Market Moves Ahead but Dow Lags Again
The stock market moved slightly ahead Friday but the Dow Jones industrial average failed to surmount its record high.
Broader market gauges again succeeded in reaching new peaks, however, including the composite indexes of the New York Stock Exchange and Standard & Poor’s Corp.
Advancing stocks were paced by aerospace, airline and paper issues, while retail, steel and several financial stocks retreated.
The Dow Jones average of 30 industrials slipped 0.11 to 1,289.97, leaving it short of its all-time high 1,292.62 reached Jan. 29. Still, for the week the average climbed 12.25 points.
Gainers led losers nine to seven on the NYSE, whose 65-stock composite index set a record for the fourth time this week, rising 0.21 to 105.39.
Big Board volume slowed considerably from its heavy pace earlier this week, totaling 116.46 million shares, compared to 151.73 million Thursday.
Friday’s session mirrored the market’s performance for most of the week, where the broader market extended its rally without the help of a surge by the blue chips.
The trend bodes well for the overall market, brokers said. It indicates that traders are cashing in on the blue chips’ strong January gains and, instead of exiting the market, are investing more in “secondary” and speculative issues, all of which should fuel the general rally, they said.
Wall Streeters are also encouraged that the declines in the Dow Jones industrials during this rally have been relatively modest and quickly offset in later sessions.
Chicago Milwaukee plummeted 24 1/2 to 149 3/4 after a federal judge approved the sale of the company’s bankrupt Milwaukee Road to Soo Line Railroad, whose $570-million bid was $210 million below a rival offer made by Chicago & North Western. Chicago & North Western, which then withdrew its bid, fell 1 7/8 to 25. Soo Line climbed 1 5/8 to 29.
Oakland-based Safeway Stores jumped 2 3/8 to 31 3/4 in heavy trading; the company Thursday reported higher-than-expected profits for the fourth quarter.
Also on the active list, Pepsico rose 2 to 47, Unocal gained 7/8 to 48 3/4, BankAmerica fell 3/4 to 18 7/8 and Exxon rose 1 to 47 3/4.
