Stocks Advance in Light Session; Dow Up 14.58 : Bargain Hunting Cited for Pre-Holiday Rally

The stock market staged a moderate advance Wednesday for its best single-day showing in nearly three weeks.

The Dow Jones index of 30 industrials climbed 14.58 to 2,092.28 in quiet pre-Thanksgiving Day trading. Advancing issues outnumbered declines by nearly 9 to 5 in nationwide trading of New York Stock Exchange-listed stocks, with 893 up, 514 down and 519 unchanged.

Volume on the floor of the Big Board came to 112.01 million shares, against 127 million Tuesday and the smallest total since a 108.72-million-share day Aug. 30.

Nationwide, consolidated volume in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 134.95 million shares.

“There was a good combination today. There were no problems from the dollar or the bond market, and there was reasonably good leadership from groups like transportation,” said market analyst Hugh Johnson of First Albany Corp.

Few Stocks Targeted

Traders cited pre-Thanksgiving rallies in prior years as a reason for the late buying. According to the Stock Trader’s Almanac, the days before and after Thanksgiving combined have gained 9 Dow points on average in the past 21 years.

The market will be closed today for the holiday.

Analysts said the market benefited from bargain hunting by traders after the sharp decline in stock prices earlier in the month.

But they also expressed concern that buy orders in the past few days have been concentrated in a few big-name issues, while the broad market has been flat at best.

In the economic news, the Commerce Department reported that new factory orders for durable goods increased 2.4% in October. The gain had little visible effect on stocks.

Airline stocks were a notable hot spot, benefiting in part from the recent trend toward higher fares. UAL jumped 51 1/4 to 105 1/2; AMR added 2 3/8 to 50 1/4; Delta Air Lines rose 3/4 to 47 7/8, and NWA climbed 1 3/8 to 55 1/8.

Energy issues were mixed as traders monitored efforts of the Organization of Petroleum Exporting Countries to reach agreement on a production quota plan aimed at bolstering world oil prices. Amoco rose 1/4 to 71 5/8; Mobil was unchanged at 42 5/8, and Atlantic-Richfield slipped 1/8 to 78.

Interco gained 3 to 67 3/4. The company, which is fighting a takeover bid by an investor group, increased the special dividends it would pay as part of a restructuring.

Among other takeover targets, RJR Nabisco rose 1 5/8 to 86 7/8 and Pillsbury was up 1 1/8 at 57.

Pillsbury Announcement

General Motors, which said a dividend increase was possible if earnings maintain their recent pace, added 7/8 to 82 1/4.

Other gainers among the blue chips included American Telephone & Telegraph, up 3/4 at 29 1/4; General Electric, up 3/8 at 44 3/8; International Business Machines, up 1 at 118, and Sears Roebuck, up 1/8 at 40.

Pillsbury Co. stock climbed 1 1/8 to 57 after the company reportedly indicated for the first time since becoming the takeover target of Britain’s Grand Metropolitan PLC that it may sell itself and its Burger King Corp. unit as separate companies.

Large blocks of 10,000 or more shares traded on the NYSE totaled 2,388, compared to 2,573.

The Wilshire index of 5,000 equities closed at 2,648.208, up 15.645 billion, or 0.59%, from Tuesday.

The NYSE’s composite index of all its listed common stocks gained 0.86 to 151.41.

Standard & Poor’s industrial index rose 1.90 to 309.45; its 500-stock composite index was up 1.79 at 269.00.

The NASDAQ composite index advanced 2.40 to 367.76; the American Stock Exchange index closed at 290.09, up 1.87.

Japanese financial markets were closed Wednesday for a holiday.

Share prices on the London Stock Exchange finished higher in active trading. The Financial Times stock exchange 100-share index settled 15.8 points, or 0.9%, higher at 1,837.1, near the day’s best level of 1,838.5.

All U.S. markets are closed today for the Thanksgiving holiday. Most will reopen Friday, but the New York Mercantile Exchange, New York Commodity Exchange and New York Coffee, Sugar and Cocoa Exchange will remain closed.