Dow Advances 11.39 as Market Turns Upward

The stock market turned upward Friday in a session given over almost entirely to takeover news and speculation.

The Dow Jones average of 30 industrials rose 11.39 to 1,873.59, cutting its loss for the week to 12.94 points. The average had fallen 31.50 points on Thursday.

Volume on the New York Stock Exchange came to 172.06 million shares, against 163.95 million on Thursday.

As the trading day began, investors were confronted with some weaker-than-expected economic news.

The Commerce Department reported that retail sales fell 5% in October, and the Federal Reserve said industrial production was unchanged in the same month.

Analysts had been expecting a decline in the retail sales data because of the expiration of cut-rate financing offers that had stimulated auto sales in September. But there had also been hopes that industrial production would show further gains.

Whatever negative implications the data might have had for growth prospects were offset by a drop in open-market interest rates. The bellwether 30-year Treasury bond rose more than $7.50 per $1,000 in face value, with its yield dipping to 7.52% from 7.59% on Thursday.

For many traders, it seemed, economic and interest-rate developments commanded little attention in a marketplace bubbling with takeover news and rumors.

The news of the involvement of Ivan F. Boesky, a prominent investor, in proceedings arising from an insider trading case didn’t break until after the market closed in New York.

Gillette climbed 10 to 67 3/4. Revlon Group made a $65-a-share offer to acquire the company.

Lockheed jumped 8 to 55 on takeover speculation, although the company has said it is engaged in no talks regarding a possible deal. Among other aerospace stocks, McDonnell Douglas rose 7/8 to 80 1/8, Northrop 7/8 to 44 7/8 and Grumman 1/2 to 26 7/8.

Airborne Freight rose 5 5/8 to 31 1/8. The company drew a $29-a-share acquisition bid from TNT Ltd. of Australia.

Transworld Corp. picked up 1/2 to 40 1/8. The company said its directors adopted a liquidation plan.

Niagara Mohawk Power led the NYSE active list, down 1/8 at 18 5/8. Brokers said much of the trading involved investing institutions aiming to capture the company’s quarterly dividend.

Among the blue-chip industrials, IBM gained 1 1/2 to 121 3/8, International Paper 1 1/2 to 73 and Du Pont 2 to 86 1/2.