Stocks End Mixed as Bond Rally Falters; Dow Up 3.85

NEW YORK — Stock prices showed no clear trend Friday in what analysts described as a desultory session.

Computer and technology issues were generally strong for the second straight day. But brokers said the market couldn’t get very far after a rally in bonds faltered.

The Dow Jones average of 30 industrials rose 3.85 to 1,835.57, trimming its loss for the week to 4.83 points. Some other, broader measures recorded small losses.

Volume on the New York Stock Exchange dropped to 142.31 million shares from 146.56 million Thursday.

President ‘Absolutely Fine’

A late-morning round of selling apparently was prompted by rumors, quickly denied, that President Reagan was ailing. The White House said the President’s health was “absolutely fine.”

Before that episode, the market had been moving higher on a drop in interest rates and oil prices. But, by early afternoon, oil prices had turned higher and the bond market was giving up most of its gains.

Late in the day, open-market interest rates showed no pronounced changes from their closing levels Thursday.

Even as interest rates were rising earlier in the week, analysts noted, the stock market held its ground after a brief sell-off early Tuesday and Wednesday. That led to talk that stock traders might be shifting their attention from interest rate fluctuations to hopes that economic growth and corporate profits might improve in the months ahead.

Among the computer and technology issues, International Business Machines rose 1 7/8 to 159 1/2, National Semiconductor 1/2 to 15, Minnesota Mining & Manufacturing 2 1/8 to 104, Texas Instruments 1 1/2 to 146 1/2 and Burroughs 7/8 to 62.

Ford Motor, which reported lower first-quarter earnings Thursday, dropped 1 to 80 3/4.

Black & Decker lost 1 1/8 to 22 7/8. Some analysts expressed doubts about the plausibility of recent takeover rumors involving the company.

Japanese Companies Gain

American depositary receipts of several leading Japanese stocks rose sharply, apparently bolstered by the recent strength of the yen against the dollar. Matsushita Electrical climbed 5 7/8 to 97 3/4, Honda Motor 3 1/8 to 71 7/8 and Hitachi 2 3/4 to 54 5/8.

In the daily tally on the Big Board, about eight issues declined in price for every seven that gained ground.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 166.65 million shares.

Standard & Poor’s index of 400 industrials rose 0.54 to 269.97, and S&P;’s 500-stock composite index was up 0.27 at 242.29.

The bond market steadied after a three-day setback, but analysts were uncertain whether prices are poised to move higher.

Reports of heavy Japanese buying and an end to Norway’s 20-day-old oil rig strike helped bond prices regain some of their losses.

The Treasury’s 30-year bond rose about 5/8 point, trimming the loss for the week to about 6 1/2 points, or $65 for each $1,000 in face amount. Its yield moved to 7.57% from 7.63% late Thursday.

In the secondary market for Treasury bonds, prices of short-term governments were unchanged to up 1/32 point and intermediate maturities rose 1/8 point. The 20-year bond gained 1/2 point.

The Merrill Lynch daily Treasury index, which measures price movements on all outstanding Treasury issues with maturities of a year or longer, closed at 117.92, up 0.10 from late Thursday.

The Shearson Lehman daily Treasury bond index, which makes a similar measurement, rose 3.36 to 1,230.98.

In corporate trading, industrials and utilities held at late Thursday’s levels in quiet activity.

Among tax-exempt municipal bonds, general obligations were unchanged in light trading while revenue bonds slid point in average trading volume.

Yields on three-month Treasury bills rose three basis points to 6.15%. Six-month bills fell two basis points to 6.20%. One-year bills were unchanged at 6.25%.

The federal funds rate traded at 6.75%, compared to 6.875% late Thursday.