FINANCIAL MARKETS : Dow Rises 17 as GE Announces Stock Buyback

The stock market got an old-fashioned lift Friday from news of General Electric’s plans to buy back as much as $10 billion of its shares.

The Dow Jones index of 30 industrials rose 17.00 to 2,652.66, finishing the week with a net gain of 27.05 points.

Advancing issues outnumbered declines on the New York Stock Exchange, with 766 up, 682 down and 519 unchanged.

Big Board volume rose to 151.02 million shares from 148.37 million on Thursday.

General Electric helped stir revived interest in blue chip issues, reporting plans for its repurchase of stock over the next five years and an increase in the quarterly dividend to 47 cents a share from 41 cents. GE shares climbed 2 to 59 1/2 as the day’s most active Big Board-listed issue.

Hewlett-Packard Co.’s better-than-expected earnings report added strength, giving technology issues a lift. The company gained 3 1/4 to 44 1/2 on the company’s report of slightly higher quarterly earnings.

Among other actively traded blue chips, International Business Machines rose 2 to 99 1/8, Philip Morris gained 1/4 to 41 3/8, Exxon added 3/4 to 46 1/4, and Union Carbide rose 5/8 to 23 7/8.

Traders said the expiration of stock index futures and options accounted for some volatility. The tight breadth between advancing issues and declining issues showed that the market’s rally was subdued, they said.

“It was a reasonably resilient showing, even with all the cross currents going on, such as the options and bargain hunters,” said Michael Metz at Oppenheimer & Co.

The Tokyo stock market edged up to its fifth-consecutive record close, although buying again was restrained and leadership was lacking. The Nikkei 225-share index rose 87.40 points to close at 35,963.74.

Stock prices also closed moderately higher on London’s stock exchange, as the market got a lift from a report that Britain’s inflation rate dipped in October. The Financial Times 100-share index rose 11.6 points to 2,221.4.

Credit

Bond prices slumped as traders sold to reduce supplies after overstocking during a recent series of government auctions.

The bond market’s benchmark 30-year Treasury issue dropped 25/32 point, or $7.81 for every $1,000 in face amount. Its yield, which rises when the price falls, went up to 7.93% from 7.86% late Thursday.

The federal funds rate, the interest on overnight loans between banks, was quoted at 8.375%, down from 8.50% late Thursday.

Currency

The dollar finished mixed in a quiet session, with traders lacking any incentive to buy or sell heavily.

Demand for marks has increased as currency investors speculate that West German economic growth will accelerate due to closer ties with East Germany.

The dollar ended lower against most major currencies in U.S. trading after a mixed performance overseas.

In Tokyo, the dollar rose to a closing 143.98 Japanese yen from 143.85 yen at Thursday’s close. Later, in London, it rose to 144.15 yen. By the time trading was done in New York, the dollar was quoted at 144.25 yen, unchanged from Thursday’s late level.

In London, the British pound fell to $1.5705 from $1.5805 late Thursday. The pound weakened further in later New York trading, falling to $1.5670 from $1.5755 on Thursday.

Commodities

Precious metals futures prices rose broadly, supported by continued investor buying of gold, silver and platinum, and by supply fears in the palladium market linked to reports of problems at a Soviet nickel refinery.

Gold closed near its high for the week, prompting predictions by analysts that it will test the psychologically important $400-an-ounce level next week.

On other commodity markets, copper sank to four-month lows, energy futures rose, livestock and meat futures were mixed, and grains and soybeans were mixed.

Tables begin on D5