New Rates Send Market Down as Expected: Losses Cut Late in Day
NEW YORK, Nov. 24 CAP)ÛÓThe stock market reacted according to past performances today, declining on news of higher interest rates.</br></br>The worst losses were in the morning. Thereafter prices improved and many plus signs were posted, but not enough to rescue the list from a decline.</br></br>The setback was moderate in the Dow Jones industrial average which declined 1.68 at 887.61 after recovering from a loss of 4.97 at the end of the first hour.</br></br>Wall Street analysts harked back to past occasions when the Federal Reserve Board had raised its discount rate and they noted that after an initial decline, the market usually continued with a higher trend, if one had been prevailing, which is usually the case during interest rate increases.</br></br>Declines based on such news are frequently viewed as buying opportunities by large investment organizations, they said, and this seemed evident as todayÛªs session wore on. In fact, among the 15 most active stocks, nine advanced and six declined.