Dow Index Climbs 11.73 as Blue Chips Lead Weak Rally

Stock prices edged upward today in a sluggish advance led by blue chips.

The Dow Jones index of 30 industrials rose 11.73 to 2,077.70.

Advancing issues slightly outnumbered declines on the New York Stock Exchange, with 713 up, 700 down and 533 unchanged.

Big Board volume totaled 127 million shares, against 120.43 million in the previous session. The NYSE’s composite index gained 0.45 to 150.55.

Before the trading day began, the Labor Department reported that the consumer price index rose 0.4% in October. The figure came in a bit above advance estimates on Wall Street.

Still, analysts said traders were showing a little interest in big-name stocks, apparently believing that those issues were due for a rebound after the market’s broad decline earlier this month.

Brokers said there also might be some buying by people hoping for quick trading profits.

Considerable attention has been devoted to the market’s historical tendency to post at least a small gain over the two sessions before and after Thanksgiving.

Whether this is simply coincidence or not, Newton Zinder at Shearson Lehman Hutton Inc. noted that stocks have had a net gain over those two sessions in 33 of the past 36 years.

Bond prices headed sharply lower in early trading today due to a weaker dollar and renewed inflation fears.

The Treasury’s bellwether 30-year issue was down about 1/2 point, or $5 per $1,000 face amount, by midday. Its yield, which moves inversely to its price and is often a key interest rate indicator, jumped to 9.14% from 9.10% late Monday.

Corporate bonds also declined.

“It’s a very negative atmosphere,” said William V. Sullivan, director of money market research for Dean Witter Reynolds Inc.

Sullivan said several factors contributed to the market’s weakness today, including the dollar’s decline in foreign exchange, the subsequent strength in in the metals market, sharply higher oil prices and a negative government report on inflation.

The federal funds rate, the interest on overnight loans between banks, was quoted by midday at 8 7/16%, up from 8 5/16% late Monday.