Market Falls 16.22 Points: Stock Market Falls 16 Points After Kaufman's Remarks
NEW YORK, May 4-Stocks fell sharply today in moderate trading following a prediction of markedly higher interest rates by Salomon Brothers Inc. economist Henry Kaufman.</br></br>The Dow Jones industrial average, the most closely followed stock market indicator, closed at 1,165.31, off by 16.22 points, as only two of the 30 stocks that make up the average advanced, while 24 declined. Another four issues remained unchanged.</br></br>After one hour of trading todayÛÓ before KaufmanÛªs statement that interest rates are likely to move ÛÏspectacularly higherÛ reached the stock exchangesÛÓthe market was generally flat, with the Dow industrials off less than one point. Within a half hour of the news of KaufmanÛªs speech, industrials were down more than six points and the the indicator eventually dipped more than 20 points before recovering some of its early losses in late trading.</br></br>Analysts attributed the marketÛªs move to KaufmanÛªs remarks. In general, highly publicized negative projections by well known economists like Kaufman move widely traded</br></br>The interest-rate-sensitive bond market, soured because of the Kaufman predictions and continuing positive economic indicators, was off today in moderate trading. Long government bonds, for instance, dropped by one and seven-thirty-seconds of a point to end at 91 and twenty-five thirty-seconds for the trading session.