Surge Near End Spurs Stocks to Record Highs

From Time Wire Services

The stock market came on strong near the close to post new record highs Thursday, overcoming some early profit taking.

Analysts said the advance was impressive, coming as it did without the help stocks have been getting lately from falling interest rates.

The Dow Jones average of 30 industrials, which was off more than 5 points in the early going, closed with a 6.72 gain at 1,327.28.

Volume on the New York Stock Exchange hit 117.18 million shares, compared to 143.87 million Wednesday.

Taking Profits

Analysts said traders were apparently intent on taking profits in both the stock and bond markets early Thursday. Interest rates on Treasury bills and bonds rose slightly.

General Motors was a standout in Thursday's trading, jumping 2 3/4 to 74 7/8. On Wednesday, the company was announced as the winner of the bidding to acquire Hughes Aircraft.

Computer and technology stocks, which had been notably weak in Wednesday's activity, rebounded. International Business Machines gained 1 to 129 3/4, Digital Equipment rose 1 5/8 to 100 5/8, Hewlett-Packard gained 1 3/8 to 34 1/8, Texas Instruments rose 2 7/8 to 92 3/8 and Data General climbed 1 to 35.

Among American Stock Exchange-listed technology issues, Wang Laboratories class B shares rose to 15 3/4 and Dataproducts rose 3/4 to 11 1/2.

Retailing issues were steady to slightly higher as major companies in the industry posted mixed sales results for May. Sears, Roebuck added 1/8 to 39, J. C. Penney climbed 3/8 to 51 and K mart rose 1/8 to 39 3/8.

H&R; Block rose 1/2 to 58 1/8, trading at record highs. When President Reagan announced his tax reform proposal late last month, the stock sold off briefly, but it has since rebounded.

The NASDAQ composite index for the over-the-counter market edged up 0.08 to 291.85.

At the Amex, the market-value index closed at 229.29, down 0.48.

Large blocks of 10,000 or more shares traded on the NYSE totaled 2,301, compared to 3,016 on Wednesday.

Bond prices slipped.

The Treasury sold $8.5 billion in 52-week bills at an average discount rate of 7.18%, down from 7.94% at the previous auction and the lowest since 7.07% on a similar issue May 2, 1978.

In the secondary market for Treasury bonds, prices of short-term issues were down 1/32 point, intermediate maturities were off 5/32 point to 10/32 point and long-term issues were off as much as 13/32 point, according to the investment firm of Salomon Bros.

Industrials Drop

In the corporate markets, industrials were off 1/2 point and utilities were down 3/4 point in light activity. Among tax-exempt municipal bonds, general obligations fell point and revenue bonds were unchanged, Salomon Bros. said.

Yields on three-month Treasury bills rose 2 basis points--or hundredths of a percentage point--to 6.97%. Six-month bills rose 3 basis points to 7.01%, and one-year bills were up 4 basis points at 7.18%.

Yields on 30-year Treasury bonds inched up to 10.31% from 10.27% on Wednesday.

The federal funds rate, the interest on overnight loans between banks, traded at 7.675%, down from 8.125% on Wednesday.

Copyright © 2019, Los Angeles Times
EDITION: California | U.S. & World