Volatile Market Closes Mixed; Dow Up 10.55

The stock market finished mixed Monday in a volatile session that began with a broad decline and ended with a rally led by blue chips.

Analysts said computer program traders played a big role in both the early drop and the subsequent rebound, with some options and futures expiring at the end of the week.

The Dow Jones average of 30 industrials, down about 15 points at midday, closed with a 10.55 gain at 1,922.81. Volume on the New York Stock Exchange stepped up to 148.22 million shares from 126.61 million Friday.

The market got off to a weak start, attributed by analysts to a rise in interest rates in the credit markets.

Analysts said upward pressure on interest rates stemmed in part from early reports that the Organization of Petroleum Exporting Countries was making some progress toward its goal of shoring up world oil prices.

But bonds perked up a bit as the afternoon progressed, and some prominent stocks rallied.

On Monday, Texas Commerce Bancshares rose 3/4 to 27 and Chemical New York fell 7/8 to 43 1/2, both in active trading. The two bank holding companies agreed to merge.

Beneficiaries of the late strength in blue chips included International Business Machines, up 1 1/8 at 127 5/8; Procter & Gamble, up 2 at 79 3/8; General Electric, up 1 at 85 3/8, and American Express, which gained 1 3/8 to 59 3/8 and led the active list on turnover of more than 2.6 million shares.

Beneficial Corp. tumbled 6 to 59 following word that it had called off a special shareholders’ meeting that was to consider a liquidation plan.