Signs of Easier Credit Bolster the Market: More Stocks Show Gain But...
NEW YORK, Jan. 28ÛÓInterest rate cuts here and abroadÛÓinterpreted as signs that credit conditions are easing significantlyÛÓalmost pulled the stock market out of its first correction of the year this week, but the attempt fell short.</br></br>For the week, the Dow Jones industrial average lost 3.12 points to 844.04. The Broader Standard & PoorÛªs 500-stock composite, however, posted a gain of 0.09 point to 8G.16.</br></br>The broadest index of all showed the marketÛªs rally continuing, as more stocks advanced than declined for the fourth straight week. There were 836 winners and 615 losers during the week, compared with 1,133 up and 362 down the week before. Now 1966-67 highs were set by 146 stocks, up from 139, and four issues touched new lows, compared with one a week earlier.</br></br>The reductions in prime ratesÛÓbegun at noon Thursday by giant Chase Manhattan Bank ÛÓ caught the Street by surprise and brought a quick turnaround in prices, On Friday, other banks began cutting their prime rateÛÓmost notably First National City Bank, which ranks just behind Chase as the nationÛªs third largest bank ÛÓ but the cuts were only from 6% to 5%%, while ChaseÛªs cut was all the way to 5%%.</br></br>Nevertheless, analysts said the moves were proof that the credit squeeEe that plagued the economy all through 1966 had loosened up considerably.