Dow Steadies After 2-Day Advance, Closes Off 0.19%

The New York stock market steadied today after its strong advance over the past two sessions.

The market’s performance was unsurprising: many Wall Street watchers had expected stocks to bump into some profit-taking.

“I think in some ways today was kind of a day off,” said Hugh Johnson of First Albany Corp. “It was a day of rest after the good days we’ve had recently.”

Trading slowed in the afternoon as market participants closed out positions ahead of the weekend.

The Dow Jones average of 30 industrials finished almost even on the day at 2,635.24, off 0.19. It ended the week with a gain of 27.88 points.

Advances Lead Declines

Advancing issues outnumbered declines by about 6 to 5 on the New York Stock Exchange, with 800 up, 663 down and 497 unchanged.

Big Board volume totaled 180.61 million shares, against 213.68 million in the previous session.

The NYSE’s composite index rose 0.16 to 190.38.

At the American Stock Exchange, the market value index declined 0.84 to 374.51.

A government report showing U.S. personal income edged up 0.3% in June while consumer spending fell slightly after adjustment for inflation boosted bond prices, sending interest rates lower, a movement which was welcomed by the stock market.

“Good things happened in the bond market and because good things happened in the bond market the stock market was able to handle the profit taking that occurred very easily,” said Johnson.

The U.S. Treasury’s benchmark 30-year bond was up 1/2 point, or about $5 per $1,000 in face amount late this morning, after gaining nearly one point in the previous session. Its yield, which moves inversely to price, fell to 7.98% from 8.02% late Thursday.

In the secondary market for Treasury bonds, prices of short-term governments rose between 5/32 and 3/16 point by late morning, intermediate maturities advanced between 9/32 point and 3/8 point and long-term issues gained 5/16 point to 9/16 point, the Telerate Inc. financial information service reported.

The federal funds rate, the interest on overnight loans between banks, was trading at 8 15/16%, down from 9% late Thursday.