Dow Up 17.83; NYSE Hits Record High : Market Overview

* Wall Street stocks, drawing strength from recovering blue chip issues and a sustained rally in smaller shares, ended higher in heavy trading.

* Treasury bond yields ended the week slightly lower in uneventful trading.

Stocks

Investors were relieved that the United States and the European Community clinched a deal over farm subsidies that avoided a nasty trade war.

The Dow Jones industrial average rose 17.83 points to close at 3,227.36. In the broad market, gainers led decliners 1,090 to 700 on the New York Stock Exchange. Volume was heavy at 257.46 million shares, up from 219.30 million on Thursday. Volume for the week was 1.3 billion shares.

The New York Stock Exchange composite index and Standard & Poor’s 500 stock index both closed at record highs.

The NASDAQ composite index came within less than 4 points of its all-time high of 644.92.

Traders said buying also stemmed from the double expiration of November contracts for individual equity options and stock index futures.

Several blue chip stocks, which had lagged the secondary market, posted strong gains, boosting the overall market.

Among the markets highlights:

IBM, which hit a 10-year low in the previous close, gained 1 to 62 1/2. Hewlett-Packard advanced 2 3/8 to 61 after a strong gain earlier in the week when it said orders were strong.

* General Electric jumped 1 7/8 to 80. The company raised its quarterly dividend from 59 cents a share to 63 cents a share.

* American Telephone & Telegraph was up 5/8 at 47 5/8, touching new highs since the 1984 Bell System breakup; General Motors rose 5/8 to 31; Coca-Cola gained 1/8 to 40 7/8, and Boeing was up 1/2 at 34 1/4.

* Taubman Centers, among the volume leaders, traded at 11 5/8 after an initial public offering at 11.

* Retailing stocks, which have been strong in recent weeks on hopes for a reasonably good Christmas selling season, were mostly higher again Friday. Wal-Mart Stores gained 3/4 to 62 1/2; The Limited was up 3/4 to 26 7/8; Gap Inc. gained 1 to 37 7/8; Merry-Go-Round Enterprises rose 3/4 to 15 1/2, and Dillard Department Stores spurted 1 3/4 to 49 1/4.

Overseas, prices rallied in London, with the Financial Times 100-share average jumping 26.2 points to 2,732.4. In Tokyo, the 225-share Nikkei average closed up 162.29 points at 17,033.60. In Frankfurt, the 30-share DAX average finished 6.89 points lower at 1,544.76.

Credit

Trading was quiet, with bond prices holding within narrow ranges. Analysts said there was no fresh news to move the market.

The yield on the Treasury’s main 30-year bond slid to 7.53% from 7.55% late Thursday.

Its price, which moves inversely to its yield, was up 7/32 point, or $2.18 per $1,000 in face amount.

The federal funds rate, the interest on overnight loans between banks, was quoted at 3%, down from 3.125% late Thursday.

Currency

The dollar surged against European currencies in heavy trading on word that European finance officials are poised to readjust currency values.

Officials in Brussels said the European Community’s Monetary Committee will gather in the Belgian capital today to discuss the possible realignment of the European monetary system and devaluation of the Spanish peseta.

In New York, the dollar closed at 124.35 Japanese yen, up from 123.45, and at 1.605 German marks, up from 1.5720.

Commodities

Soybean futures prices fell on the Chicago Board of Trade after the United States and the European Community reached a farm policy agreement that averted a trade war, but disappointed U.S. soybean farmers.

Soybeans for January delivery fell 4.75 cents to $5.595 a bushel in Chicago, wiping out gains that the market had accumulated during the week in anticipation of a more favorable trade agreement.

Meanwhile, gold fell 10 cents an ounce to $335.20 on New York’s Commodity Exchange in quiet trading. Silver fell 0.6 of a cent to $3.757 an ounce.

Light, sweet crude oil closed at $20.40 a barrel, down 14 cents.