Dow Advances 14.67, Extends Record Streak : Market Overview

Blue chip stocks closed at a record high for the second straight session, propelled by gains in economically sensitive shares.

* Gold prices soared as the dollar’s weakness raised concerns that inflation pressures are growing in the United States. Strong overseas buying and uncertainties over Russian supplies also contributed.

* Yields on short-term Treasury securities soared as their prices plunged as part of a broad market decline influenced by fears that the Federal Reserve may act soon to raise interest rates.

* The dollar closed at another record low against the Japanese yen.

Commodities

Precious metals in general were supported by the dollar’s weakness against major foreign currencies, which could have inflationary effects. Precious metals are traditional investment hedges against inflation.

Buying in the gold market erased Wednesday’s losses as participants grew convinced that a rumored sharp increase in Russian gold reserves was exaggerated, one analyst said.

On the Comex in New York, gold for current delivery jumped $6.10 an ounce to $381.40.

Stocks

The Dow Jones industrial average added to Wednesday’s record high, rising 14.67 to 3,554.83 on Big Board volume of 300.81 million shares as of 4 p.m., up from 278.81 million on Wednesday.

But in the broader market, declining issues beat out advances by about 10 to 9 on the New York Stock Exchange.

“For the Dow being at new highs here, nobody’s getting too excited,” one trader said.

Analysts said investors were cautious ahead of a House vote later Thursday on President Clinton’s economic plan.

Among the market highlights:

* UAL Corp., parent of United Airlines, fell 1 3/4 to 136 1/4 after Wall Street analysts cut their earnings estimates for the nation’s second-largest airline because of weakness in Far East traffic.

* Among gold shares, Newmont Mining rose 1 7/8 to 52 1/4, Placer Dome added 3/8 to 17 5/8, and Homestake Mining gained 1 1/2 to 19 1/4.

* Morgan Stanley rose 2 3/4 to 66 on better than expected earnings.

* Fieldcrest Cannon, best known for its towels, rose 2 3/4 on the NYSE to 26 3/8 after it announced that it had received a takeover offer of $27.50 per share from Springs Industries. Springs fell 1 1/2 to 47 1/4.

Stocks were mixed in overseas trading. On the Frankfurt bourse, the 30-share DAX average closed up 12.47 points to 1,634.47. London’s Financial Times 100-share average jumped 8.4 points to 2,855.3. Stocks closed lower in Tokyo, where the 225-share Nikkei average was down 43.36 points to 20,852.63.

Other Markets

The interest rate concerns, fanned by a TV news report on the central bank’s meeting last Tuesday, spooked the bond market,

Meanwhile, in currency trading, the dollar plunged to another record low against the Japanese yen in New York despite reports that the Federal Reserve Bank repeatedly intervened to try to arrest its decline.

The dollar closed at 107.20 Japanese yen, down from late Wednesday’s 108.50 yen.

In New York, the dollar fell to 1.605 German marks, down from 1.628 on Wednesday. The British pound rose to $1.561, more expensive than late Wednesday’s $1.549.

Market Roundup, D6