Stock Market Resumes Rally; Dow Surges 25 to Close at New Record

A renewed buying spree sent stock prices sharply higher today.

The Dow Jones average of 30 industrials climbed 25.34 to record 1,484.40 at the close, surpassing the previous closing peak of 1,475.69 reached Nov. 27.

Advancing issues on the New York Stock Exchange heavily outnumbered declining ones by about a four to one margin.

Big Board volume totaled 153.16 million shares, against 109.69 million in the previous session.

The NYSE’s composite index rose 1.82 to 117.70.

Market-Value Index Up

At the American Stock Exchange, the market-value index was up 2.38 to 244.13.

Stocks that had not participated in the rally over the past few months received attention.

Buyers who had been keeping their cash on the sidelines, waiting to see how the market would perform, have joined the rally.

“The fear of missing the market’s rally has brought in fresh cash,” said Ralph Acampora, with Kidder Peabody & Co. in New York.

The perception that modest economic activity will be accompanied by further declines in interest rates has lifted investors’ spirits.

Lower interest rates could set the stage for improvements in corporate profits next year, analysts say. Additiwnally, the falling dollar in world currency markets has raised hopes for profit gains at multinational companies and industries that have been facing stiff foreign competition.

In the bond market, government and corporate bond prices declined in early trading while municipal issues rose. Trading was light and interest rates made only minor movements.

Attention in the credit markets has been directed to Capitol Hill where legislation to reduce the federal budget deficit is pending before Congress.

Hopes that the Federal Reserve Board will loosen credit conditions have also been a persistent factor in the markets.

In fresh economic information, the Commerce Department said factory orders fell 1.1% in October. It marked the third decline in the last four months and the biggest drop since July.

Factory orders had fallen 0.7% in September and 1.2% in July.

In the secondary market for Treasury securities, prices of short-term governments were unchanged to down 3/32 point, intermediate maturities fell between 1/16 point and 1/4 point and long-term issues were off 1/4 point, according to the investment firm of Salomon Bros.

Revenue Bonds Rose

The movement of a point is equivalent to a change of $10 in the price of a bond with a $1,000 face value.

In corporate trading, industrials were down 1/4 point and utilities were down 1/8 point in light dealings.

Among tax-exempt municipal bonds, revenue bonds went up 1/8 point in moderate trading while general obligations rose 1/8 point in quiet activity.

Yields on three-month Treasury bills edged up one basis point to 7.22% in the early going. A basis point is one-hundredth of a percentage point. Six-month bills rose one basis point to 7.29%