Dow Climbs 11.47 to Set 8th Record in 11 Sessions

The stock market jumped ahead to new highs Thursday, reviving its recent rally on the strength of a late outburst of buying.

The Dow Jones average of 30 industrials, down 5.85 on Wednesday, rebounded 11.47 to 1,439.22 to post its eighth record high in the past 11 sessions.

Volume on the New York Stock Exchange stepped up to 124.93 million shares from 109.69 million on Wednesday.

A surge in stock prices just before the close of trading has become a familiar pattern in recent weeks. It happened again Thursday, despite a rise in open-market interest rates and some downbeat news on consumer spending.

The Commerce Department reported a record 3.3% drop in retail sales during October, more than offsetting a 2.1% increase in the previous month.

A big decline had been expected, however, because auto sales have fallen since manufacturers ended the cut-rate financing programs that had touched off a car-buying spree in August and September.

But in financial markets, traders have been bidding up stock prices this month on hopes that a relatively stimulative Federal Reserve credit policy will set the stage for a strong economy in 1986.

Among the auto stocks, Ford Motor rose 2 1/8 to 51 1/8. The company said its directors expanded the company’s program of buying back its stock by authorizing the repurchase of 20 million additional shares.

Chrysler gained 3/4 to 43 and General Motors was up 3/8 at 69 3/8. GM’s Class H stock, created as part of its planned acquisition of Hughes Aircraft, began trading on a “when issued” basis, opening at 41 and later moving up to 45 3/4.

Among other actively traded blue chips, International Business Machines rose 1 5/8 to 136 5/8, Allied-Signal rose 1 to 45 3/4 and American Express rose 1/8 to 48.

Beatrice led the active list and gained 3/4 to 46. The company agreed to a sweetened buy-out offer from the investment firm of Kohlberg Kravis Roberts & Co.

Sanders Associates jumped 2 3/8 to 33 5/8, apparently on speculation that Lockheed might be sizing up the company as a possible acquisition. Lockheed shares dropped 1 3/8 to 47 3/4.

Chromalloy Gains

Chromalloy, subject of some bullish comments by analysts quoted in the Wall Street Journal, added 1 3/8 to 16.

In the daily tally on the Big Board, advancing issues outnumbered declines by more than two to one. The exchange’s composite index climbed 1.03 to 114.82.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 148.10 million shares.

Large blocks of 10,000 or more shares traded on the NYSE totaled 2,372, compared to 2,160 on Wednesday.

Standard & Poor’s index of 400 industrials rose 2.34 to 220.99, and S&P;’s 500-stock composite index was up 1.96 at 199.06.

The Wilshire index of 5,000 equities closed at 2,042.121, up 17.231.

Indexes Gain

The NASDAQ composite index for the over-the-counter market gained 1.36 to 305.21.

At the American Stock Exchange, the market-value index closed at 237.23, up 1.36.

In the bond markets, government and corporate bond prices retreated, giving back some of the gains scored during the recent rally, and interest rates jumped as the U.S. Treasury announced a busy financing agenda.

Yields on 30-year Treasury bonds rose to 10.17% from 10.06% late Wednesday. Over the past month, the bond market advance had pushed yields on long-term Treasury bonds to five-year lows.

In the secondary market for Treasury securities, prices of short-term issues fell between 9/32 point and 11/32 point, intermediate maturities fell from 3/8 point to 7/8 and long-term issues were down 1 1/32 point, according to the investment firm of Salomon Bros. The movement of a point is equivalent to a change of $10 in the price of a bond with a $1,000 face value.

Analysts traced some of the market’s decline to the Treasury’s announcement that it will sell $61 billion in new securities over the next two weeks.

The market had been braced for the Treasury to unleash a heavy load of new debt once Congress expanded the government’s borrowing authority.

Interim legislation raising the federal debt limit was approved and signed into law Thursday.

Industrials Fall

The Merrill Lynch daily Treasury index, which measures price movements on all outstanding Treasury issues with maturities of a year or longer, fell 0.43 to 107.65. The Shearson Lehman daily Treasury bond index, which makes a similar measurement, fell 4.74 to 1,128.09.

In corporate trading, industrials fell 1 point in moderate dealings and utilities fell 1/2 point in light trading.

But among tax-exempt municipal bonds, general obligations rose 1/8 point in moderate activity and revenue bonds were up 1/2 point in heavy trading.

Yields on three-month Treasury bills rose 13 basis points to 7.39%. Six-month bills climbed 10 basis points to 7.41%, while one-year bills were also up 10 basis points at 7.43%. A basis point is one-hundredth of a percentage point.

The federal funds rate--the interest on overnight loans between banks--traded at 8%, up from 7.813% late Wednesday.