Dow Rises 0.83 as Good News Lures Investors

The stock market edged forward Wednesday, resting for the second consecutive day near the post-crash peak scaled in its February rally, after a broad early advance faded.

The Dow Jones index of 30 industrials finished with a 0.83 rise at 2,071.29.

Advancing issues outnumbered declines by about 5 to 3 on the New York Stock Exchange.

Big Board volume totaled 199.63 million shares, against 199.99 million in the previous session.

Investors Returning

Values were pushed higher by corporate takeovers and an upbeat view of the economy that has emerged in recent weeks.

“Numerous gurus have been trying to call the top of the market but every time they begin to, the market jumps past their ceiling,” said Lewis Smith of Bear, Stearns & Co.

Investors were generous with their cash commitments to secondary stocks, which have been hit by a takeover wave lately. But they tended to shy away from blue chips, which had risen sharply in February.

Analysts said the market was still benefiting from spreading confidence that a recession can be avoided despite the market’s crash last fall. Alan S. Greenspan, chairman of the Federal Reserve Board, asserted that recent declines in the index of leading economic indicators do not portend an impending recession.

Brokers also noted that enthusiasm for stocks has been buoyed by a brisk pace of takeover activity.

But with all that, they said, many investors still seemed leery of chasing after an advance that has carried the market to its highest levels since the crash.

J. P. Stevens rose 1 7/8 to 56 3/8. West Point-Pepperell made a bid of $56 a share for the company Tuesday, in competition with a management-led group’s offer.

Geico jumped 17 to 121. The company said it will hold a so-called Dutch auction tender offer for 1 million of its shares, to be purchased at a price of between $115 and $125 apiece.

Japanese issues moved up following a strong day in the Tokyo market. Kubota Ltd. jumped 7 to 99 1/2, Matsushita advanced 4 5/8 to 187 1/8 and Honda Motor gained 3 to 122.

Share prices closed sharply higher on the London and Tokyo exchanges Wednesday as investors took heart from the strength in the dollar.

In London, the Financial Times’ 100-share index closed up 26.8 at 1,808.7.

In Japan, the Nikkei 225-share index rose 246.92 to 25,682.82, on top of Tuesday’s 193.09 gain.