Stocks Rise in Quiet Trading; Dow Gains 15

The stock market gained ground in a quiet session Wednesday, bidding again to mount a year-end rally.

The Dow Jones index of 30 industrials, down 2.13 on Tuesday, climbed 15.14 to 2,724.40.

Advancing issues outnumbered declines by about 5 to 3 in nationwide trading of New York Stock Exchange-listed companies.

Big Board volume was 133.73 million shares, up from 77.61 million in the previous session. Nationwide, consolidated volume in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 176.89 million shares.

Analysts found little in the economic news to stir the market out of its recent lethargy. Interest rates were narrowly mixed in the credit markets.

Germany Fund jumped 2 3/8 to 17 1/4 in active trading as the West German stock market soared to new highs, propelled by enthusiasm about the ascendance of democracy in Eastern Europe.

Gainers among the blue chips included Philip Morris, up 1/4 at 40 1/4; Sears, Roebuck, up 1/2 at 37 7/8; International Business Machines, up 1/4 at 94 3/4; Ford Motor, up 1/4 at 43 1/4, and General Electric, up 3/8 at 63 3/4.

Hilton Hotels fell 6 7/8 to 82 7/8 on a report that efforts to sell the company had attracted lower bids than had been predicted.

Tokyo share prices sailed ahead Wednesday, propelled by index-linked buying and scattered buying by investment trust funds, arbitragers and individual investors.

The 225-share Nikkei index rose 120.32 points, or 0.31%, to a record 38,801.63.

In London, shares extended early sharp gains. The Financial Times 100 index closed up 33.8 points at 2395.8.

CREDIT

Bonds Stabilize, Prices End Higher Bond prices finished mixed in thin trading as the market steadied itself following Tuesday’s steep fall.

The Treasury’s closely watched 30-year bond edged up about 1/8 point, or $1.25 for every $1,000 in face value. Its yield, which declines when the price rises, slipped to 7.98% from 7.99% late Tuesday.

Analysts said the advance was mainly a rebound from Tuesday’s selloff and did not reflect any fundamental trends.

The federal funds rate, the interest on overnight loans between banks, was quoted at 8.75%, up from 8.5% late Tuesday.

CURRENCY

Dollar Continues to Lose Ground The dollar drifted mostly lower in very thin trading, dipping to what traders said was its lowest level against the West German mark since the spring of 1988.

Gold prices, meanwhile, declined sharply in the United States and overseas. On the Commodity Exchange in New York, gold bullion for current delivery settled at $400.80 an ounce, down $6 from Tuesday. Republic National Bank in New York quoted a late bid for gold at $400.55 an ounce, off $6.45.

Currency dealers said the dollar remained pressured by the continued strength of the mark and by expectations that U.S. interest rates will decline further because of weakness in the economy.

In late New York trading, the dollar closed at 1.6895 West German marks, down from 1.7090 Tuesday.

In Tokyo, the dollar fell to 142.10 Japanese yen from 142.37 yen Tuesday. It traded at 142.05 yen in London and at 142.00 yen in New York, up from 141.845 yen Tuesday.

The dollar was weaker against the British pound. In London, sterling rose to $1.6255 from $1.6205 late Friday. Later, in New York, it fetched $1.6275, up from $1.6265 Tuesday.

COMMODITIES

Precious Metals Prices Tumble A near-record increase in silver inventories sent futures in silver and the rest of the precious metals complex tumbling to steep lows in New York.

Heating oil and frozen concentrated orange juice, also traded in New York, continued to climb because of record cold weather.

Silver holdings in Commodity Exchange warehouses rose to 239 million ounces, sparking a massive selloff that spilled over to gold and platinum futures.

The rise in silver stocks indicated abundant supply and lukewarm demand.

The most active March silver contract fell 28.4 cents an ounce to close at $5.320 an ounce on the Commodity Exchange.

Gold prices fell to test key support at $400 an ounce, and analysts attributed the losses to silver.

“Silver was the weak sister today, which dragged everything else lower,” said one commission house trader.

As a result of sympathetic selling, the most active February gold contract closed $6.30 an ounce lower at $403.80.

New York Mercantile Exchange platinum also ended with sharp losses in all contracts.

The spot January platinum contract bottomed at $501.20 an ounce before recovering slightly to close with a $6.80 loss at $503.10 an ounce.

While precious metals nose-dived, heating oil and orange juice advanced further, boosted by a cold snap that severely damaged citrus crops and drove energy prices higher.

Orange juice futures closed mixed, with deferred contracts closing up their 5-cents-a-pound limit on expectations of yield losses.

The spot January contract posted a small loss of 2.95 cents to end at 150.15 cents a pound following a 15-cent rally on Tuesday.

Analysts said the deferred contracts were playing “catch-up” to the spot month.