Quake Can’t Shake Wall Street; Dow Up

Stock prices posted modest gains today as the market calmed after three skittish sessions.

The earthquake didn’t do noticeable damage to the market; some companies’ stocks benefited as investors bought on the hunch that business might boom during cleanup of the destruction in the San Francisco Bay area.

The Dow Jones average of 30 industrials rose 4.92 to 2,643.65 and raised the widely watched measure 74.39 points above the level reached in Friday’s 190-point plunge.

Advancing issues outnumbered declines by about 6 to 5 on the New York Stock Exchange, with 811 up, 662 down and 461 unchanged.

Big Board volume totaled 166.9 million shares, down from 224.07 million in the previous session.

The NYSE’s composite index rose 0.43 to 189.32.

At the American Stock Exchange, the market value index gained 2.91 to 378.07.

“Today was very peculiar,” said Peter Canelo, chief investment strategist at Bear, Stearns & Co. “We have an earthquake, and the market calms down.”

Activity on Wall Street was subdued compared to the chaotic trading that began with Friday’s 190-point tumble in the Dow Jones average. Computer-guided maneuvers, which had tugged stock prices up and down during the three previous sessions, were not much of a factor in today’s trading.

Insurance stocks rose amid speculation that heavy quake-related claims, coming after losses from Hurricane Hugo, could lead insurers to raise premium rates, enhancing the industry’s profitability. There also was speculation that the big temblor Tuesday could increase demand for earthquake insurance coverage.

Some construction stocks surged in anticipation of greater demand for cement and other building materials on account of the quake. Technology stocks appeared to shrug off initial concerns in the market about problems at Silicon Valley facilities.

Pacific Gas & Electric fell 3/8 to 19 5/8, but the San Francisco-based utility said recovering from the quake would not put a significant financial strain on the company.

Chevron, which has its headquarters in San Francisco, rose 1 to 65 in heavy trading.

AMR, which rose 3/4 to 74, was the most heavily traded issue.

Bond prices edged higher and yields on Treasury bills slipped in early trading today.

The Treasury’s benchmark 30-year bond was up 1/8 point, or about $1.25 per $1,000 face amount, at midday.