Dow Climbs 16.29 to Close Above 1,800 for First Time in History

Associated Press

The stock market churned ahead today, carrying the Dow Jones industrial average past the 1,800 level to a record high.

The Dow Jones average of 30 industrials climbed 16.29 points to 1,804.24, surpassing the previous closing high of 1,792.74 it reached last Friday.

Advancing issues outnumbered declines by about five to four on the New York Stock Exchange.

Big Board volume totaled 147.95 million shares, compared to 149.99 million in the previous session.

The NYSE's composite index rose 0.56 to 136.13. At the American Stock Exchange, the market-value index was up 1.12 at 267.32.

The Dow Jones industrials made short-lived runs beyond 1,800 Tuesday and Wednesday, falling back both times. But in each case, the retreat didn't go very far before it attracted new buyers.

Analysts said that led many traders to the conclusion that the long advance in stock prices had further to go.

Order Returns

A semblance of order returned to municipal bond trading early today as some buyers looked for bargains following Wednesday's near collapse in the tax-exempt market. But most dealers still were reluctant to do business.

Government and corporate issues gained. Interest rates were mixed.

The municipal market fell apart Wednesday amid concerns that tax reforms being contemplated by the Senate Finance Committee could subject interest earned on all outstanding and new tax-exempt bonds to federal taxes.

"The market is better, but, on the other hand, that's not hard to do because yesterday was chaos," said Ted Palatucci, manager of the national municipal bond group at Merrill Lynch Capital Markets.

Institutional Buying

He and others reported that institutional buyers were attracted to municipal bonds at low prices, a phenomenon that Palatucci referred to as "bottom fishing."

At midday in the municipal market, dollar bonds were up 1 1/2 points in moderate trading and general obligations were up 3/4 point in fairly quiet activity, according to the investment firm of Salomon Bros. Inc.

In the secondary market for Treasury bonds, short-term securities were up between 1/32 point and 1/16 point. Intermediate governments rose between 3/32 point and 17/32 point. The 20-year bond gained 9/16 point and the 30-year issue spurted by 23/32 point, according to Salomon Bros.

In corporate trading, utilities gained 5/8 point in light volume while industrials edged up .

The federal funds rate was 7.1875%, compared with 7.25% late Wednesday.

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