Dow Climbs 9.56 in Mixed Market : Analysts Say Interest-Rate Prospects Still Worry Traders

Takeover news and speculation provided most of the excitement as the stock market chalked up spotty gains Monday.

The Dow Jones average of 30 industrials, which declined 4.78 points last week, rose 9.56 to close at 1,841.82.

Volume on the New York Stock Exchange came to 133.24 million shares, down from 137.48 million Friday.

Later this week, the Treasury Department is due to announce its quarterly financing plans. Analysts said traders were wary about interest-rate prospects, pending word on the size of the refunding and signs of how it might be received.

Goodyear Rises Further

Though stock prices have managed to post some gains in recent weeks, the rally has been met with considerable skepticism on Wall Street.

Brokers say investors’ confidence apparently has yet to recover fully from the selloff that hit the market early last month.

Goodyear Tire & Rubber climbed 4 1/8 to 48 and led the NYSE active list on turnover of more than 12.7 million shares. The company, which has been the subject of takeover speculation, said it had retained investment bankers to advise it on a possible restructuring plan.

Monday’s activity followed last week’s turnover of 16.2 million shares.

Goodyear shares accounted for about half of the advance in the Dow Jones industrial average.

Hazeltine jumped 9 3/8 to 29 5/8 for the day’s biggest percentage gain among NYSE issues. The company, which produces military electronic systems and equipment, agreed to be acquired by Emerson Electric for $30 a share.

GTE rose 1 7/8 to 60 3/8 on continuing speculation about a possible restructuring or other transaction. GTE said Friday that it knew of no reason for the activity in its stock.

Among other blue-chip issues, American Telephone & Telegraph was up 1/2 at 24 1/8, International Business Machines gained 3/4 to 122 1/8, Ford Motor added 3/4 to 58 and Procter & Gamble rose 1/2 to 73 5/8. On Friday, Procter & Gamble reported higher quarterly earnings.

Gainers Edge Losers

Airborne Freight, up 2 at 22 5/8, and Merrill Lynch, up 7/8 at 40, also benefited from upbeat quarterly earnings reports.

In the overall tally on the Big Board, advancing issues slightly outnumbered declines, with 783 up, 736 down and 456 unchanged.

Large blocks of 10,000 or more shares traded on the NYSE totaled 2,474, compared to 2,738 on Friday.

In the credit markets, bond prices moved higher and short-term interest rates fell as traders saw hope for continued low levels of inflation.

In the secondary market for Treasury bonds, prices of short-term governments rose 3/32 point from Friday’s late level, intermediate maturities were up between 6/32 point and 14/32 point and long-term issues were up 5/8 point, according to the investment firm of 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.

General Obligations Unchanged

In corporate trading, Salomon Bros. said industrials were unchanged in light trading while utilities rose 5/8 point in active trading.

Among tax-exempt municipal bonds, general obligations were unchanged in light dealings while revenue bonds were up 5/8 point in moderate activity.

Yields on three-month Treasury bills were off 8 basis points at 5.19%. Six-month bills fell 3 basis points to 5.32% and one-year bills were off 3 basis points at 5.45%. A basis point is one-hundredth of a percentage point.

Yields on 30-year Treasury bonds fell to 7.72% from 7.77% late Friday.