Wall Street Scene (2)
Split the Dow Jones industrial average? Newton Zinder, an analyst at E. F. Hutton, the brokerage house, says it might not be a bad idea: "Getting and staying above 500 would probably be no problem at all." Moving and staying over 1,000, however, presents a completely different problem, as was obvious last week as the Dow average closed the week at 992.80, after flirting with the 1,000 mark all week. On Monday, for example, it spurted 17.02 points, closing at 1,002.79; but it lost 10.26 the next day.
Interest rates continued to fall last week although the rally in the bond market ended abruptly at the week's end, when traders realized the extent of government borrowing this week.
Investor interest continued to center on possible "takeover" targets. Among those caught up in the maelstrom were Newmont Mining, Phelps Dodge, First Charter Financial, and Schlitz Brewing. Brokerage house stocks also reacted positively after Prudential Insurance Company announced it was offering $32 a share for Bache Group, the parent of Bache Halsey Stuart Shields Inc., the large brokerage house.