Late Blue-Chip Rally Pushes Dow Up 10.69

The stock market posted modest gains Friday as blue chips spurted at the close to end a day of generally quiet trading and top off a weeklong advance.

The Dow Jones average of 30 industrials, little changed for most of the session, rose 10.69 to 1,855.60, bringing its gain for the week to 72.98 points. It was the best week for the widely watched market index since a 92.91-point gain in the week ended March 14.

Advances outnumbered declines by about eight to seven among New York Stock Exchange issues. As in earlier sessions this week, most broad market measures showed gains, including interest rate and economically sensitive sectors such as utilities and transportation issues.

Shortly before the close, stocks rose sharply in heavy trading in volatility attributed to the expiration of August options and a major blue-chip index futures contract.

Niagara Mohawk Power was the most active issue in early NYSE trading, up 1/8 at 24 as 4.2 million shares changed hands. The stock begins trading ex-dividend on Monday.

Honeywell’s stock was up nearly $5 a share in fairly active trading as investors reacted to information that Sperry had been willing to pay $105 a share for Honeywell earlier this year when Sperry was trying avoid an acquisition by Burroughs. Details of the Honeywell-Sperry talks were disclosed in a proxy statement filed by Burroughs regarding the merger. Honeywell ended the talks, and, on May 27, Sperry agreed to Burroughs’ bid.

Analysts said Sperry’s willingness to pay such a high premium prompted investors to believe that another company might be interested in acquiring Honeywell. The stock closed at 73, up 4 7/8.

CBS was up 2 1/2 to 145 1/2.

Revco D. S. rose 1 1/8 to 36 3/4 on trading of 2.6 million shares. The company announced that its board had accepted a $38.50-a-share acquisition bid from Anac Holding Co.

Oil and energy issues were higher in active trading on recommendations from two major Wall Street investment firms and what analysts said was a spreading belief that oil prices finally had bottomed out.

Mobil rose 1 to 35, Atlantic Richfield 2 3/8 to 56 7/8, Chevron 1 3/4 to 43, Exxon 1 1/8 to 65, Amerada Hess 1/2 to 20 1/8 and Panhandle Eastern 3/4 to 42 3/4.

ICN Pharmaceuticals of Costa Mesa rose 6 1/2 to 30 3/4 in active trading, gaining 11 5/8 on the week. ICN preferred shares soared 12 to 62, up 23 on the week. A major investment firm recommended the shares earlier in the week.

Western Airlines rose 1 to 11 as about 2.2 million shares changed hands, trading on rumors that the company may be a takeover target. Western officials would not comment on the rumors.

Among other active issues, USX was up 2 to 18, IBM fell 1 1/8 to 133 1/8 and AT&T; fell to 23.

Big Board volume totaled 123.49 million shares, against 123.77 million on Thursday.

The credit markets ended a lackluster session with prices unchanged.

In the secondary market for Treasury bonds, prices of short-term, intermediate and long-term issues were unchanged.