Late Blue Chip Rally Boosts Dow Index 16
The stock market staged a rally Wednesday with a boost from an afternoon round of buying concentrated in blue chip issues.
The Dow Jones average of 30 industrials, which had fallen 13.36 points on Tuesday, rebounded 16.03 to 1,932.93.
Volume on the New York Stock Exchange came to 139.67 million shares, up from Tuesday’s 128.69 million.
Declining interest rates prompted strength in stock-index futures, which in turn encouraged professionals engaged in computer-program trading to sell the futures and buy stocks that are prominent components of the index.
Lear Siegler’s share price fell 1 1/2 to 82 in the wake of an announcement by Wickes Cos. that it was abandoning its $1.7-billion offer for the company.
Wickes shares closed down at 3.62 1/2 in trading on the American Stock Exchange.
Announced Restructuring
United Technologies climbed 1 5/8 to 47. On Tuesday the company announced a restructuring plan that it said would permit it to concentrate on its “strong core businesses.”
Among other actively traded blue chips, International Business Machines rose 1 1/8 to 128, General Motors gained 5/8 to 71,Eastman Kodak added 1 7/8 to 69 and Exxon was up 7/8 at 70 1/2. Exxon said it expected to have a $246 million fourth-quarter gain from the sale of its interest in its headquarters building in New York.
General Cinema gained 3 to 48 1/2 on word that the company plans to expand its retailing via its controlling interest in a series of specialty stores to be spun off by Carter Hawley Hale Stores.
Most other leading retail issues gave ground as a brokerage firm downgraded its rating of several stocks in the industry. J. C. Penney lost 3 1/8 to 77 5/8, K mart 1/2 to 47 3/8 and Sears Roebuck 3/8 to 42.
Advancing issues outnumbered declines by about 9-to-7 in the overall tally on the NYSE. Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 169.06 million shares.
Bond prices rose slightly in quiet trading Wednesday, as some investors speculated that inflation could remain in check because OPEC would fail to produce a lasting agreement to raise oil prices.
The federal funds rate, the interest on overnight loans between banks, closed at 5.813%, down from 5.875% Tuesday.
