Dow Edges Ahead 1.49 in a Cautious Market

The stock market eked out a small gain Thursday as trading continued to slow from its recent very active pace.

The Dow Jones average of 30 industrials, which had fallen 10.67 points in the past two sessions, edged up 1.49 to 1,543.92.

Volume on the New York Stock Exchange dropped off to 130.23 million shares from 137.89 million on Wednesday. Though that total was still large by historical standards, it was the lightest in nearly two weeks.

Since the market’s sharp rise to record highs last week and Monday, analysts said, buyers’ enthusiasm has cooled a bit. One reason for that, they said, was the approach of the expiration date for some options and futures on stock indexes today. Because many professional traders conduct complicated maneuvers involving the options and futures and individual stocks, the market can be volatile around such expiration dates.

As a result, brokers said, many investors were taking a cautious approach at the moment.

Interest Rates Mixed

Wall Streeters also noted that interest rates rose in Wednesday’s activity. Falling rates have been cited as a primary driving force behind the stock market’s recent gains. Rates showed some spotty declines Thursday in the bond and short-term money markets.

Federal National Mortgage led the active list and fell 1 to 26 3/4 on volume of more than 2.2 million shares. The company said its fourth-quarter earnings will be less than the $22.7-million profit reported for the third quarter.

Warner-Lambert climbed 3 1/8 to 49. After the close, the company said it hadn’t been approached about a possible takeover.

R. H. Macy was off at 63 3/8. Top executives of the company said they submitted a $68-a-share buy-out plan to the board of directors rather than the $70-a-share deal proposed earlier.

In the blue chip sector, International Business Machines rose 7/8 to 153 3/4, but McDonald’s dropped 2 to 78 and General Motors lost 1/8 to 75 1/8.

Advances and declines ran about even in the daily tally on the Big Board. The exchange’s composite index gained 0.07 to 120.75.

The Wilshire index of 5,000 equities closed at 2,150.052, up 1.251.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 156.05 million shares.

Standard & Poor’s index of 400 industrials rose 0.49 to 233.28, and S&P;’s 500-stock composite index was up 0.21 at 20.02.