STOCKS : Market Seems Little Bothered by Drexel’s Fall

The stock market inched higher Wednesday, unruffled by the collapse of the once-powerful investment house of Drexel Burnham Lambert Inc.

The Dow Jones index of 30 industrials rose 0.22 to 2,624.32.

In the broader market, advancing issues slightly outnumbered declines in nationwide trading of stocks listed on the New York Stock Exchange, with 749 gaining, 681 losing and 519 unchanged. Volume totaled 138.53 million shares, down from Tuesday’s 144.44 million.

Drexel’s parent company filed Tuesday for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.

Although the closely watched Dow index slipped 29.06 points on Monday, the markets have since stabilized.

Drexel’s demise left many questions unanswered about the outlook for the high-yield bond market, but analysts said the markets took the news as no great surprise. Technical analysts said the stock market is likely to go down in the short term. Among actively traded blue chips, International Business Machines rose 1/2 to 103 3/4; Philip Morris gained 3/8 to 39 1/8; American Telephone & Telegraph closed unchanged at 40, and American Express dropped 1/4 to 29.

Great Northern Nekoosa climbed 2 to 64 in active trading. The company said it is looking to third parties for a higher takeover offer than the $63-a-share bid made for it by Georgia-Pacific.

In Japan, the Tokyo Stock Exchange gained slightly. The 225-share Nikkei index gained 48.86 points, closing at 37,155.89. In London, stocks finished slightly higher; the Financial Times 100-share index rose 5.1 points to 2,298.3.

CREDIT Government Bonds Fall in Profit Taking Government bond prices fell as traders took profits after the sharp gains of the previous session.

The Treasury’s bellwether 30-year bond, which rose 17/32 point on Tuesday, fell 5/16 point, or about $3.13 per $1,000 in face value. Its yield, which rises when the price declines, advanced to 8.41% from 8.38% late Tuesday.

Analysts said that there was little news to move the market and that Wednesday’s declines were due to the previous day’s run-up when traders sought the relative safety of Treasury

The federal funds rate, the interest banks charge one another on overnight loans, was quoted at 8.125%, down from 8.188% late Tuesday.

CURRENCY Dollar, Gold Dip in Quiet Trading The dollar weakened slightly against most major currencies in uneventful trading. Gold prices fell marginally.

Traders said there was little direction in the currency markets, reflecting uncertainty about such political and economic developments as the potential reunification of East and West Germany, President Bush’s trip to Colombia and Japan’s impending general election.

“We’re just at a standstill,” said Ronald Holzer, chief dealer at Harris Trust & Savings Bank in Chicago. “The financial markets are very calm . . . and are waiting to resume normal activities as soon as we get some economic news later this week.”

The government is expected to release Friday merchandise trade figures for December and industrial production during January.

In Tokyo, the dollar closed at 144.35 Japanese yen, down from 144.48 Tuesday. Later, in London, the dollar finished still lower, at 144.25 yen. In New York, the dollar closed unchanged at 144.35 yen.

In London, one British pound cost $1.6963 late Wednesday, up from $1.6907. In New York it cost $1.6960, up from $1.6895.

COMMODITIES Platinum Gains; Gold, Silver Retreat Prices of platinum futures posted substantial gains on the New York Mercantile Exchange in a rally that some observers linked to Drexel.

Gold and silver futures retreated.

Gold futures finished 90 cents to $3.20 lower on New York’s Commodity Exchange with February at $416.70 an ounce; silver was 0.3 cent lower across the board with March at $5.33 an ounce.

Platinum futures settled $4.40 higher across the board, with the contract for delivery in April at $526.90, its highest settlement since Nov. 28.

Platinum has drawn strength this week from the possibility of supply disruptions in South Africa, the world’s leading producer. But analysts said Wednesday’s rally appeared rooted in technical factors, Far Eastern buying and Drexel’s consolidation of its commodity-brokerage operations.

On other commodity markets, petroleum futures rose, grains and soybeans were mostly higher and livestock and meat futures were mixed.