Stocks Rebound From Early Jitters; Dow Rises 17

The stock market advanced broadly Friday, as traders overcame some early hesitation in the face of Wall Street’s growing insider trading scandal.

The Dow Jones average of 30 industrials rose 17.57 to 2,183.35, finishing down 3.52 for the week.

The Dow index was off nearly 11 points after the first hour of trading, but the market then bounced back.

Technology and drug stocks were prominent among the advancing issues.

Analysts said the news that four Wall Street professionals had been charged with trading illegally on confidential corporate information may have unsettled the market early in the session.

But they said the market bounced back as traders considered the evidence in new government economic reports that suggested that the economy may be picking up.

Big Board volume amounted to 184.38 million shares, down from 200.38 million shares in the previous session.

The government, meanwhile, reported that producer prices rose 0.6% in January, for their biggest increase since November, 1985, and that industrial production rose 0.4% in January, the fourth consecutive monthly increase.

Texaco, among the most actively traded issues, fell 3 to 35 1/2. Pennzoil rose 10 1/8 to 81 1/8.

Late Thursday, an appeals court in Texas upheld $9.1 billion of the original $11.1-billion judgment in favor of Pennzoil and against Texaco in a case involving the takeover of Getty Oil.

Bond prices fell in slow trading.

The Treasury’s key 30-year issue was off 9/32 point, or more than $2.50 per $1,000 face amount. Its yield rose to 7.57% from 7.55% late Thursday. Corporate and municipal issues were unchanged to slightly higher.