Uncertain Market Recoups Loss; Dow Advances 6.60

The stock market managed to post a moderate gain today in an atmosphere of uncertainty about the economic outlook.

The Dow Jones average of 30 industrials rose 6.60 to 2,304.80, recouping Tuesday’s 6.60-point loss.

Advancing issues outnumbered declines by more than 5 to 4 on the New York Stock Exchange, with 782 up, 607 down and 560 unchanged.

Big Board volume totaled 165.88 million shares, against 160.68 million in the previous session.

The NYSE’s composite index gained .50 to 166.45.

Analysts said it was difficult to discern how the market might respond when the Labor Department issues its monthly report Friday on the employment situation.

Private forecasts generally call for a smaller gain in nonfarm payroll employment than the 289,000 increase reported for February, when the unemployment rate fell to a 15-year low.

Not so long ago, that kind of news might have been interpreted as a plus for stocks, indicating a slackening of upward pressure on inflation and interest rates.

But lately many traders have begun to worry that the battle to restrain inflation might wind up producing a recession and an accompanying slump in corporate profits.

Government bond prices declined slightly and interest rates crept higher today: the atmosphere in the credit markets was cautious.

The benchmark 30-year Treasury bond showed a loss of 3/16 point, or around $1.87 per $1,000in face amount, while its yield edged up to 9.02% from 9.01% late Tuesday.

The federal funds rate, the interest on overnight loans between banks, was quoted at 9 ll/16, compared to 9 5/8% late Tuesday.