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Dow Advances 8.74 to Flirt With Record

October 30, 1985|From Times Wire Services

NEW YORK — A comment by Federal Reserve Chairman Paul A. Volcker to a Canadian civic club gave a lift to the stock and bond markets Tuesday, sending prices broadly higher amid diminished investor concern over future interest rates.

At one point, the Dow Jones average of 30 industrial stocks was more than 4 points above its Oct. 17 record closing high of 1,369.29. But, at the close of trading, the average stood just under the record at 1,368.73, up 8.74.

Volume on the New York Stock Exchange was 110.60 million shares, up from Monday's 97.88 million shares.

Speaking in Toronto, Volcker said he did not expect that the recent expansion of the money supply would kick off a new jump in inflation, even though the growth has been greater than the Fed would like.

Investor's Concerned

"Volcker's comments seemed pretty much good news, coming from him," said Eldon A. Grimm, senior vice president of Birr, Wilson & Co. "The market took his comments to mean that he doesn't feel interest rates are going to rise."

Investor concern over the rapidly expanding money supply--which some see as a precursor to rising inflation and higher interest rates--has recently been worrying the market and dampening investor enthusiasm.

The Dow Jones transportation and utility averages both closed higher.

Leading the NYSE most active trading list was Beatrice, which closed down 3/8 at 43 1/2 after saying that it had received a second, sweetened, unsolicited offer of $47 a share from Kohlberg Kravis Roberts & Co.

Also on that list were AT&T, up 3/4 to 20 3/4; Westinghouse Electric, up 1 to 43 1/8, and Chevron, which closed down at 39 1/2 after reporting a drop in its third-quarter earnings.

Airlines were mixed. TWA was down at 22 1/2. UAL, which slipped Monday after reporting lower earnings, bounced back 1 1/2 to 47 1/2.

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