Dow Index Climbs 27.58 to Hit 48th Record Close of the Year

Wall Street’s rally steamed ahead Friday, led by the technology issues and fueled by other stocks likely to benefit from the dollar’s persistent strength and falling oil prices.

The Dow Jones average of 30 industrial stocks jumped 27.58 to 2,594.23, its 48th record this year. It surpassed the previous record of 2,572.07 set last Friday.

But bond prices finished narrowly mixed in sluggish activity Thursday, as traders awaited the outcome of congressional deliberations on legislation to raise the nation’s debt limit.

“I believe a lot of people were waiting for the problem in the Persian Gulf to subside; I think they were waiting to buy stock,” said Hank Striefler, a senior vice president at Shearson Lehman Bros. in New York. “As soon as people saw there was no war, nobody shooting at each other, a lot of money came racing back into the market.”

Analysts said much of that money was poured into technology stocks, partly because of reports suggesting that a protracted slump in the semiconductor industry is over.

The technology rally helped companies ranging from IBM to over-the-counter software makers and spilled into other areas as well.

Gainers outnumbered losers by nearly 2 to 1 in composite New York Stock Exchange trading, with 1,034 up, 556 down and 398 unchanged. Big Board volume totaled 191.95 million shares, compared to 192.72 million Wednesday.

Among the most prominent technology-related gainers, IBM rose 4 1/8 to 163 1/8, Digital Equipment climbed 3 7/8 to 169 1/8, Hewlett-Packard added 2 7/8 to 65, Cray Research gained 5 1/8 to 110 and Compaq rose 3 3/8 to 50 3/8.

Oil and metals stocks continued to lose, a reflection of profit taking on the sharp run-ups those sectors enjoyed earlier in the week when the market was afflicted with anxiety about the Middle East. Atlantic Richfield fell 3/4 to 94 3/4; Occidental slipped 1/2 to 37 3/4; Alcoa lost 1 to 59 3/8, and Asarco fell 1 to 30 3/8.

Meanwhile, the Treasury Department’s 30-year bond finished down 1/8 point, or about $1.25 for every $1,000 in face value. The bond’s yield edged up to 8.95% from 8.94% Wednesday.

Prices of corporate bond issues were virtually unchanged while municipal bonds edged higher.

In the secondary market for Treasury bonds, prices of short-term and intermediate governments slipped 1/16 point, but 20-year issues rose 1/32 point.

The federal funds rate, the interest on overnight loans between banks, traded at 6.56%, unchanged from Wednesday.