Dow Gains 15.32; Hopes on Interest Rates Lift Market

The stock market pushed ahead for the second straight session Wednesday, aided by hopes for further declines in interest rates.

Airline stocks posted notable gains in a fairly active session.

The Dow Jones average of 30 industrials, up 12.38 points on Tuesday, climbed another 15.32 to 1,782.90.

Volume on the New York Stock Exchange stepped up to 143.55 million shares from 124.88 million the day before.

Airline stocks responded to word of fare increases being posted by major carriers, which fanned expectations that the fierce price competition in the industry over the past several years might be easing.

AMR gained 2 1/8 to 58 7/8, UAL 2 to 59, Delta 1 1/2 to 45 3/8 and Trans World Airlines 1/2 to 26 1/8.

Texas Air, traded on the American Stock Exchange, rose 3/4 to 35. The Justice Department said it wouldn’t oppose the company’s plans to acquire People Express and Frontier Airlines, and the Transportation Department approved its merger with Eastern Airlines.

Eastern shares rose 1/8 to 9 1/8.

USX Most Active

USX led the active list among Big Board issues, up 1 at 24 3/4 on turnover of more than 11 million shares.

In recent sessions, takeover speculation focusing on the stock had been waning, but rumors revived Wednesday that financier Carl C. Icahn was building up a position in the stock.

Niagara Mohawk Power fell 2 7/8 to 17 1/2 after a Wall Street Journal article asserted that the company might have to reduce its dividend. The company said it had no plans to do so.

Some prominent computer and technology issues were laggards. International Business Machines dropped 1 1/2 to 133 and Texas Instruments dipped 3/4 to 109. Digital Equipment was unchanged at 89 7/8.

In the credit markets, government bonds wound up with only scattered price gains after a rally lost momentum when dealers decided to collect profits.

Short-term interest rates were unchanged to slightly higher amid uncertainty about the economy’s health. Corporate and municipal securities finished mixed.

In corporate trading, industrials moved ahead by 3/8 point in brisk dealings while utilities held steady in average volume.