German interest rates and oil prices went down Thursday, fueling a mild rise in U.S. stocks in continuing anticipation of modest, inflation-free growth among industrialized nations.
The Dow Jones industrial average rose 5.03 points to 3702.11 after hovering near break-even most of the day. The Nasdaq index gained 2.92 points to 766.73. Any exuberance over the economic situation was held in check pending Friday’s release of unemployment figures.
The German Bundesbank, which has kept interest rates high to restrain inflation from the cost of absorbing the former East German states, trimmed its money-market rate to 6 percent from 6.25 percent. It left other rates unchanged.
Oil prices fell to the lowest level in five years as West Texas intermediate crude lost 53 cents a barrel to close at $14.95. The price of oil has dropped 25 percent this year, draining inflationary pressures.
Oil fuels virtually all economies, especially those of highly industrialized nations.
Oil stocks fell, but not as much as in recent days. Chicago-based Amoco held its own, closing unchanged at $53.25; Chevron lost 87 cents, to $86.12; and Texaco fell 25 cents, to $63.37.
More Top Picks Doll
Chrysler increased its quarterly divided to 20 cents from 15, the first increase since it cut the payout by half in 1991. The stock fell 50 cents, to $53.50.
Bond prices fell slightly, sending yields upward, but trading was muted pending release of the employment data. The yield on the benchmark 30-year Treasury bond rose to 6.27 percent from 6.25 percent.
Retailing stocks had a bad day after many companies reported lower-than-expected sales for November. Sears Roebuck, which reported its sixth monthly sales gain in a row, nonetheless lost 87 cents, to $54.12.
Dayton Hudson of Minneapolis fell $2.25, to $68.75; and Kohl’s of Menomonee Falls, Wis., fell 50 cents, to $47.75.
Close call
Yuppies of the world can breathe again. Volvo Thursday scuttled partnership plans with French automaker Renault, which would have joined an automobile as elegant as a Brooks Brothers shoebox with an automobile that looks like a soup can.
The chairman and entire board of Volvo resigned Thursday when victory became apparent for a stockholder revolt against the proposed merger.
American stockholders responded favorably to the non-merger. Volvo’s shares, which trade on the Big Board as American Depositary Receipts, soared on the news, gaining $2.87, to $55.37.
Heartland report
Bell Sports of Rantoul fell $1.75, to $37.75, after the company said it was seeking acquisitions in Europe to help peddle its line of bicycle helmets, much coveted in the U.S. but only a niche player (22 percent market share) in Europe.
Bell’s business has been pumped up as more U.S. states enact helmet laws.
Similar safety consciousness has yet to sweep Europe, where bicycle racing with helmets resembling hairnets remains a last refuge of machoism.
Morton International, already selling automobile air bags in Germany, rose $1.75, to $95.25. Europe has become more safety-conscious about cars, if not bicycles, boding well for the Chicago manufacturer.
Chicken watch
Imitation is the most sincere form of flattery.
Roasters of Miami, which has Kenny Rogers pushing its wood-roasted chicken, says it wants to go public next spring and have the same success as Boston Chicken, the Naperville chicken vendor, which rose on its first day of trading to $48.50 from $20.
Roasters, offering a similar menu, plans to expand its 104-store operation to 1,000 stores over the next several years.
Boston Chicken has more than 160 restaurants and also is expanding.
Boston Chicken’s stock closed down 50 cents Thursday at $39.