University Daily Kansan, February 25, 1983
Predicted oil price drop sends stock market soaring
From staff and wire reports.
Stock prices soared to all-time high levels yesterday, propelled by predictions that cheaper oil prices would cut inflation and spur the economic recov-
The Dow Jones Industrial average jumped 24.87 points in heavy trading, closing at a record 1,121.81, well above the previous high of 1,097.10 set last week. It was the first time the index of chip-stocks ever closed above 1,100.
Lawrence area stock brokers agreed that the market rally signaled the beginning of economic recovery due to an expected decrease in oil prices.
Stephen Hill, an account executive for Dean W尾 Reynolds, Ninth and
Massachusetts streets, said that he had been so busy that he had not had time to check the total volume of sales for the day.
"It was definitely an exciting day," he said.
HARLEY CATLIN, an account manager for Edward D. Jones & Co. 901 Kentucky St., said, "Any day that you trade 113 million shares is one remarkable day. That's the amount that we used to trade in a couple of weeks when the market was at 780. It's a very good time to be in the stock market."
Investors who reacted nervously to news of a possible OPEC price war earlier in the week, seemed encouraged by the change. But the prices would translate into a better economy and not an international financial collapse.
A string of good economic reports helped push the market to its peak, and some analysts said the long Wall Street rally would lead to another extended
"I see this as the beginning of a major bull market," Catlin said.
He said he expected the stock market trading could rise from its present level of 1,100 to between 1,300 and 1,700 during the summer.
J. D. UNDERWOOD, resident manager of Kidney Peabody Co., 647 Massachusetts St., said that he could foresee the market declining for a short while but extending above the present limit during the second half of the year.
"The market is getting frothy," he said. "We are seeing it extend on the up side and I don't feel that we can expect a major advance without a consolidation and a pull-back period."
Hill said that the market rallied yesterday for three reasons.
"No one really knows the real reason that the market railed so strongly, but it appears to have been a combination of the economy finally gathering strength; OPEC is going to have a very hard time keeping oil prices from falling; and the market broke its own psychological barrier," he said.
The "psychological barrier" is an arbitrary limit that acts as a trading tool.
CATLIN SAID that the barrier was 1,000 two months ago and had been 1,100
The Dow, 1,00 level had been forming a barrier against the market's rise for weeks. Many investors had ordered their brokers to sell automatically
whenever the Dow hit that level, and analysts said a strong momentum was over.
Chester Pado of G. Tsu & Co. in Los Angeles, said, "It's been challenging this area forever it seems. It finally got through. Once you break through a former high you tend to get people jumping on the bandwagon."
Area stock brokers said that the number of Lawrence investors had grown slightly since the market began to improve five months ago.
Underwood said, "The effect in Lawrence has been extremely good. Investors have been purchasing GE, IBM and Kansas Power and Light."
MAJOR OIP, stocks closed up yesterday, indicating that investors had decided OPEC could control the drop in prices and prevent a collapse in the oil
market that might endanger U.S. bank loans overseas.
The brokers agreed that the possibility of Ohio pricing wars would affect the lenders.
"It's a mixed bag," Underwood said. "It is favorable for most stocks as long as the price for oil does not collapse. There are some banks that have loaned money to oil producers in foreign countries and even in the United States. They would be in big trouble if the price declined too far."
If the prices decline drastically,be said,the companies would be unable to repay their loans.
Hill said, "With the OPEC prices possibly falling, that would mean that we will have more money to spend on things other than gasoline."
The Jazzhaus
9261/2 Massachusetts
PRESENTS
TONIGHT AND SATURDAY Pianist/Vocalist Mose Allison
"The man's voice was heaven. So cool, so decisively hip . . . a rai, cool, relaxed, genuine, funky hipped out HERO . . . Mose was MY MAN"
-PETE TOWNSEND lead guitarist of THE WHO
- Moe Alison's last MIDWEST appearance was at Hoch Auditorium in 1974. Don't miss the chance to see this truly legendary blue-shirt in the intimate surroundings of the orchestra.
Lawrence, Kansas
913-749-3320
THE FIRST ROUND SHOULD BE A “DOUBLE” TO BREAK THE ICE.
Breaking the ice is a job for a good host and hostess . . . not for a bottle.
You must have more to “give” your supers just alcohol.
Drinking Myth of the Week
AFRO-AMERICAN FREEDOM AND THE U.S. CONSTITUTION
The Student Assistance Center
Public Forum
SUNDAY, FEBRUARY 27 at 3:00-4:00 p.m.
SUNDAY, FEBRUARY 27 at 3:00:4:00 p.m.
Hawley Auditorium, V.A. Medical Center, 2200 Gage Bldd. Topeka
Sponsored by the EEO Subcommittee and the Special Events Committee of
the COLMERY-O'NEIL VETERAN'S MEDICAL CENTER and funded in part by a grant from the Kansas Committee for the Humanities, an affiliate of the National Endowment for the Humanities.
"Freedom and the Civil Rights Movement:
Afro-Americans and the U.S. Constitution after 1954"
Lecturer: WILLIAM M. TUTTLE; KU History professor and author of Race Riot: Chicago in the Red Summer of 1919, New York, 1970
on Leader: Dorothy Pennington, KU Speech professor
Funded by Student Senate'
HIGHER EDUCATION WEEK
Friday
Much Ado About Nothing Murphy Hall, 8:00 p.m.
University Singers Spring Concert
Saturday
Ball Rm. 8:00 p.m.
Inspirational Gospel Voices
Swarthout, 8:00 p.m.
AWARDS BANQUET
Featuring Bill Kurtis
—Co-anchor C.B.S.
Morning News,
Ballroom Kansas
Union, 6:30 p.m. For reservations call
864-3710
The U.S. Constitution and the Black American
The University of Texas
Black History Month
February 1983
Gospel Extravaganza
Friday, February 25, 1983
Featuring the "Inspirational Gospel Voices" of the Block Student Union Chair and other
Friday, February 25, 1983
8:00 p.m., Ballroom, Kansas Union
Nn Admission Fee
Sponored by Black Student Union Choir For more information on admission charges, contact the KU Office of Minority Affairs, 324 Strong Hall, 864-4351.
This onnouncement sponsored by the BSU, funded by Student Activity Fee
BRAZILIAN CARNAVAL FEBRUARY 26TH AT THE HOLIDOME FROM 8:00 PM TILL 3:00 A
2oo w turnpike access road
FROM 8:00 PM TILL 3:00 AM
TICKETS AT
$3.00
SPANISH & PORTUGUESE DEPT.
HOLIDAY INN HOLIDOME
Want to go early? from noon till 8:00 pm the Holiday Inn Holidome will be celebrating its first anniversary in Lawrence with Brazilian food specialities, drinks, exotic exhibits, games for the kids & prizes for the adults.
At 7:00 PM there will be a drawing for TWO ROUND-TRIP TICKETS TO RIO DE JANEIRO—sign up early and be there for the drawing.
BYOB—SETUPS AVAILABLE DANCE TO THE BEAT OF DIFFERENT DRUMS— expose your beautiful self to the warm and pulsating music of Brasil.
PARTY THE BRAZILIAN WAY—
It's an entirely new concept.
**IN A NUTSHELL:** Carnaval (Mardi Gras to the French) was conceived long ago as a religious Festival, used as an excuse to indulge in all kinds of secular pleasures . . .
Today, thank god, it is still the best excuse to party, indulge, and have a jolly good time—and you can bet three bucks that Brazilians are pretty religious about partying—that's why they are bringing their Carnaval to you!
BRAZIL & PORTUGAL CLUB
.