Dow Rises 4.82 to New High in Mixed Market

The stock market’s blue chips extended their record advance Tuesday, but prices overall finished mixed in active trading.

Retail and auto stocks paced the gainers, while telephone, computer and financial issues were among the casualties.

The Dow Jones average of 30 industrials rose 4.82 to a record high 1,309.70 after spurting nearly 20 points Monday to climb above 1,300 for the first time.

Broader market averages edged lower, however, and declines slightly led advances among all New York Stock Exchange-listed issues.

Big Board volume totaled 130.15 million shares, against 146.25 million Monday.

Prices opened mostly lower and remained on the downside for much of the session, apparently reflecting profit taking by investors cashing in on the market’s sharp gains Monday. Weakness in the credit markets, where bond prices edged lower, also tempered interest in stocks, traders said.

Avoided Severe Pullback

But some analysts said they were encouraged that the market avoided a severe pullback from its rally Monday, with 223 NYSE-listed stocks still able to reach 52-week highs.

“After the kind of lavish run it had, it’s entitled to a day or two of correction,” said Michael Metz, technical analyst at Oppenheimer & Co. “From that standpoint, the market’s action was encouraging. It really didn’t give up much ground.”

Metz added, however, that “it’s still an open question whether there’s enough money around to send this any higher. The real key to the market is some revival in the interest in stocks by the non-institutional sector (individual investors). But that interest remains questionable.”

The gains have followed a half-point cut, to 7.5%, in the Federal Reserve’s rate on its loans to financial institutions and a companion reduction in major banks’ prime lending rates to 10% from 10 1/2%.

Wall Street is hopeful that the decline in lending charges will fuel a revival of economic growth, and corporate earnings, during the rest of 1985.

Unocal plunged 10 1/8 to 35 7/8 to lead the NYSE’s percentage losers.

Trans World Airlines was unchanged at 17. Investor Carl C. Icahn, who controls 25% of TWA’s stock, offered $18 for each of the carrier’s remaining shares.