Dow Index Surges 24 in Broad Market Rally : Stock Analysts Cite Wave of Bargain Hunting, Especially in the High-Technology Sector

The stock market put together a broad rally in quiet trading Friday, attracting some support after a selloff earlier in the week.

The Dow Jones index of 30 industrials climbed 24.20 to 1,903.51, reducing its loss for the week to 52.56 points.

The market was in a sharply defined, narrow trading range for most of the day, with advancing issues outnumbering declines by more than 5 to 2 on the New York Stock Exchange.

Mild bouts of bargain hunting prompted the advance, especially in areas such as high technology, which had suffered major losses earlier in the week.

Big Board volume totaled 147.05 million shares, against 158.08 million in the previous session.

Analysts said investors were taking note of recent declines in bond interest rates. Prices of long-term government bonds rose about $5 for each $1,000 in face value in Friday’s trading, putting yields in the 8.65% to 8.7% range.

To a large extent, the drop in rates is presumed to have been fueled by investing institutions opting to put their money in bonds rather than stocks. Nevertheless, a good many analysts argue that a continued drop in rates would eventually work in the stock market’s favor.

E-II Holdings Gains

Lower rates would logically stand to reduce the chances of a recession in the months ahead.

At the same time, they would sooner or later reduce the drawing power of bonds in competition with stocks for investors’ favor.

Johnson & Johnson gained 5 1/8 to 79 7/8 in active trading. On Thursday, a study was released indicating that a company drug for acne treatment also might be effective in reducing skin damage caused by exposure to the sun.

E-II Holdings rose 5/8 to 12 1/2. American Brands, responding to the apparent threat of a takeover move by E-II, announced a tender offer for E-II stock at $13 a share.

American Brands shares added 5/8 to 47 3/8.

Orion Pictures closed up 1 at 14 1/2. A group led by Metromedia announced earlier in the day that it had raised its stake in Orion to 22.9% of the common stock outstanding.

Utility issues, which are often especially sensitive to shifts in interest rate expectations, generally had a good day, pushing the Dow Jones index of 15 utilities up 3.61 to 182.25.

Telephone utilities were notable gainers. Bell South rose 1 1/2 to 38 7/8, Nynex gained 1 1/8 to 66, Southwestern Bell added 1 3/8 to 36 1/2 and U.S. West edged up 1 to 50 7/8.

Apple Declines

Apple Computer, the most active issue in the over-the-counter market, dropped 7/8 to 39. The company said it has been telling some analysts that their earnings estimates for the company in the current fiscal year are too high.

The NYSE’s composite index of all its listed common stocks gained 1.71 to 138.68.

The Wilshire index of 5,000 equities closed at 2,429.871, up 28.315.

Standard & Poor’s index of 400 industrials rose 3.42 to 282.44, and S&P;’s 500-stock composite index was up 3.36 at 246.50.

The NASDAQ composite index for the over-the-counter market picked up 3.34 to 337.59.

At the American Stock Exchange, the market-value index closed at 265.62, up 1.85.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 169.66 million shares.

In foreign trading, stock prices surged on the London Stock Exchange, with the Financial Times 100-share index rising 23.7 points to 1,770.9.

In Tokyo, the Nikkei 225-share index closed up 166.32 to close at 22,876,58.