Bonds Rally; Stocks Try To Follow --- Attempt Falls Short As Industrials Slip; Dollar Edges Higher
Bond prices recovered some of their recent losses, but not enough to put many stock investors into a buying mood.</br></br>The Dow Jones Industrial Average fell 13.29 to 2583.56, for a two-day decline of 52.03 points, or 2%. Bond traders said the advance in that market was mainly a technical reaction to Tuesday's big drop. The dollar gained slightly.</br></br>Stocks fell sharply at the opening in reaction to a plunge of more than 3% in the Tokyo stock market. Merrill Lynch advised investors to sell some shares and raise cash. Merrill, which had recommended a 50-50 portfolio split between stocks and bonds, lowered its stock portion to 45% and recommended 5% in cash.</br></br>But as U.S. issues fell overall, some investors were making selective purchases. They bought enough airline shares to push the Dow Jones Transportation Average up 16.72 to 1084.64. AMR Corp. gained 1 1/8 to 56 3/4, and UAL Corp., still considered a takeover candidate, jumped 5 1/8 to 132 1/4.</br></br>Other gainers included automotive shares such as General Motors Corp., which added 1 to 43 3/4, and International Business Machines, which advanced 2 to 104 7/8, its highest close since Oct. 20.