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Computer industry

Market Volatility: IBM's Strength Lifts Dow Amid Quiet Trading

Strategic Insights

— 1 min read

The New York Stock Exchange (NYSE) witnessed a quiet trading session early Monday, with stock prices experiencing profit-taking following the previous Friday's record-setting session. However, strength in IBM helped lift the Dow Jones industrial average above negative territory. The Dow, which had reached a new all-time high of 3914.48 on Friday, was up 1.69 points to 3916.17 at 11 a.m. EST. The NYSE composite index slipped 0.44 to 262.68, while the Standard & Poor's 500-stock index dropped 0.83 to 473.89.

Key Takeaways:

  • The Dow Jones industrial average opened ahead 1.69 points to 3916.17, despite initial declines, due to strength in IBM.
  • IBM, considered a strong buy by Fidelity computer analyst Harry Lange, rose 2 to 57, making it the second most active issue on the NYSE.
  • Profit-taking was evident in the market, with declines outnumbering advances 967-769 among the 2,469 issues traded on the NYSE.
  • Volume was approximately 92,870,000 shares, a decrease from the 113,660,000 shares traded in the same period on Friday.
  • Treasury securities and the U.S. dollar experienced slight declines, while the Japanese yen weakened against the dollar.
  • The Tokyo stock market suffered losses due to domestic political turmoil, with the Nikkei Average plummeting 954.19 points, or 4.94 percent, to 18,353.24.

Statistics:

  • The Dow Jones industrial average rose 22.52 points to a new all-time high of 3914.48 on Friday.
  • The NYSE composite index fell 0.44 to 262.68, while the Standard & Poor's 500-stock index dropped 0.83 to 473.89 on Monday.
  • IBM rose 2 to 57, making it the second most active issue on the NYSE.
  • The Tokyo stock market's Nikkei Average plunged 954.19 points, or 4.94 percent, to 18,353.24.
  • The Dow industrial average has only three "down" days this year, but has set record highs nine times and broken two "century" marks.

Sources:

  • Barron's (weekly financial paper)
  • New York Stock Exchange (NYSE) tape
  • Fidelity (computer analyst Harry Lange)
  • Smith Barney Shearson Inc. (senior technical analyst Donald Kimsey)

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