Dow Climbs 10, Barreling Past the 2,200 Level : Big Board Volume Tops 256 Million Shares for Second-Busiest Day Ever

Wall Street’s bull market passed another milestone Thursday, as the Dow Jones industrial average closed above 2,200 for the first time.

The Dow Jones average of 30 blue chips rose 10.26 to 2,201.49, four weeks after it broke 2,000.

New York Stock Exchange volume totaled 256.66 million shares, for the second-largest total ever, surpassed only by the 302.39 million that changed hands on Jan. 23.

Estimated dollar value of trading on the NYSE totaled $10.3 billion.

In the bond market, prices of government issues advanced as much as $12.50 for every $1,000 in face value as the market appeared to respond well to the completion of the Treasury’s $29-billion auction of new securities without the upward pressure on rates that some observers had expected.

The Dow jumped more than 16 points in the first hour and half of the session, apparently propelled by buyers who had become frustrated waiting for a pullback to buy stocks. Then, the average retreated to readings as low as 8 points down before coming on strong again at the close.

Since the start of 1987, the Dow has climbed 306.54 points. Brokers say that naturally tends to encourage some traders to cash in their profits, but buyers still remained the dominant force.

Point-plus gainers among the blue chips included International Business Machines, up 2 7/8 at 136 7/8; General Motors, up 1 5/8 at 80, and Goodyear Tire, up 1 3/4 at 49 7/8. GM’s rise came despite sharply lower earnings--it reported fourth-quarter results of 97 cents a share, down from $3.85 in the comparable period a year earlier.

A. H. Robins jumped 5 to 24 1/2 on top of a 6 1/2-point gain Wednesday, when American Home Products confirmed that it offered to buy the company and assume its liabilities for the Dalkon Shield contraceptive device.

Church’s Fried Chicken added 2 to 13 3/4. The company said Sonic Industries Inc. had approached it about a possible takeover.

The completion of the Treasury auction without any adverse effects on interest rates helped spur buying of bank and savings-and-loan issues. Chase Manhattan rose 1 to 39 1/2; Chemical New York rose 1 5/8 to 48 7/8; Manufacturers Hanover rose 1 to 47 1/2; Great Western Financial rose 2 to 48 1/2, and H. F. Ahmanson rose 1 1/8 to 23 5/8.

Advancing issues outnumbered declines by about nine to five on the NYSE.

The Treasury sold $9.3 billion in new 30-year bonds Thursday at an average yield of 7.49%, completing this week’s three-part securities auction.

It was the lowest yield on a new issue of 30-year bonds since last May and was down from 7.54% at the last 30-year bond auction on Nov. 6.

In secondary trading, the prices of 30-year Treasury issues already outstanding climbed about 1 1/8, or $11.25 for every $1,000 face amount, and their yield dipped to 7.42% from 7.51% Wednesday.

In the secondary market for Treasury securities, short-term governments rose 1/8, intermediate maturities went up 3/8 to 5/8, and 20-year issues were up about 1, according to the Salomon Bros.

Yields on three-month Treasury bills fell 4 basis points to 5.57%. Six-month bills were down 2 basis points at 5.58% and one-year bills were off 7 basis points to 5.53%. A basis point is one-hundredth of a percentage point.