Dow Gains 3.51 in 7th-Straight Day of Run-Ups
The stock market advanced broadly Monday, extending its early-1987 winning streak to seven sessions after a pause during the morning.
Energy issues posted some of the day’s best gains as oil prices kept climbing.
The Dow Jones average of 30 industrials rose 3.51 to a record 2,009.42, bringing its gain since New Year’s to 113.47 points.
Volume on the New York Stock Exchange totaled 184.22 million shares, down from 193.03 million on Friday.
Analysts said investors had been impressed by the market’s showing since New Year’s, especially by the breadth of the gains. The economic news, meanwhile, generally has reinforced high spirits in the financial world.
Energy stocks accounted for eight of the 15 most active NYSE-listed issues, including Texaco, up 1 at 39; Mobil, up 2 at 43 1/2; Chevron, up 1 3/8 at 50; Occidental Petroleum, up 1 at 31 1/2, and Phillips Petroleum, up 5/8 at 13.
Among the oil service and drilling stocks, Halliburton rose 2 5/8 to 30 5/8, Schlumberger gained 1 to 36 3/4 and Baker International added 3/8 to 14 3/4.
Tobacco Stocks Rise
Tobacco issues also moved up after the Supreme Court declined to hear an appeal of a ruling in favor of cigarette manufacturers in a product liability case. Philip Morris gained 3/4 to 77 5/8 and RJR Nabisco was up 1 at 56.
Owens-Illinois fell 4 1/8 to 51 1/8, in the process reducing the gain shown by the Dow Jones industrials. The company’s directors rejected a buyout proposal and authorized it to repurchase as many as 20 million shares of its stock.
First Capital Holdings Corp. jumped 2 to 20. The Los Angeles investment advisory and insurance concern plans to buy E. F. Hutton’s life insurance subsidiary. Hutton, which said it is setting aside a $130-million special reserve that will result in a loss for the fourth quarter, dropped 1 to 41 3/4.
Teledyne fell 5 7/8 to 309 3/4. The company reported sharply lower quarterly earnings.
Advancing issues outnumbered declines by more than two to one on the Big Board, with 1,119 up, 525 down and 358 unchanged.
Large blocks of 10,000 or more shares traded on the NYSE totaled 4,102, compared to 4,068 on Friday.
Bond Prices Slump
Bond prices fell Monday, amid traders’ unhappiness with the weakening dollar, higher oil prices and a rise in a key interest rate.
The Treasury’s 30-year bond fell 5/8 point, or $6.25 per $1,000 face value, with its yield rising to 7.33% from 7.28% late Friday.
Investors also were dissatisfied with the federal funds rate, the interest on overnight loans between banks, which rose during the day, Goldinger said. The funds rate closed at 6.125%, up from 5.938% late Friday.
In the secondary market for Treasury bonds, prices of short-term governments fell about 1/16 point, intermediate maturities ranged from 5/32 to 3/8 point lower and long-term issues were down nearly 3/4 point, according to figures provided by Telerate Inc. The movement of a point is equivalent to a change of $10 in the price of a bond with a $1,000 face value.
In corporate bonds, industrials were unchanged in moderate trading and utilities fell 1/8 point in light trading.
