Dow Climbs 8.26 to Another Record Close : Index Bounces Back After Early Session Dip
The stock market pushed ahead Thursday, establishing the second new high this week for the Dow Jones industrial average. The index, down more than 8 points in the early going, closed with an 8.26 gain at 1,753.71. That surpassed the previous closing peak of 1,746.05 reached Tuesday.
Volume on the New York Stock Exchange came to 171.48 million shares, against Wednesday’s 210.25 million, which was the second-largest total ever.
K mart gained 1 1/2 to 42 1/8 in active trading. The company reported higher earnings from continuing operations for its latest quarter.
Tobacco Stocks Rise
Tobacco stocks rose sharply in the wake of an appeals court ruling that cigarette makers need not make internal corporate strategy documents public in connection with product-liability cases. Philip Morris climbed 4 7/8 to 113 5/8 and R. J. Reynolds Industries rose 2 1/2 to 41 1/2. Philip Morris is a component of the Dow Jones industrial average.
Other issues contributing to the Dow’s advance included International Business Machines, up 1 1/2 at 150 1/2; Procter & Gamble, up 2 1/2 at 73, and General Motors, up 3/4 at 79 3/4.
In the bond market, some lively buying late in the day helped government bond prices to erase earlier losses and wind up the session with moderate gains. Corporate and municipal issues made minor movements.
The Treasury’s 30-year bond, down more than a point at midday, recovered to rise about 1/2 point, or $5 for each $1,000 in face amount. The yield on the bond finished at 7.94%, the same as late Wednesday’s level.
Yields tumbled at the Treasury’s monthly 52-week bill auction. It sold $9 billion in the bills at an average yield of 6.61%, down from 7.19% at the last auction on Feb. 13 and the lowest since 6.55% on Jan. 4, 1978. The sale attracted $22.5 billion in bids.
Secondary Market
In the secondary market for Treasury securities, prices of short-term governments fell from 1/16 point to 7/32 point and intermediate maturities were off 13/32 point to 31/32 point. The 20-year bond lost 1 points and the 30-year issue dropped back 1 13/32 points.
In the market for corporate securities, industrials and utilities finished unchanged in light trading.
Among tax-exempt municipal bonds, revenue bonds slid point in average trading volume and general obligations fell 1/2 point point in light activity.
Yields on three-month Treasury bills fell three basis points to 6.59%. Six-month bills were up three basis points to 6.63%, and one-year bills edged up two basis points to 6.65%.
The federal funds rate traded at 7.438%, compared to 7.75% late Wednesday.
