Blue-chip issues managed some gains on Wednesday, but stocks were mostly lower with bonds as investors continued to show hesitancy in advance of the Federal Reserve's meeting on interest rates in early July.

The Dow Jones industrial average rose 20.32 to 5,648.35. But that was down from a gain of 46 points earlier in the afternoon.

Decliners topped advancers by 1,379 to 968 on the New York Stock Exchange. NYSE volume totaled 375.29 million shares vs. 363.82 million in the previous session.

"It was a really unconvincing bounce. This is a market that shows no conviction," said Larry Rice, chief investment officer at Josephthal, Lyon & Ross.

In broader markets, the NYSE composite fell 0.26 to 355.32, and the S&P 500-stock index slipped 0.10 to 661.96.

The Nasdaq composite was off 4.17 at 1,178.91, and the American Stock Exchange's market value index fell 0.06 to 588.93.

At midday, the Federal Reserve reported that the economy continued to grow at a moderate pace in May and early June, with most regions showing expansion and several indicating some acceleration in business activity.

Labor markets remained competitive in most regions, but indications of rising wages remained scattered, according to the Beige Book report on regional business conditions, which Fed policy-makers use as the basis for their periodic discussions on interest rates.

While there was some inflation in wholesale prices, evidence of inflation at the retail level was more scarce, the report added.




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