Transportations Pace Market; Dow Up 5.83

Stock prices rose over a wide front in moderate trading Wednesday to extend the previous day’s advance.

Autos, airlines, retail and telephone issues were among the gainers.

The lead feature of the session was a 16.50-point jump to 696.04 in the Dow Jones average of 20 transportation stocks. Most of the gain came from one of the average’s components, Transway International, which soared 9 3/8 to 43 after receiving a $40-a-share takeover bid from Nortek. Nortek rose 7/8 to 16 1/2.

The Dow Jones average of 30 industrials rose 5.83 to 1,329.53 after climbing 11.20 points Tuesday for its best gain in six weeks.

It was the biggest daily advance in the transportation average since Oct. 18, 1984, when it climbed 17.40 points, according to market analyst William Le Fevre of Purcell, Graham & Co.

Higher Volume

Overall gainers outpaced losers by nearly two to one on the New York Stock Exchange, whose composite index rose 0.57 to 109.49.

Big Board volume totaled 94.88 million shares, against 91.23 million on Tuesday.

Some brokers said the market’s upturn, which followed several sessions of lackluster activity, could trigger additional buying interest in the next few days.

But they said many of the gains have reflected technical factors and have been limited primarily to the market’s blue chips and other large-capitalization issues. Any sustained upward move will have to include the participation of the broader market, the traders said.

Analysts also noted that, while trading volume has picked up from the extremely slow pace earlier this week, it remains relatively light and indicates that much of Wall Street continues to hold a cautious view toward stocks.

However, Le Fevre said that, while the blue chips continue to receive much of Wall Street’s interest, “we also began to see it in some of the secondary issues, which we didn’t see yesterday.”

Major corporate developments also dominated Wednesday’s session.

American Telephone & Telegraph rose 1/2 to 21 7/8 after announcing plans to eliminate 24,000 positions at its information systems group.

Robins Stock Falls

A. H. Robins plunged 2 3/4 to 8, or nearly 26%, after the company filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Robins said it took the action even though its “businesses remain sound” because of the flood of lawsuits over its Dalkon Shield intrauterine device.

In the transportation sector, Norfolk Southern rose 1 3/4 to 69, NWA moved up 1 3/8 to 53 7/8 and UAL gained 1 1/8 to 57 1/2.

In the credit markets, bond prices finished mostly higher and short-term interest rates edged lower.

Meanwhile, the Treasury auctioned $9.26 billion in two-year notes at an average yield of 8.89%.

The new issues were sold at the lowest yields since 8.51% at a similar auction June 19.