Stocks End Five-Day Advance; Higher Interest Rates Feared
Associated Press NEW YORKÛÓThe stock marketÛªs five-day-long advance stalled yesterday Thursday as fears of higher interest interest rates vied with reports, of strong second-quarter earnings. The fears won, and stocks finished down slightly.</br></br>The Dow Jones average of 30 Industrial issues was off .17 at 824.76, after rising by a total of 19.14 in the five previous sessions. Advances wound up keeping pace with declines after lagging behind for most of the day. Û÷ '</br></br>The higher interest rate scare came from two quarters. Federal Reserve Board Chairman G. William Miller told a Eouse committee that he saw a rise in interest rates through the rest of the year as part of continuing inflation</br></br>That itatement made just before noon sett the market to its lowest point of the day. But stocks rebounded. ÛÏI Ihink the market took that quite well,Û said Anthony Correra, a broker at E. F. Hutton. ÛÏConsidering the statement he made, it was an opportutity for the market to sell off. But it didnÛªt.Û piece of interest rate news came out, when the Fed said the nationÛªs basic money supply grew $4.9 billion in the latest reporting weekÛÓone of the largest bulges ever and well over even the most pessimistic predictions.</br></br>Analysts feared that a too-large increase in the money supply could force the Fed to once again take action to raise interest rates, which in turn would cut down the money supply.