Stocks Rally in Late Trading; Dow Gains 3.22 : Market Rebounds After Bond Prices Steady
The stock market edged upward Friday, rallying near the close of a drifting session.
Retailing stocks and a smattering of computer issues were among the beneficiaries of the late upswing.
The Dow Jones average of 30 industrials rose 3.22 to 1,789.43, finishing the week with a net gain of 14.75 points.
Volume on the New York Stock Exchange came to 137.40 million shares, against 136.03 million on Thursday.
Early in the session, stock prices fell as rising interest rates in the credit markets pushed prices of long-term government bonds down as much as $10 for every $1,000 in face value.
But the bond market steadied at that level, and stocks rebounded in the last hour of trading.
Consumer Finance Stocks Off
Analysts said investors were proceeding cautiously as they studied the prospective impact on the economy and the markets of the new tax-revision plan approved this week by the Senate Finance Committee.
Consumer finance stocks lost some ground on the presumed possibility that borrowing by individuals might be crimped by the provision in the bill that would limit tax deductions for interest payments. Beneficial Corp. dropped 1/2 to 47 and Household International rose 7/8 to 41 3/8.
On the other hand, there was talk that retailers would benefit from lower tax rates both for themselves and their customers. J. C. Penney gained 1 1/8 to 75 1/2, Associated Dry Goods rose 1/2 to 45, Federated Department Stores rose 1 to 78 1/8 and Sears, Roebuck rose 3/8 to 45 7/8.
Among computer issues, International Business Machines added 3/4 to 149 3/4, Digital Equipment 5 to 177 3/8 and Data General 1 to 40 3/4.
Viacom International was actively traded. It closed up 1 3/8 at 72.
Saga Corp. rose 1 to 37 5/8.
Oak Industries ranked among the volume leaders, rising to 1 7/8. Activity in the stock included a block of almost 3.1 million shares that crossed the tape at 1 3/4.
The bond market wound up the week with minor changes as dealers dealt with a load of new government securities and awaited clues to the economy’s health.
