The stock market recouped some of Thursday’s broad losses as investors returned to the market to stalk bargains Friday.
The Dow Jones index of 30 industrials, down 24.35 on Thursday, rose 9.06 to 2,149.89. That left the index with a net loss for the week of 33.61 points.
Big Board volume totaled 146.30 million shares, against 196.54 million in the previous session, with advancing issues outnumbered declines by about 7 to 5 in nationwide trading of New York Stock Exchange-listed stocks.
Market analysts said a sharp rise by General Motors Corp., which jumped for the second day in a row following its strong third-quarter earnings report, helped buoy the market. GM is a component of the Dow 30. GM, which gained 2 7/8 on Thursday, climbed another 3 3/8 to 83 7/8 on turnover of more than 3.6 million shares Friday.
Takeover stocks also recouped some of Thursday’s losses, which followed news that Federal Reserve Chairman Alan Greenspan was concerned about risks posed by a wave of corporate buyouts and takeovers. The Dow index fell more than 24 points Thursday.
But analysts said the recovery in takeover stocks was far from robust and said the moderate volume may bode ill for the market in coming weeks.
“The speculative whisper stocks didn’t really snap back too much,” said Ed Laux, a trader with Kidder, Peabody & Co. He said that those stocks supported by actual offers managed better recoveries.
Laux also said trading by institutional investors was at its lowest level in two or three weeks. He said that between Greenspan’s remarks and the upcoming presidential election, traders preferred to remain cautious ahead of the weekend.
“If, as I expect, we see a further rally in the week to come, then I want to see volume expand or else I would be concerned,” said Lew Smith, technical analyst at Bear, Stearns & Co. “I wouldn’t think a rally could sustain itself if volume continues to lag the way it did today.” Among big takeover targets, RJR Nabisco gained 3 to 85; Kraft was up 2 at 96 1/2, and Pillsbury rose 5/8 to 59 1/2.
The investment firm of Kohlberg Kravis Roberts & Co., a bidder for RJR Nabisco, said its plan does not call for the sale of large parts of the company and its financing is not conditioned on such sales.
Sears, Roebuck & Co., recently rumored as a takeover or restructuring candidate, gained 3/8 to to 43 3/4 after a drop of 1 1/2 Thursday. American Telephone & Telegraph Co. gained 3/4 to 28 and USX Corp. added 1/2 to 27 7/8.
In foreign trading, the Tokyo stock market shrugged off weaker Wall Street prices to post its fourth-straight winning session Friday, eking out a small gain in heavy trading. After being down for much of the day, the 225-share Nikkei index struggled into the plus column late in the session to end 18.42 points higher at 27,741.34.
On the London Stock Exchange share prices rose in a lackluster session. The Financial Times 100-share index rose 6.3 points to 1,858.4.