Stocks Drift Up in Light Trading Amid Inflation Concerns

Strategic Insights -

Yesterday's trading on the stock market saw a moderate increase in stocks as market professionals held back, awaiting crucial inflation news. The bond market approached but pulled back from long-term interest rates of 7 percent. Computer-related companies benefitted from the small rally, with major players like I.B.M., Digital Equipment Corporation, Motorola, Intel, Novell, and Oracle experiencing share price rises. Trading was light, with only 260.2 million shares changing hands on the New York Stock Exchange, the second-lowest volume since February 4.

Key Takeaways:

  • Trading volume on the New York Stock Exchange was 260.2 million shares, the second-lowest since February 4.
  • Computer-related companies like I.B.M., Digital Equipment Corporation, Motorola, Intel, Novell, and Oracle saw their share prices rise.
  • The Dow Jones industrial average saw significant fluctuations, dropping as low as 3,856 and rising to 3,871 before settling at 3,862.98, up 0.28 point.
  • Since the January 31 peak, the Dow has fallen more than 115 points, or about 3 percent.
  • Some market professionals believe the Dow is in for a price correction of 5 percent or more, or at least 200 points.
  • The Federal Reserve is in a quandary, with both stock and bond market professionals calling for interest rate hikes to fight inflation.
  • The Labor Department is scheduled to report the February Producer Price Index today, which may impact the market.
  • Telefonos de Mexico's American depository receipts were the most actively traded stock, with 5.6 million shares changing hands.

Statistics:

  • Trading volume on the New York Stock Exchange: 260.2 million shares
  • Dow Jones industrial average: 3,862.98 (up 0.28 point)
  • Percentage drop in the Dow since January 31 peak: 3.01%
  • Expected price correction in the Dow: 5% or more, or at least 200 points
  • Number of shares of Telefonos de Mexico's American depository receipts traded: 5.6 million

Sources:

  • "The New York Times"
  • Federal Reserve Board
  • Labor Department
  • New York Stock Exchange
  • Chemical Securities
  • Telmex (Telefonos de Mexico)