STOCKS : Dow Up 19.05; Late Program Trades Credited

Blue chip stocks gained on a late wave of computer-driven program buying Wednesday, but uncertainty about the economy and interest rates tempered the rise.

The Dow Jones industrial average rose 19.05 points to 2,949.50, a 0.7% gain.

Advancing issues outnumbered declines among New York Stock Exchange issues, with 841 up, 725 down and 510 unchanged.

But Big Board volume slipped again, to 166.80 million shares from Tuesday’s 167.84 million. And most major indexes rose less than the Dow. The Standard & Poor’s 500 index, for example, inched up just 0.3%, rising 0.96 points to 382.72.

Many traders seemed to be squaring their books ahead of key economic data--especially the first-quarter gross national product figures due Friday.

Stocks have been churning since last week, as investors have grown uncertain about the economy and interest rates. Wall Street wants the recession to end, but not too abruptly, because a fast recovery could send interest rates soaring.

A spate of weak economic numbers this week, including poor April car sales figures released Wednesday, seem to indicate that the economy still is mired in recession. That has raised hopes that the Federal Reserve will push interest rates lower. But many traders fear that a better-than-expected GNP report on Friday could shut the door on rate hopes.

The market’s moderate volume this week indicates the degree of caution, analysts said.

“The market is consolidating and getting rid of some of the excesses we had in January, February and March,” said analyst David Holt at Wedbush Morgan Securities.

While program-buying helped the Dow on Wednesday, analyst Peter Davies at Nomura Securities said “we’re seeing some natural bargain hunting” as well, with the Dow off from its record close of 3,004 a week ago.

Among the market highlights:

* Defense firms that won the contract for the new U.S. fighter plane soared in early trading, then fell back. Lockheed reached a new 52-week high of 44 1/2, but ended just 3/8 ahead at 42 7/8. Boeing tacked on 1/4 to 47 3/4, and General Dynamics added 5/8 to 37 1/2.

The losing bidders plummeted. McDonnell Douglas tumbled 3 5/8 to 46 3/4, and Northrop slid 3 1/4 to 23 3/4.

* Investors continued to take profits in food and drug stocks that have led this year’s rally. Warner-Lambert fell 1 1/2 to 72 5/8, Pfizer dropped 1 to 54 5/8, Gerber lost 1 7/8 to 60 1/8 and Campbell Soup fell 1 3/8 to 82 1/4. Meanwhile, Agouron Pharmaceuticals of La Jolla leaped 2 1/2 to 17 1/4 after forming a pact with Schering Plough to develop anti-cancer drugs.

* Procter & Gamble, which reported lower-than-expected third-quarter earnings, lost 7/8 to 84 after trading as low as 82 7/8.

Other stocks moving on quarterly earnings reports included financial services firm Broad Inc., up 3/8 to 11 1/4 after reporting slightly higher earnings, and software firm Legent, which plunged 5 3/8 to 28 5/8 after reporting flat earnings.

* Retailers were generally strong. Home Depot gained 1 3/8 to 59 1/2, Sears rose 1 5/8 to 38 5/8, and Kmart added 1 1/2 to 41 3/8.

* Among Southland issues, Western Waste Industries jumped 3 to 20 3/8 after Riverside County agreed to allow expansion of the company’s landfill there. Whittaker gained 3/8 to 16, a new 52-week high, after saying it dropped talks to sell a subsidiary to Maxxam, and instead has other parties interested in the unit. Computer Sciences fell 1/2 to 66 in advance of a lower quarterly profit report released after the market close.

In overseas trading, stocks closed moderately lower in Tokyo after another day of thin trading. The 225-share Nikkei average lost 161.36 points to 26,330.21.

In Germany, the 30-share DAX average ended 6.68 points higher at 1,603.73. In Britain, the Financial Times average of 100 leading shares lost 15.2 points to 2,488.6.

Credit

Bond yields fell on word of new economic weakness and a surprisingly good reception for new Treasury notes.

The Treasury’s bellwether 30-year bond gained 5/8 point, or $6.25 per $1,000 in face amount. Its yield fell to 8.20% from 8.27% on Tuesday.

Auto makers reported sales of North American-made cars and light trucks slid 12.7% in mid-April, providing no sign of an anticipated recovery. That encouraged bond traders, who are hoping for lower interest rates ahead.

Also, the Treasury sold $12 billion in two-year notes at an average yield of 7%. A record $44.12 billion of bids were received, a demand level that suggests the Treasury could have an easier time floating its heavy calendar of other note and bond sales over the next few weeks.

The federal funds rate, the interest on overnight loans between banks, fell to 5.813% from 5.875% late Tuesday.

Currency

The dollar rose, especially against the German mark, as the Federal Reserve failed to join other central banks that intervened to slow the dollar’s advance.

In New York, the U.S. currency ended at 1.746 German marks, compared to 1.741 on Tuesday, and at 137.80 Japanese yen, compared to 137.64.

Some dealers said they were encouraged to buy dollars because, for the second day in a row, European central banks intervened in the currency markets while the Fed refrained. At least 12 European banks, led by Germany’s Bundesbank, sold the dollar in an effort to defend the mark, dealers and monetary officials said.

The apparent lack of coordination between the Fed and European banks prior to a weekend meeting of the G-7 industrialized nations caused some confusion. Some dealers speculate that the seven will agree to cut interest rates, perhaps letting German rates stay unchanged. That would tend to push the dollar down.

Commodities

Grain and soybean futures went on a roller coaster ride on the Chicago Board of Trade, charging higher at the opening, stumbling halfway through the session and then recovering to a mixed finish.

Wheat futures settled 1.50 to 2 cents lower, with the May contract at $2.792 a bushel; soybeans were 1 cent lower to 1 cent higher, with May at $5.95 a bushel.

Soybeans soared at the open on Tuesday’s report from a Brazilian agency that it was slashing the forecast for the country’s 1991 soybean harvest. Prices later dropped after large commission firms took profits.

But soybeans later climbed again on strong support from soybean meal, which surged as much as $3.50 a ton, to $177.40, in response to active European trading.

On the New York Mercantile Exchange, energy futures had an erratic session that ended with slight declines. Light, sweet crude settled 11 cents lower to 6 cents higher, with June at $20.94 a barrel.

Gold settled 70 cents to $1 lower, with April at $356.10 an ounce. Silver fell 1.7 cents to $3.92.

Market Roundup, D6