Stock Gainers, Losers Near Even; Dow Up

The stock market was mixed today in a meandering trading session as traders studied a slightly stronger-than-expected reading on the state of the economy.

The Dow Jones average of 30 industrials rose 6.75 to 2,743.69.

But declining issues slightly outpaced advances on the New York Stock Exchange, with 700 up, 720 down and 552 unchanged..

Big Board volume totaled 142.30 million shares, against 131.61 million in the previous session.

The NYSE’s composite index gained .37 to 187.77.

Many investors stood on the sidelines, unconvinced that Tuesday’s big 29.28 point gain in the Dow index marked the beginning of any solid upward market move. A loss in Tokyo stocks also pressured blue chip stocks in New York.

The Commerce Department said the gross national product grew at a 1.1% annual rate, after adjustment for inflation, in the fourth quarter of last year.

The figure was revised upward from a previous estimate of 0.9%, and came in above most analysts’ expectations.

Many observers viewed it as a modest new indication that the pace of business activity seemed to be picking up slowly, reducing the chances of any full-fledged recession.

At the same time, however, traders also appeared to conclude that the odds were shifting in favor of higher interest rates in the months ahead.

Bond prices were lower in quiet trading early today.

The Treasury’s closely watched 30-year bond was down 3/8 point, or $3.75 for every $1,000 in face value, at around midday. Its yield, which rises when the price falls, jumped to 8.50% from 8.46% late Tuesday.

Analysts noted that bond prices declined despite a government report today on the gross national product indicating slow economic growth, which is usually favorable to bonds.

The Commerce Department said the economy posted a 1.1% gain from October through December, the slimmest quarterly advance in three years, helping slow the increase of goods and services to just 3% in 1989.

“The GNP figure didn’t do all that much,” said Mitchell Held, chief financial economist at Smith Barney, Harris Upham & Co. “We’re sitting back and waiting.”

Bond traders are waiting for new economic indicators to be released next week, especially a report by the nation’s purchasing managers and government data on unemployment, Held said.

In the secondary market for Treasury securities, prices of short-term government issues were down 3/32 point, intermediate maturities declined 1/8 point to 7/32 point, and long-term issues fell 1/4 point to 3/8 point, according to figures provided by Telerate Inc., a financial information service.

The movement of a point equals a change of $10 in the price of a bond with a $1,000 face value.