Dow Manages 9.16 Gain in Late Trading

Stock prices turned higher in late trading today after pausing to correct a rally of nearly 200 points from mid-October lows.

The Dow Jones industrial average closed up 9.16 points at 2,539.36. New York Stock Exchange volume was moderate at 142.66 million shares. Declines led advances by a 2-1 margin.

Stocks slipped early in the day, but the selling lacked followthrough, which was viewed as a positive factor.

Analysts noted that many key traders were absent before Thanksgiving Day, and the void made the market volatile. Trading tapered off throughout the session as traders who did attend got an early start on the holiday.

Stock prices have rallied briskly in recent weeks as hopes have mounted for lower interest rates.

But analysts said traders seem reluctant to join too enthusiastically in the upswing until they can get a better fix on the likely extent of the recession.

Gainers among the blue chips included International Business Machines, up 1/4 at 113 5/8 an hour before the close; General Electric, up 1/8 at 53 3/8; Boeing, up 1 1/2 at 44 1/8, and Eli Lilly, up 2 1/4 at 68 1/4.

Bank stocks were broadly lower. BankAmerica dropped 3/8 to 22 5/8; NCNB 7/8 to 24 1/8; Citicorp 1/4 to 12 3/4; Chase Manhattan 1/8 to 10 1/2, and Manufacturers Hanover 1/4 to 18 1/4.