The stock market's five-day advance stalled yesterday Thursday as fears of higher interest rates vied with reports of strong second-quarter earnings. The fears won, and stocks finished down slightly.
The Dow Jones average of 30 industrial issues was off .17 at 824.76, after rising by a total or 19.14 in the five previous sessions. Advances wound up keeping pace with declines after lagging behind for most of the day.
The higher interest rate scare came from two quarters. Federal Reserve Board Chairman G. William Miller told a House committe that he saw a rise in interest rates through the rest of the year as part of continuing inflation.
That statement made just before noon sent the market to its lowest point of the day. But stocks rebounded. "I think the market took that quite well." said Anthony Correra, a broker at E. F. Hutton. "Considering the statement he made, it was an opportunity for the market to sell off. But it didn't."
As the market closed the second piece of interest rate news came out, when the Fed said the nation's basic money supply grew $4.9 billion in the latest reporting week-one of the largest bulges ever and well over even the most pessimistic prdictions.
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.
But the market got some solace from reports of increased second-quarter earnings from several companies many of which rose on the news.
Teledyne for example reported an increase in second-quarter earnings of almost 150 percent and the stock responded in kind, rising 8 to 107.
Chase Manhattan rose 7/8 to 31 5/8. The bank holding company also reported brighter earnings, as did American Corp., whose stock rose 1/4 to 8 1/8.
Volume on the Big Board was a light 23.62 million shares. The NYSE's index of 1,500 common stocks gained .03 to 54.12.
Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, amounted to 27.04 million shares.
Standard & Poor's index of 400 industrial added to .04 to finish at 106.34. S&P's 500-stock index squeaked out a .01 increase to 96.25.
On the Stock Exchange, the market value index gained .46 to 148.62.
The NASDAQ index for the over-the-counter market finished at 120.43, up .15.