Stocks Hit New Highs; Dow Gains 12 to 1,347
Stock prices swept ahead to new highs in active trading Tuesday after the market responded calmly to the latest news on President Reagan’s health.
The Dow Jones average of 30 industrials climbed 12.43 to 1,347.89, topping the record closing high of 1,338.60 that it set last Friday. Several other, broader market measures also rose to new highs.
Volume on the New York Stock Exchange stepped up to 132.50 million shares from 103.92 million Monday.
Just after the market closed Monday, doctors reported that a polyp that they had removed from the President’s colon was cancerous. But they also said they found no evidence that the malignancy had spread.
Financial analysts said investors were heartened by reports of Reagan’s rapid recovery from his surgery.
However, they also observed that the situation raised some uncertainty about prospects for legislative action on measures being pushed by the President to narrow the federal budget deficit and overhaul the tax system.
International Business Machines climbed 3 to 128 1/2. On Monday, IBM reported lower second-quarter earnings, but the company had given advance warning of those circumstances, and analysts said investors generally were relieved that the news wasn’t worse.
As they studied IBM’s quarterly report in detail, some analysts concluded that the company’s outlook for the second half of the year and beyond was improving.
Point-plus gains were common among other computer and technology stocks. Digital Equipment rose 3 7/8 to 99 3/8, Texas Instruments 4 to 99 3/4, Hewlett-Packard 1 1/8 to 36 7/8, Data General 1 3/4 to 38 1/2 and Burroughs 1 7/8 to 59 7/8.
American Telephone & Telegraph led the active list, up at 22 1/2 on volume of more than 3.3 million shares. The stock fell early in the session after some analysts described it as overvalued, but it rallied toward the close as the general market advance gathered speed.
On the downside, Schlumberger slipped 1/8 to 37. The company posted second-quarter profits of 71 cents a share, down from $1.01 in the comparable period a year ago.
In the daily tally on the Big Board, advancing issues outnumbered declines by almost three to one. The exchange’s composite index jumped 1.12 to 113.05.
