Dow Soars 56.95 to All-Time High : Wall Street: Industrial average breaks the 2,800 barrier for the first time.

Wall Street began the new year with a bang today, surging to the all-time closing high in the year’s first session.

A blue chip rally carried the Dow Jones industrial average up 56.95 points to 2,810.15, it’s first-ever close above the 2,800 mark.

The closing high tops the previous Dow record close of 2,791.41 reached on Oct. 9, 1989.

The rally was not linked to any specific news event but was instead viewed as enthusiastic start-of-the year buying of selected blue chips such as IBM, which led the market with a gain of 3 3/4 points to 98 1/8.

The broader market also chalked up big gains, but volume was light as some traders took an extended New Year’s holiday.

Stocks began the session by falling as traders nervously awaited the National Assn. of Purchasing Management monthly report on the manufacturing economy during December.

But prices moved broadly higher when the association’s survey of its members indicated that the industrial sector remained weak for the eighth straight month. Traders believe the Federal Reserve is more likely to nudge interest rates lower if the economy is slowing.

Prices also were boosted as institutional investors, flush with cash after liquidating some of their holdings at year’s end, began to pick up stocks, especially the blue chips.

Program trading also added to the gains, especially in the last half-hour, when the Dow average surged more than 29 points.

On the trading floor as of 3 p.m., Manufacturers Hanover was the most active NYSE issue, up sharply.

Philip Morris followed, posting a gain. IBM was third, also sharply higher as the technology sector rebounded after a year-end slump.

Among the other blue chips, AT&T;, General Electric, Eastman Kodak, Woolworth and International Paper all were higher.

In the technology sector, Unisys was higher while Digital Equipment, Compaq and Hewlett-Packard rose sharply.

Advancing issues outdistanced decliners by a margin of about 3 to 1 on the New York Stock Exchange, with 1,254 stock rising, 404 falling and 333 unchanged.

Big Board volume totaled 162.07 million shares, against 145.94 million in the previous session.

The NYSE’s composite index rose 2.95 to 197.99.

Bond prices were mixed in early trading today as the market absorbed a new report on U.S. manufacturing.

The Treasury’s closely watched 30-year bond was down 1/32 point, or 31 cents for every $1,000 in face value, at around midday. Its yield was unchanged from Friday at 7.97%.

The market was closed Monday for the New Years Day holiday.

In the secondary market for Treasury bonds, prices of short-term government issues were unchanged to 1/32 point higher, intermediate maturities had edged up 1/32 point to 1/16 point and long-term issues were unchanged to 1/16 point lower, according to figures provided by Telerate Inc.

The Shearson Lehman Hutton daily Treasury bond index, which measures price movements on all outstanding Treasury issues with maturities of a year or longer, was down 0.18 at 1,188.23.

The federal funds rate, the interest banks charge each other for overnight loans, was quoted at 8 7/16%, up from 7 1/2% on Friday.