Stock prices rang up their biggest advance in more than two weeks Thursday, rebounding from a modest setback in the previous session.
Bank stocks posted some standout gains in a relatively busy day on Wall Street.
The Dow Jones average of 30 industrials, down 2.98 on Wednesday, climbed 10.49 to 1,260.27 for its best showing since it took a 12.15-point jump April 23.
Volume on the New York Stock Exchange reached 110.99 million shares, up from 101.27 million Wednesday.
Strategy Might Change
The market slipped a bit Wednesday on indications from Chairman Paul A. Volcker of the Federal Reserve that the Fed hadn’t taken any steps of late to relax its credit policy.
But analysts noted that Volcker also hinted at the possibility that the central bank’s strategy might be changed when its policy-setting Open Market Committee meets May 21.
Interest rates dropped in the credit markets Thursday as investors awaited the results of the third and final day of the Treasury’s quarterly sale of bonds and notes.
Meanwhile, investors’ spirits apparently got a lift from reports that President Reagan was planning to retain favorable treatment for long-term capital gains in his forthcoming tax-reform proposal.
In the bank sector, Bankers Trust New York rose 1 3/4 to 68, Banc One 3/4 to 31 1/8, Citicorp 1 1/8 to 47 7/8, Republic New York 2 to 48 3/8 and Amsouth Bancorp 1 1/8 to 29 3/8. All five of those issues made the list of stocks hitting 52-week highs.
Mattel rose 1 to 13 5/8. The company reported an operating profit of 25 cents a share for the first quarter, against a loss from operations in the comparable period a year earlier.
K mart, which posted a 12.9% sales increase for April while most other retailers turned in mixed results, gained 3/4 to 35 3/8. Other retail issues typically recorded smaller gains.
Trans World Airlines rose 3/8 to 16 1/2. After the close, financier Carl C. Icahn said he and companies he controls had acquired 20.5% of TWA’s stock.
In the daily tally on the Big Board, more than two issues rose in price for every one that declined. The exchange’s composite index moved up 0.75 to 105.31.
Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 130.29 million shares.
Standard & Poor’s index of 400 industrials rose 1.37 to 201.45, and S&P;'s 500-stock composite index was up 1.30 at 181.92.
The NASDAQ composite index for the over-the-counter market gained 2.20 to 283.27.
At the American Stock Exchange, the market-value index closed at 226.64, up 1.57.
The Wilshire index of 5,000 equities closed at 1,876.306, up 14.108.
Large blocks of 10,000 or more shares traded on the NYSE totaled 2,238, compared to 2,019 on Wednesday.
Bond prices rose in moderate trading as the Treasury Department completed a record week of borrowing.