Wall Street Closes at Another Record as Dow Rises 11 Points

The stock market advanced again to record highs today, but finished well below its mid-session peak after some late profit-taking.

The Dow Jones average of 30 industrials rose 11.02 to 1,821.72, finishing the holiday-shortened week with a 53.16-point gain.

Advancing issues outnumbered declines by more than two to one on the New York Stock Exchange.

Big Board volume totaled 178.10 million shares, against 161.46 million in the previous session. The NYSE’s composite index added 0.99 to 137.69.

Falling interest rates helped keep market activity going at a brisk pace.

In the bond market, prices of long-term government bonds, which move in the opposite direction from interest rates, rose about $20 for every $1,000 in face value. Declining interest rates have been cited as a primary force behind the dramatic rise in stock prices since last fall.

The market also was greeted this morning by some favorable news on the nation’s position in international trade. The Commerce Department reported that the foreign trade deficit totaled $12.5 billion in February, 24% below its record level in January.

Malcolm Baldrige, the secretary of commerce, said he expected further progress toward reducing the trade deficit in the months ahead because of the dollar’s decline in currency markets.

In the credit markets interest rates headed lower and bond prices gained in early trading, extending the rally from the previous session.

Brisk buying by Japanese investors overnight prompted purchases when trading got underway in the United States, analysts said.

The economic background for the bond business is favorable, with inflation dormant and many analysts predicting further declines in interest rates.

Around noontime here, the bellwether 30-year Treasury bond gained $12.50 for each $1,000 in face amount. The yield on the bond moved down to 7.68% from 7.78% late Wednesday.

A Commerce Department report showing the U.S. merchandise trade deficit declined to $12.5 billion in February, 24% below January’s record shortfall, reminded the markets of the positive implications of the collapse in petroleum prices.

The report said the value of imported petroleum products plunged by 28% last month. An average of 5.4 million barrels of oil was purchased daily, down from 6.2 million barrels a day in January, while the price fell to $24.85 per barrel, down $2.29 from the January level. It was the lowest price since November, 1979.

In the secondary market for Treasury securities, yields on three-month Treasury bills tumbled six basis point to 6.33%. A basis point is one-hundredth of a percentage point. Six-month bills and one-year bills each slid six basis points to 6.33% and 6.39%, respectively.

Prices of short-term governments rose by 1/16 point and intermediate maturities rose by 1/8 point to 1/2 point. The 20-year bond rose 1 points and the 30-year issue jumped 1 3/8 points, according to the investment firm 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.

At midday, the Merrill Lynch daily Treasury index, which measures price movements on all outstanding Treasury issues with maturities of a year or longer, rose 0.53 from Wednesday’s close to 118.03. The Shearson Lehman daily Treasury bond index, which makes a similar measurement, rose 4.11 to 1,235.23.

In corporate trading, industrials rose 3/4 point and utilities moved up 5/8 point. Trading was heavy.

Among tax-exempt municipal bonds, revenue bonds jumped 1 1/2 points in average trading volume and general obligations gained 1/2 point in busy dealings.